Truist Bank was fined more than $9.1 million in a settlement that reveals alleged lapses of fiduciary oversight by its predecessor, SunTrust.
The case stems from the actions of SunTrust Bank, which was acquired by Branch Banking and Trust Company in December 2019 to form Truist. Between December 2011 and December 2015, SunTrust allegedly mismanaged certain trust accounts associated with The Halpern Group, a New Jersey-based “structured settlement facilitator”[1][2].
At the center of the controversy are the “Doe Run Accounts,” established for beneficiaries of lead poisoning settlements near Herculaneum, Missouri. These accounts were meant to protect vulnerable individuals with health and cognitive issues from unwise financial decisions. However, the Justice Department contends that SunTrust, in collaboration with Halpern, frequently approved imprudent disbursements that were not in the beneficiaries’ best interests, including payments to third parties such as relatives.
U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia emphasized the gravity of the situation, stating, “Banks occupy a special place of trust in our society. This settlement shows that when banks violate that trust — especially in situations involving vulnerable customers — they will face accountability”.
Additional Reading Material:
[1] https://www.nasdaq.com/articles/north-carolinas-truist-bank-pay-9m-resolve-allegations
[2] https://due.com/north-carolinas-truist-bank-to-pay-9m-to-resolve-allegations/
[3] https://www.justice.gov/opa/pr/truist-bank-pays-over-9m-resolve-allegations-concerning-suntrust-banks-administration-trust
[4] https://www.justice.gov/usao-ndga/pr/truist-bank-pays-over-9-million-resolve-allegations-concerning-suntrust-banks
[5] https://legalnewsline.com/stories/665317351-truist-bank-resolves-allegations-over-suntrust-s-handling-of-trust-accounts
[6] https://www.sahmcapital.com/news/content/truist-bank-agrees-to-pay-913m-to-settle-allegations-related-to-suntrust-banks-trust-account-administration-between-2011-and-2015-2024-10-21
[7] https://news.law/truist-bank-pays-9m-to-settle-allegations-over-suntrust-accounts/
[8] https://atlstandard.com/stories/665319294-truist-bank-settles-9-million-claim-over-alleged-mishandling-of-trust-accounts