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Settlement Reached With Wilmington Trust in Lawsuit Over Trust Fund Investment Losses

The Dallas-based trial law firm Rose•Walker has reached a favorable settlement on behalf of a Dallas man whose trust fund was decimated through fraudulent investment and poor supervision by his investment managers and fund trustee.

 
PRLog - Jun. 30, 2011 - DALLAS -- DALLAS – The Dallas-based trial law firm Rose•Walker has reached a favorable settlement on behalf of a Dallas man whose trust fund was decimated through fraudulent investment and poor supervision by his investment managers and fund trustee.

The breach of contract, breach of Texas Trust Code, and breach of fiduciary duty lawsuit stems from losses incurred by Dallas resident Hunter Woodlee after he relinquished control of his investment portfolio to Dallas investment advisors Brian Guinn and Christopher Griffin and their firm, 4G Group, and entered into an agreement with Delaware-based AST Capital Trust Company to be his fund trustee.

“This is a real horror story for anyone who has set up a trust fund thinking that the trustee safeguards provide a degree of protection from fraud,” says Rose•Walker founding partner Martin Rose. “These investors worked methodically to circumvent the protections built into the Texas Trust Code.”

According to court documents, AST and 4G persuaded Mr. Woodlee to turn over control of his trust promising minimum annual returns of 15 percent.

The trust, created by Mr. Woodlee’s deceased father to provide for his son’s future, was safeguarded by the Texas Trust Code, which requires that an independent trustee oversee investment activities for the trust and act in the beneficiary’s best interest.

The trustee, AST, instead gave 4G free reign to self-deal and pursue speculative and risky investments amounting to more than $1 million, while paying themselves unreasonably high fees. Among other things, AST allowed 4G to invest Mr. Woodlee’s trust in a fund in which Mr. Griffin was a principal. As losses mounted from questionable investments, AST failed to investigate and monitor the investment portfolio.

Rose•Walker attorneys Martin Rose, Bryan Rose and Chris McDowell, reached a favorable settlement with Wilmington Trust, AST’s successor. Terms of the settlement are confidential.

“This case illustrates the lengths to which trustees and their agents will go to circumvent the safeguards protecting beneficiaries against abuse and mismanagement, all in the name of profit,” says Bryan Rose. “By taking an aggressive approach to litigation, we were able to hold the trustee and its agents responsible, reach a settlement and avoid the necessity of trial. This case also benefitted greatly from the role of American National Bank of Texas, which after becoming successor trustee, was willing to take a stand.”

Rose•Walker, L.L.P. is a premier trial law firm, focusing on complex civil litigation. The firm represents businesses and individuals, and its many major courtroom victories have helped Rose•Walker earn a national reputation for excellence. To learn more about the firm, please visit www.rosewalker.com.

For more information on the trust fund lawsuit, please contact Robert Tharp at 800.559.4534 or robert@androvett.com.

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Rose•Walker, L.L.P. is a premier trial law firm, focusing on complex civil litigation. The firm represents businesses and individuals, and its many major courtroom victories have helped Rose•Walker earn a national reputation for excellence. To learn more about the firm, please visit www.rosewalker.com.

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Contact Email:
***@androvett.com Email Verified
Source:Robert Tharp
Phone:214-559-4630
Zip:75219
Location:Dallas - Texas - United States
Industry:Business, Legal
Tags:rose walker, trust estate fraud, investment fraud, texas trial lawyer, dallas trial attorney, dallas business law
Shortcut:prlog.org/11566535
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