ATL Standard

Truist Bank, headquartered in Charlotte, North Carolina, has agreed to a settlement of $9,125,000 with the United States government. This resolution addresses claims under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) concerning SunTrust Bank's management of certain trust accounts from December 2011 through December 2015. SunTrust was acquired by Branch Banking and Trust Company in December 2019, forming Truist.

U.S. Attorney Ryan K. Buchanan stated: “Our financial institutions occupy a special place of trust in our communities. This settlement demonstrates our office’s commitment to hold accountable any bank that violates its fiduciary duties to beneficiaries, especially in situations involving vulnerable clients.”

Principal Deputy Assistant Attorney General Brian M. Boynton emphasized the importance of compliance by stating: “Our federally insured financial institutions must act in accordance with the law, including meeting their obligations to beneficiaries when they serve as trustees. Today’s settlement makes clear that the Department will hold banks accountable when they knowingly run afoul of applicable legal requirements.”

The agreement resolves allegations linked to SunTrust's handling of trust accounts managed for The Halpern Group (Halpern), a New Jersey company operating as a "structured settlement facilitator." Halpern directed individuals who received personal injury settlements to establish trusts at SunTrust intended for preserving their recoveries against imprudent spending.

Starting around December 2011, SunTrust administered trust accounts known as the "Doe Run Accounts," referred by Halpern following lead poisoning settlements near Herculaneum, Missouri. Beneficiaries included individuals with health and cognitive issues from lead exposure. The U.S. alleges that instead of safeguarding these funds against unwise disbursements, Halpern requested and SunTrust often approved inappropriate disbursements benefiting third parties such as relatives—actions claimed to violate SunTrust's fiduciary responsibilities.

This outcome resulted from collaboration between the Civil Division’s Commercial Litigation Branch (Fraud Section) and the United States Attorney’s Office for the Northern District of Georgia. Key personnel involved were Senior Trial Counsel David W. Tyler from the Commercial Litigation Branch; Assistant U.S. Attorney Austin M. Hall; and former Assistant U.S. Attorney Armen Adzhemyan from Georgia's Northern District.

The resolved claims remain allegations without any established liability.

For additional information, contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmail@usdoj.gov or (404) 581-6016. More details are available on http://www.justice.gov/usao-ndga.