Truist Bank has agreed to pay $9,125,000 to the United States to settle allegations related to SunTrust Bank's administration of certain trust accounts. The claims fall under the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) and involve actions by SunTrust between December 2011 and December 2015. Truist Bank emerged from the merger of SunTrust with Branch Banking and Trust Company in December 2019.
Principal Deputy Assistant Attorney General Brian M. Boynton commented on the settlement, emphasizing that "our federally insured financial institutions must act in accordance with the law, including meeting their obligations to beneficiaries when they serve as trustees." He added that this settlement demonstrates that banks will be held accountable for legal violations.
The case involves SunTrust's management of trust accounts linked to The Halpern Group, a New Jersey company serving as a structured settlement facilitator. These accounts were intended for individuals who received settlements from personal injury litigation, helping them preserve their recoveries by preventing unwise disbursements. However, it is alleged that SunTrust approved imprudent disbursements requested by Halpern, which did not serve the beneficiaries' best interests.
U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia stated, “Banks occupy a special place of trust in our society,” noting that this settlement shows accountability when banks breach this trust.
The resolution was achieved through collaboration among various divisions within the Justice Department, including Senior Trial Counsel David W. Tyler and Assistant U.S. Attorney Austin M. Hall.
It is important to note that these resolved claims are only allegations without any determination of liability.