Trustee's Failure to Diversify Leads to Breach of Fiduciary Duty
A trustee’s risky, concentrated investments spark questions of fiduciary breach in this trust mismanagement case.
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Case Overview
This case centers around an investor whose trustee made significant investments in a single security over an extended period, resulting in substantial financial losses. The trustee's failure to diversify the investment portfolio is at the heart of the allegations, as they also chose to invest in their own proprietary funds. This behavior raises serious concerns regarding the breach of fiduciary duty, which is paramount to the trust's financial health and the investor's interests. The plaintiff is seeking an expert with expertise in portfolio management of trusts and estates to evaluate the case and provide insights into the breach of fiduciary duty and the subsequent damages incurred.
Questions to the Securities expert and their responses
What information would you need to determine if there was a breach of fiduciary duty?
A review of all annual trust account statements for the years of the alleged breach, internal and external communications regarding the account, annual regulatory reviews, and internal securities research regarding concentrated positions.
What information would you need to determine if there was a breach of fiduciary duty?
A review of all annual trust account statements for the years of the alleged breach, internal and external communications regarding the account, annual regulatory reviews, and internal securities research regarding concentrated positions.
About the expert
This expert has over 30 years of experience in the financial services industry. He has previously held the FINRA Series 65, 7, and 63 licenses. He began his career training with a national brokerage firm in Washington, D.C. He later spent a decade in senior leadership roles at a major private bank, including serving as a regional CEO and president. He is currently active as an Associate Member of the American Bar Association and a member of the Securities Expert Roundtable. Most recently, he held an executive role at a high-net-worth peer advisory organization before establishing his own consulting and litigation advisory firm based in Florida, where he now serves as founder and principal.
E-010070
Specialties:
About the author
Celia Guo
Celia Guo is the Vice President of Multidisciplinary Research at Expert Institute. With a background rooted in public policy and criminal justice, Celia brings a wealth of experience in data-driven legal analysis. Prior to joining The Expert Institute, she conducted research for the Orange County District Attorney’s Office, focusing on drug diversion cases, and collaborated with the American Civil Liberties Union to analyze officer-involved shootings in Fresno, California. Her policy advocacy work also includes lobbying with the Drug Policy Alliance for the RISE Act, aimed at reforming sentencing enhancements for minor drug offenses.
Celia holds a B.A. in Political Science from Loyola Marymount University and an M.P.P. from the University of Southern California. She combines her policy expertise with a passion for justice to lead a dynamic research team that supports litigation strategy across a wide range of practice areas.
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