GenSpring Family Offices are being investigated by Sonn Law Group as to whether these SunTrust-affiliated financial advisors failed to adequately diversify the portfolios of “ultra-high net worth” investors, said Jeffrey Sonn, Esq., a nationally known securities attorney. One of the allegations in a FINRA arbitration is that the GenSpring Family Offices, which is partly owned by SunTrust, represented that certain proprietary hedge funds perform like bonds, according to an arbitration claim filed by a customer of GenSpring.
Sonn Law Group has significant experience representing high net worth investors in claims involving financial products and plans that purport to provide a market return with a bond-like risk. Sonn Law Group won two verdicts of over $1 million dollars in 2010, for high net worth investors who were sold mutual funds that were alleged to have a bond-like risk but were revealed to have significant structured finance risk, which caused the funds to lose 90% of their value.
The allegations against GenSpring are fairly straightforward; investors were allegedly told that the firm would use certain hedge funds for the bond allocation of the portfolio. The hedge funds included the AMA Multistrategy Fund, LP, which was promoted by GenSpring and SunTrust Bank, which is thought to be a proprietary fund of GenSpring. Allegedly, the fund was offered and sold as a lower risk fund, but now it appears investors have suffered losses in excess of the promised downside risk.
Sonn Law Group has seven attorneys in offices in Miami and represent investors nationwide in all types of investment disputes, including hedge funds, mutual funds, structured notes, structured finance, reverse convertible notes, principal protected notes, REITs, Ponzi schemes, limited partnerships, preferred stocks, and other securities.
Jeffrey Sonn serves as a Director and Secretary of the Public Investors Arbitration Bar Association, the national bar association for attorneys who represent investors in securities arbitration. Mr. Sonn was a contributing legal contributor for the CNBC series on “On the Money” and appeared as an expert in Wall Street fraud cases in the documentary “Bernard Madoff and the Fifty Billion Dollar Heist,” as well as an episode of American Greed on the billion dollar Ponzi scheme organized by Scott Rothstein.
For more information Contact:
Jeffrey Sonn, Esq.