In a significant shakeup at GenSpring Family Offices—the wealth management division of SunTrust—both GenSpring’s CEO Maria Elena Lagomasino and CIO Jean L.P. Brunel have left the firm. Some reports indicate that both left GenSpring to begin focusing on serving overseas clients as a global multifamily office. Whatever the reason, their tenure at GenSpring was not without its problems.
The legal team of Vernon Healy and Dovin Malkin Ficken are currently handling a number of cases against GenSpring. The cases allege that GenSpring misrepresented investment strategies by claiming it was putting investors’ money into funds with bond risk and a minimum downside of exposure. Nevertheless, in the wake of the financial collapse, the portfolio of those investors dropped significantly while the bond market in general increased in value. “GenSpring now has a record of being both reckless and negligent with the funds our clients entrusted to them,” said Chris Vernon, founding partner at Vernon Healy, a firm that handles securities fraud cases. “While we hope that the new executive team will exercise more care going forward, we are making sure our clients, who entrusted very significant funds to GenSpring, receive relief for their damages.”
Vernon Healy and Dovin Malkin Ficken’s promise to keep vigilant is especially significant as GenSpring’s newly named CEO, Thomas M. Carroll, brings with him a wealth of new client opportunities. Carroll is being moved from SunTrust’s Sports and Entertainment Group, an area of business GenSpring has not notably focused on in the past. Carroll’s experience dealing with athletes and entertainers is likely to open doors to managing the money of an entirely new segment of ultra-high net-worth investors for GenSpring.
“Even as we wait for a decision on the case we previously filed, we are investigating whether any of GenSpring’s other high net worth investors, including professional athletes and entertainers that already invested with the firm, have suffered damages as a result of GenSpring’s investment strategy,” said Chris Vernon.