Campbell Guin client awarded $1.5m in securities lawsuit
After years of ongoing dispute and more than a week in trial, a Jefferson County jury awarded Birmingham financial services company Capital Strategies Group, Inc. over $1.5 million in damages against Pat Trammell, Jr. after finding Trammell liable for fraud and negligence in a securities transaction. Andy Campbell and Cason Kirby of Campbell Guin, LLC represented Capital Strategies in the lawsuit.
The litigation arose after a related lawsuit in Ohio revealed that Trammell had defrauded Capital Strategies into paying over $1 million in commissions generated by a bank-owned life insurance product to Cleveland-based insurance consultant Terrence P. Fergus. Capital Strategies was selected by Regions Financial Corporation to serve as the broker of record on the insurance product, but the jury determined Trammell engaged in a fraudulent scheme to funnel a share of commissions to Fergus, the consultant hired by Regions to oversee the design, purchase, and implementation of the policy. Because of the complexity of the insurance product, it is regulated as a registered security
After six days of trial, the jury deliberated only an hour and fifteen minutes before returning the verdict in favor of Capital Strategies on all its claims against Trammell for fraud and negligence.
“We are pleased that the jury vindicated our client’s rights. Capital Strategies Group was defrauded and deserved to recover its damages,“ said managing partner Andy Campbell.
As reported in the Birmingham Business Journal:
A Birmingham company has been awarded more than $1.5 million in damages in a case focused on commissions to a third-party insurance consultant.
According to court documents, a jury awarded Birmingham financial services company Capital Strategies Group Inc. more than $1.5 million in damages against Pat Trammell Jr. and Capital Strategies Partners Inc. The two companies are not related.
The litigation arose after a related lawsuit in Ohio alleged Trammell had defrauded Capital Strategies Group into paying more than $1 million in commissions to Cleveland-based Terrence P. Fergus, who was hired by Regions Financial Corp. to serve as an insurance consultant to oversee the design, purchase and implementation of a bank-owned life insurance product. Because of the complexity of the insurance product, it is regulated as a registered security.
Fergus referred the bank to Capital Strategies Group and Trammell’s company at the time, Capital Strategies Partners, as brokers of the insurance product.
In court filings, Capital Strategies Group claimed Trammell directed commissions to Fergus under the pretense that Regions had approved it, although the bank had not, causing Capital Strategies Group financial harm.
Trammell said in a statement to the BBJ:
“While I certainly am disappointed in the initial outcome of this particular dispute between myself and Capital Strategies Partners and former partners at Capital Strategies Group, I respect the decision of the court and have full faith in the appellate process. I am confident that, upon further review of the details of this case, the decision will be overturned on appeal. Unfortunately, this case is only one short chapter in a longer story of ongoing litigation and civil disputes borne out of disagreements between two former business partners – including legal actions taken by my firm, Capital Strategies Partners, against Capital Strategies Group. Out of deference to the legal process and other current pending cases Capital Strategies Partners and I have against Capital Strategies Group, I will not discuss additional details at this time.”
Andy Campbell and Cason Kirby of Campbell Guin LLC represented Capital Strategies Group in the lawsuit.
According to the verdict, the jury found in favor of Capital Strategies Group on counts related to fraud, deceit, concealment and negligent misrepresentation.