Royal Alliance Associate Inc., is one of four subsidiary broker-dealers of AIG Advisor Group. It has been ordered to pay $1.4 million to three separate retired investors due allegations of negligence while supervising sales of nontraded real estate investment, trusts, and variable annuities.

The retirees, who were all reportedly former employees of AT&T Inc., were allegedly advised by Kathleen Tarr, a former broker, that they should take a lump-sum buyout from their employer. This choice would be instead of a lifetime annuity. The money was then placed into Inland Real Estate, a nontraded real estate investment trust company, and unspecific variable annuities.

According to a FINRA BrokerCheck, Ms. Tarr has been involved in over 40 customer disputes and complaints and was discharged from Royal Alliance in 2010.

A FINRA arbitration panel reportedly granted the award at more than $1 million in compensatory damages along with $25,000, per investor, in punitive damages and $241,000 in costs and legal fees.

“We are surprised and disappointed with what we believe is an unreasonable damage award in this case,” this according to a statement made by Royal Alliance, “We are at a loss to understand how the panel reached its conclusion, especially in light of the fact that when residual investment value and past withdrawals are taken into account, these claimants collectively have experienced a gain on the investments that were at issue.”

The foregoing information, which is all publicly available, is being provided by The White Law Group.  The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group, visit www.whitesecuritieslaw.com.