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Kathleen Tarr Former Stockbroker at Royal Alliance Associates

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Royal Alliance Associates has several significant arbitration losses and major issues with former California stockbroker Kathleen Tarr. Kathleen Tarr of Royal Alliance Associates is detailed on our Broker Alert blog. Kathleen Tarr, without adequate supervision from Royal Alliance Associates, recommended several groups of retirees to place their pension buy-out money and other funds into variable annuities and nontraded real estate investment trusts (REITs). These recommendations have resulted in significant arbitration awards, exceeding $1,400,000 and another second arbitration award. There are unknown additional customers of Royal Alliance Associates and Kathleen Tarr that have suffered large account losses, from variable annuities and REITs. Unfortunately, despite the two groups of arbitrations where substantial damages have been awarded, Royal Alliance Associates has stuck to the stonewall approach, continuing to deny that it did anything wrong, or even that the retirees had really suffered losses. Royal Alliance Associates has spent untold amounts on lawyers to defend these claims–probably approaching $1,000,000 in legal fees and costs–instead of accepting the truth that the customers have been harmed.

The second large arbitration award against Royal Alliance Associates and Kathleen Tarr resulted in more than $1,400,000 in awards against Royal Alliance Associates. The retirees, who were former employees of AT&T Inc., were encouraged by a former broker, Kathleen Tarr, to take a lump-sum buyout from their employer rather than a lifetime annuity, . The money was then placed into Inland Real Estate, a nontraded real estate investment trust company, and unspecific variable annuities. The wrongs of Royal Alliance Associates included encouraging retirees, who had no other real assets and no income, to take lump sum pension buy-outs. The money from the lump-sum pension buy-out was then put into variable annuities and non-traded REITs in an IRA, which were not suitable. There is no justification for such a high-cost, illiquid financial gamble in an IRA. The retirees did not suffer damages in the investments, but they missed out on earnings if they had been recommended to receive a lifetime annuity, or more reasonable and prudent investments of the lump-sum buy-out. Each customer of the group was essentially invested in the same way, showing that there was no individual attention to suitability.

We have helped many customers in similar group claims, especially with pension-buy outs and similar investment recommendations into variable annuities. Variable annuities provide a large commission to the stockbrokerage firm and the stockbroker, without an immediate deduction from the customer’s accounts. Because variable annuities are such complex financial products, really contracts with insurance companies, their many complex clauses and provisions permits a stockbroker to say many things that may not be completely true. Here, the fact that Royal Alliance Associates has fought so hard, on two arbitration claims, and been held to pay such large amounts of money, shows that there are real issues in these accounts.

It is urgent that is you were an AT&T employee or worker, and a customer of Kathleen Tarr at Royal Alliance Associates, that you contact us to review your losses. Another defense of the firm will be any delay in the customer bringing the claim. We are prepared to immediately help on anyone who had an account with Kathleen Tarr at Royal Alliance Associates.


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