An Iowa man has filed a lawsuit against First American Bank alleging breach of contract.
According to court documents, Greg Deman filed a breach of contract lawsuit against First American Bank, alleging mismanagement of his $45 million from 2005 to 2009. Deman is asking the court for more than $16 million in damages, plus legal fees.
The lawsuit claims decisions made by Joe Heffernan, president of wealth management for First American Bank, caused Deman to lose at least $11.8 million. The lawsuit alleges Heffernan placed money into higher-risk investments than Deman had approved. Deman claims Heffernan persuaded him to borrow on his investments and invest the money during the 2008 market crash and the market recovery of 2009.
According to the lawsuit, Heffernan collected more than $180,000 in fees annually, while providing Deman with“false and misleading” representations about the success of his investments and the risks associated with them.
Attorneys for First American Bank deny the allegations. They have asked Judge Richard Blane II to dismiss the case and order Deman to pay for their defense.
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