More than a dozen Nebraska residents filed an arbitration claim Thursday against a Florida-based investment broker in hopes of recovering money lost to a defunct Grand Island insurance agency.
John Chapman, an attorney for the 15 residents of Grand Island and Omaha who invested a total of $1.7 million, said the filing alleges that Transamerica Financial Advisors sold fraudulent First Americans Insurance Service securities to the public. Three principals of First Americans are awaiting trial on federal charges that they defrauded more than 250 investors out of $29 million.
“Transamerica must have been asleep at the wheel while its representatives were selling this junk,” Chapman said.
A representative for Transamerica, which is based in St. Petersburg, Fla., didn’t immediately respond to a message left Thursday.
