As GWG Holdings continues to struggle with bankruptcy and default, investors are left holding the bag on millions of dollars of its failed L bonds. Many of those investors should never have been invested in the risky, illiquid bonds in the first place. Instead, brokers were tempted by high commissions and continued to sell GWG’s risky L Bonds to inexperienced retail customers even after SEC investigations and other warning signs.
Brokers are required by the Financial Industry Regulatory Authority (FINRA) to represent the best interests of their clients. This means they are legally compelled to make recommendations that fit the client’s portfolio and the risk-comfort level of their customer, regardless of fees and commissions they might themselves receive.
When that trust is broken, and brokers recommend products that put their client’s financial welfare at risk, then they can be held accountable.
The Law Office of Jared A. Rose is currently investigating Advanced Financial Solutions, based in Kansas City, MO, for just such allegations. If you are a client of Advanced Financial Solutions and have lost money on GWG L-Bonds, contact us immediately.
Did Your Broker Recommend GWG L-Bonds?
Concerns brought to us by clients of Advanced Financial Solutions and other brokers who sold GWG L Bond include:
Overconcentration – Broker oversaw a portfolio that held over 30% invested in GWG L Bonds. This is far over recommended concentration levels for any one investment, much less a complicated, risky investment such as the L Bonds.
Inappropriate Level of Risk – Broker sold GWG L Bonds to a retired, consumer-level customer, even going as far as advising them to put the assets from the sale of a family home into the high-risk bonds that were very difficult to divest. The broker ignored the fact that the product was far too risky for the portfolio of their client and that the client was too inexperienced to evaluate the risk independently.
Lack of Due Diligence – There were warning signs that the GWG L Bonds were not a stable investment including SEC investigations and corporate drama at the parent holding company. These signs were overlooked, ignored, or simply not investigated by the broker and the bonds continued to be recommended to customers.
If any of these concerns sound familiar, contact us immediately and the Law Office of Jared A. Rose will work with you to determine if you have a claim against your broker for losses suffered on GWG L Bonds.