Written by The White Law Group• June 3, 2022• 2:18 pm• Blog, Securities Fraud Articles

Arete Wealth Management Lawsuit filed involving GWG L Bonds

The White Law Group announces the filing of a FINRA arbitration claim against Arete Wealth Management for investment losses involving high-risk GWG L Bonds and other alternative investments.

The White Law Group submitted a claim to FINRA Dispute Resolution on behalf of a California family, alleging claims for violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision.

The claim further alleges that Arete Wealth Management unsuitably invested its clients in the high-risk GWG Series L Bond, securities sponsored by GWG Holdings, a Dallas-based financial services firm. GWG Holdings, Inc filed for Chapter 11 bankruptcy protection on April 20, 2022 after failing to make $13.6 million in interest payments to bondholders in January. The claim further alleges investment losses in Healthcare Trust Inc and Franklin BSP Lending Corp. (formerly known as BDCA).

The claim seeks damages of $100,000.01 to $200,000.00.

It is alleged that Arete Wealth Management failed to perform the necessary due diligence on these investments prior to recommending them to these particular investors. Broker dealers have a fiduciary duty to adequately disclose the risks involved in an investment before recommending it, and must perform the necessary due diligence to determine whether the investment is suitable for the investor.

FINRA Claim to Recover Financial Losses

FINRA Dispute Resolution is an arbitration venue for investors with claims against their brokerage firm or financial professional. It provides investors with an opportunity to attempt to recoup their investment losses and is an alternative to filing such claims in court.

“We believe there are many more investors who have suffered losses due to unsuitable investment recommendations in GWG L Bonds who don’t realize they have recourse, or may be unaware of any wrongdoing,” said D. Daxton White, managing partner of The White Law Group, a national securities fraud, securities arbitration, investor protection and securities regulatory/compliance law firm with offices in Chicago, Illinois and Seattle, Washington.

“Brokerage firms are required to supervise their advisors to make sure that they are complying with FINRA rules. If it can be determined that the financial advisor’s employers failed to adequately supervise him, these firms can be held responsible for any resulting losses in a FINRA arbitration claim.”

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.