The White Law Group Announces another Lawsuit Involving GWG L Bonds
The White Law Group announces the filing of a FINRA arbitration claim against Center Street Securities, Inc. for investment losses involving high-risk GWG L Bonds and other alternative investments.
The lawsuit, submitted to FINRA Dispute Resolution on behalf of a Delaware family, is alleging claims for violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision.
The claim further alleges that Center Street Securities, Inc. 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.
Further, it is alleged that the firm recommended its clients invest in the following high-risk alternative investments, among others:
E2C ESA Bond I, LLC
I Cap Equity, LLC
Mill Green Opportunity Fund
Priority Income Fund, Inc.
Madison Capital Group Preferred Opportunity Fund
The claim seeks damages of $100,000.01 to $350,000.00.
It is alleged that Center Street Securities, Inc. 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 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.
To learn more about the claim filed by The White Law Group, please contact the firm at 1-888-637-5510. For more information on the White Law Group and its representation of investors in FINRA arbitration claims, visit https://whitesecuritieslaw.com.
To learn more about the firm’s claims involving GWG Holdings Inc please see:
FINRA Lawsuit filed against G.A. Repple & Company involving GWG L Bonds
FINRA Lawsuit filed against Emerson Equity LLC involving $2.5 Million in…
The White Law Group Announces another Lawsuit Involving GWG L…
Tags: E2C ESA Bond I, GWG bankruptcy, GWG Center Street, GWG finra claim, GWG L Bonds lawsuit, I Cap Equity, Madison Capital Group Preferred Opportunity Fund, Mill Green Opportunity Fund, Priority Income Fund Last modified: January 12, 2024
