Rene Castro Allegedly Sold Unsuitable GWG L Bonds to Investors
The White Law Group is currently investigating potential FINRA arbitration lawsuits involving Rene Castro ( CRD#: 2559410), a financial advisor with Great Point Capital in Chicago, Illinois.
Customer Complaints: Rene Castro
According to Rene Castro’s broker report, he reportedly has 8 customer complaints on his record. Several complaints were reportedly in connection with the sale of the high risk GWG L bonds from GWG Capital. Three of the complaints were settled, one was denied and three are still reportedly pending. Allegations include:
- Sale of unsuitable investments
- Sale of GWG L Bonds, claims for lack of suitability, negligence, breach of fiduciary duty, contract, various California statutes.
- Unsuitable variable annuities and promissory note sales
- Unsuitable “fixed insurance product”
What Investors Can Do
If you invested with Rene Castro or Great Point Capital and suffered investment losses, you may have legal options. FINRA provides a dispute resolution forum that allows investors to pursue claims against financial advisors and brokerage firms for misconduct.
Brokerage Firms’ Duty to Supervise
Brokerage firms have a legal obligation to adequately supervise their advisors. Failure to detect or prevent advisor misconduct—such as fraud or unsuitable recommendations—can make the firm liable for losses through FINRA arbitration.
FINRA Arbitration vs. Class Action
Many investors wonder if a class action lawsuit is better than pursuing an individual FINRA arbitration claim. Generally:
- If your losses exceed $100,000, individual arbitration may be more appropriate.
- Class actions are typically better suited for smaller, uniform claims.
Contact The White Law Group
If you lost money investing with Rene Castro and Great Point Capital or believe you may have been a victim of misconduct, contact The White Law Group at (888) 637-5510 for a free consultation. Our firm handles securities fraud cases in all 50 states, including Illinois and California.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to helping investors in claims in all 50 states against their financial professional or brokerage firm.
FAQ
1. What is FINRA arbitration and how does it work?
FINRA arbitration is a legal process that allows investors to resolve disputes with financial advisors or brokerage firms without going to court. A panel of neutral arbitrators hears evidence and issues a binding decision.
2. What is Regulation Best Interest (Reg BI)?
Regulation Best Interest (Reg BI) is a rule adopted by the Securities and Exchange Commission (SEC) that requires brokers to act in the best interest of their retail customers when making investment recommendations. Effective as of June 30, 2020, Reg BI obligates financial advisors to disclose conflicts of interest, exercise reasonable diligence when recommending investments, and avoid placing their own financial interests ahead of their clients’. Violations of Reg BI can serve as grounds for FINRA arbitration claims.
3. How much does it cost to file a FINRA claim?
Most securities attorneys, including The White Law Group, work on a contingency fee basis, meaning there are no upfront legal fees. You only pay if you recover compensation.
