WestPark Capital FINRA Fines, GWG L Bond Violations & Investor Claims
The White Law Group is investigating potential securities claims involving WestPark Capital, Inc. (CRD#: 39914), a Los Angeles-based broker-dealer and investment adviser registered with FINRA since 1996. The firm has accumulated 16 disclosures on its FINRA CRD record, including 14 regulatory events and 2 arbitrations, reflecting a pattern of supervisory failures, private placement violations, AML deficiencies, and unsuitable investment recommendations. If you suffered investment losses involving WestPark Capital, contact our FINRA arbitration attorneys today for a free consultation.
Recent Regulatory Sanctions
June 2026 – $175,000 Fine, $345,073 Restitution for GWG L Bond Sales and Private Placement Due Diligence Failures: FINRA censured and fined WestPark Capital $175,000 and ordered the firm to pay $345,073 in restitution after finding it failed to reasonably supervise recommendations of GWG L Bonds to retail customers and failed to establish an adequate supervisory system for private placement due diligence.
Between March 2019 and February 2021, five WestPark registered representatives recommended GWG L Bonds to 10 retail customers whose investment objectives did not include speculation and who had moderate risk tolerances — four were seniors. As a result, between 11% and 75% of those customers’ liquid net worth became concentrated in alternative investments. FINRA found that WestPark’s written supervisory procedures cited the requirements of Regulation Best Interest and FINRA Rule 2111 but failed to include procedures for conducting reviews to comply with those requirements or to address how supervisors should escalate concerns about investment recommendations.
FINRA also found that since at least December 2018, WestPark failed to establish a supervisory system reasonably designed to ensure adequate due diligence when recommending private placements. The AWC identified failures across four offerings by two issuers, including a development-stage cannabis company with no revenue or operating history and a rent-to-own retailer where the firm’s due diligence consisted solely of reviewing third-party reports commissioned by the issuer itself — with no independent investigation and no follow-up on identified red flags.
Six of the 10 affected customers settled arbitration claims against the firm separately; WestPark is paying restitution to the remaining four under the AWC. FINRA also noted that the willful violation finding subjects WestPark to a statutory disqualification with respect to FINRA membership. The firm signed the AWC without admitting or denying the findings.
GWG Holdings defaulted on its L Bond obligations in January 2022 and filed for bankruptcy in April 2022. The bankruptcy distributed approximately three cents on the dollar to investors. In May 2026, a Manhattan federal jury convicted Bradley Heppner, former chairman of GWG Holdings and Beneficient, on all four counts including securities fraud and wire fraud. For more on GWG L Bond investor losses, see our GWG L Bonds page.
December 2023 – AML Compliance Failures: FINRA found that WestPark failed to develop and implement a reasonably designed anti-money laundering program between November 2018 and March 2021. The firm ignored red flags suggesting issuer representatives were exercising control over customer accounts, assigned AML responsibilities to an inexperienced, unregistered analyst, and allowed that individual to respond to AML inquiries from its clearing firm without adequate oversight. FINRA cited violations of Rules 3310 and 2010.
Past Regulatory Sanctions
November 2021 – $250,000 Fine, Rescission Undertaking: FINRA sanctioned WestPark under AWC No. 2017054381603 after finding the firm made negligent misrepresentations and omissions to investors in multiple private placement offerings and failed to supervise its registered representatives during those offerings. Sanctions included a censure, $250,000 fine, and a requirement to offer rescission to holders of 19 promissory notes issued by WestPark’s parent company.
Improper Interference With FINRA-Ordered Rescission: FINRA subsequently found that WestPark undermined the rescission process required under the 2021 AWC by inducing noteholders to sign “irrevocable” agreements refusing rescission without FINRA’s knowledge, attempting to enforce those agreements, falsely informing FINRA that no rescission requests had been made, and failing to timely pay a noteholder who explicitly requested rescission. FINRA found these actions violated FINRA Rule 2010.
2020 – OATS Reporting and Confirmation Violations: FINRA issued AWC No. 2015047727501 finding that WestPark submitted inaccurate reportable order events to OATS, provided incorrect information on customer confirmations, and failed to establish a supervisory system reasonably designed to ensure compliance. Sanctions included a censure and $30,000 fine.
Long-Standing Supervisory Failures (2016–2021): FINRA found WestPark failed to establish and enforce supervisory systems reasonably designed to comply with Section 5 of the Securities Act of 1933, FINRA suitability rules, markup and markdown requirements, best execution obligations, and self-supervision requirements, in violation of FINRA Rules 3110 and 2010.
WestPark Capital Broker Misconduct
Alfred Vanderlaan (CRD# 1172406): FINRA suspended Vanderlaan for three months after finding he recommended speculative GWG L Bonds to retail customers in 2020 and 2021 in violation of Regulation Best Interest and FINRA Rule 2010.
Kim Ray Kunz (CRD# 718618): Suspended for seven months beginning July 2025 after continuing to associate with his firm and communicate with clients while under a prior suspension, rendering him statutorily disqualified. An earlier 2024 suspension found he recommended speculative, illiquid debt securities in violation of Regulation Best Interest.
Alan Mason (CRD# 1302190): In 2024, Mason consented to a two-month suspension, fines, and disgorgement after FINRA found he violated Reg BI by recommending GWG L Bonds that exceeded 20% of a senior client’s liquid net worth. The Maryland Securities Commissioner subsequently revoked his registration.
Linda Wimsatt (CRD# 1401802): FINRA suspended Wimsatt after finding she recommended speculative GWG L Bonds to multiple retail customers while affiliated with WestPark Capital in violation of Regulation Best Interest.
How to Recover Investment Losses Involving WestPark Capital
Investors who suffered losses involving WestPark Capital or brokers formerly associated with the firm may have options to recover damages through FINRA arbitration, including claims related to unsuitable investment recommendations, misrepresentations and omissions, failure to supervise, violations of Regulation Best Interest, and sales of illiquid or speculative products such as GWG L Bonds or private placements.
Class Action Lawsuit vs. FINRA Arbitration
For most investors with losses exceeding $100,000, individual FINRA arbitration typically results in greater recoveries than joining a class action lawsuit, where per-claimant payouts are often substantially lower.
Contact The White Law Group
The White Law Group is a national securities fraud and investment loss recovery law firm with offices in Chicago and Seattle. Since 2010, the firm has handled over 800 FINRA arbitration cases involving investment fraud, broker misconduct, and unsuitable investment recommendations.
If you have suffered losses involving WestPark Capital, call (888) 637-5510 for a free consultation or contact us online.
Frequently Asked Questions
1. What regulatory sanctions has WestPark Capital faced?
WestPark Capital has been sanctioned multiple times by FINRA for violations involving GWG L Bond sales, private placement misrepresentations, AML program failures, supervisory deficiencies, inaccurate order reporting, and interference with FINRA-mandated rescission offers. The most recent action, a June 2025 AWC, resulted in a $175,000 fine and $345,073 in restitution for GWG L Bond sales and inadequate private placement due diligence.
2. Can I recover losses from WestPark Capital through FINRA arbitration?
Yes. Investors may be able to recover losses through FINRA arbitration if their investments involved unsuitable recommendations, misrepresentations, failures to supervise, or violations of Regulation Best Interest — including claims related to GWG L Bonds, private placements, or other high-risk or illiquid products sold through WestPark Capital.
3. How do I find out if a WestPark Capital broker has complaints or disciplinary history?
You can search for any FINRA-registered broker using FINRA’s BrokerCheck tool at brokercheck.finra.org. Entering a broker’s name or CRD number will show their employment history, disclosures, regulatory actions, and customer complaints.
