Alfred Vanderlaan Suspended for Unsuitable GWG Bond Sales
According to public records on January 22nd, 2025, The Financial Industry Regulatory Authority (FINRA) has reportedly suspended Alfred Vanderlaan (CRD# 1172406) from working as a broker for three months. Vanderlaan is reportedly not currently registered as a broker.
FINRA alleged that Vanderlaan recommended that two retail customers invest in GWG L Bonds, which were speculative, unrated corporate bonds. Vanderlaan’s alleged recommendations to “Customer A” in August 2020 and “Customer B” in December 2020 and February 2021 were reportedly not in the customers’ best interests based on their investment profiles.
Vanderlaan allegedly willfully violated Rule 15/-l(a)(l) under the Securities Exchange Act of 1934 (Reg BI) and violated FINRA Rule 2010.
What are GWG L Bonds?
GWG Holdings, Inc., a publicly traded financial services company, initially purchased life insurance policies on the secondary market, paying premiums and collecting benefits upon the insured’s death. In 2018-2019, GWG shifted its focus to providing liquidity for holders of illiquid investments and alternative assets after transactions with Beneficient Company Group, L.P.
Despite this reorientation, GWG faced persistent net losses and insufficient cash flows. To fund operations, it issued GWG L Bonds—unrated, high-risk, illiquid securities not directly secured by its life insurance portfolio. These bonds were sold to retail investors through broker-dealers, including WestPark, starting in 2016. Offering documents for L Bonds issued in 2017 and 2020 indicated their speculative nature and suitability only for investors with significant financial resources and no need for liquidity.
As we reported in January 2022, GWG defaulted on its L Bond obligations and halted further sales. By April 2022, GWG filed for bankruptcy.
Alfred Vanderlaan – FINRA Broker Check
The FINRA BrokerCheck tool is a free online tool that allows investors to research and verify the background and credentials of financial brokers, brokerage firms, and investment advisors registered with FINRA.
According to his broker report, Alfred Vanderlaan has thirteen customer complaints on his record. He was reportedly registered with the following firms among others:
05/20/2019 – 06/02/2022 WESTPARK CAPITAL, INC. (CRD#:39914) Watertown, SD
08/26/2011 – 04/24/2019 SANDLAPPER SECURITIES, LLC (CRD#:137906) FINRA expelled the firm on 06/30/2020 WATERTOWN, SD
09/16/2005 – 08/18/2011 CAPWEST SECURITIES, INC. (CRD#:30002) FINRA expelled the firm on 12/24/2014 WATERTON, SD
Regulation Best Interest
As of June 30, 2020, broker-dealers and their associated persons must comply with Regulation Best Interest (Reg BI) under the Securities Exchange Act of 1934. Reg BI mandates that brokers, dealers, or their representatives act in the best interest of retail customers when recommending securities transactions, investment strategies, or account types, without prioritizing their own financial interests.
Key obligations under Reg BI include:
- Care Obligation: Brokers must use reasonable diligence, care, and skill to ensure that recommendations align with a customer’s investment profile, considering factors such as age, financial situation, tax status, risk tolerance, and investment goals.
- Recommendations must not expose customers to risks inconsistent with their profiles, such as over-concentrating investments in a single security or category.
Violating Reg BI also constitutes a breach of FINRA Rule 2010, which requires maintaining high standards of commercial honor and equitable trading practices. Firms that fail to supervise their advisors, can be held responsible for investment losses in a Financial Industry Regulatory Authority (FINRA) arbitration claim.
Free Consultation
If you have suffered investment losses with Alfred Vanderlaan and Westpark Capital, the securities attorneys at the White Law Group may be able to help you by filing a FINRA Dispute Resolution claim. Please call (888) 637-5510 for a free consultation.
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The White Law Group, LLC is a national law firm in securities fraud, securities arbitration, investor protection, and securities regulation and compliance. With offices in Chicago, Illinois and Seattle, Washington, the firm is dedicated to assisting investors across all 50 states with claims against their brokerage firms. Since its founding in 2010, The White Law Group has handled over 800 FINRA arbitration cases.
With more than 30 years of experience in securities law, The White Law Group has the knowledge and expertise to help investors recover losses resulting from securities fraud.
Last modified: January 23, 2025
