Arete Wealth Management: Complaints, Lawsuit & Regulatory Actions
The White Law Group reviews the regulatory history and customer complaints involving Arete Wealth Management, LLC (CRD #44856 / SEC #8-50854), a dual-registered broker-dealer and investment advisory firm headquartered in Chicago, Illinois. Investors who suffered losses may be eligible to recover damages through FINRA arbitration.
Arete Wealth Management employs roughly 320 registered representatives and does business under the names Arete Wealth Management, LLC, Keystone Securities, LLC, and Keystone Investment Advisors, LLC. According to FINRA BrokerCheck, the firm currently has six disclosure events on record: two regulatory matters, one pending civil case (the SEC’s 2025 lawsuit described below), and three arbitration awards against the firm.
Update: SEC Lawsuit Remains Pending; New $280,000 FINRA Arbitration Award (2025-2026)
The SEC’s civil lawsuit against Arete Wealth Management, Arete Wealth Advisors, and three of its representatives remains pending in the U.S. District Court for the Northern District of Illinois as of 2026, with no comprehensive settlement announced for the firm or the individual defendants. The SEC alleges that the firm’s general counsel and chief compliance officer, UnBo “Bob” Chung, helped the representatives obtain liability releases from Zona Energy investors in exchange for payments typically ranging from $1 to $5,000, far less than what those investors had put into Zona, and that the releases misleadingly omitted that the representatives had received discounted Zona shares in return for raising money from customers. The SEC also alleges the firm failed to conduct required annual compliance reviews for nearly four years after the Commission had already warned Chung about the deficiency.
Separately, on August 11, 2025, a FINRA arbitration panel ordered Arete Wealth Management to pay $280,000 to a customer who had sought $700,000 in damages tied to the firm’s sale of GWG L Bonds (FINRA Case No. 22-01257). This was the second time in recent years that an arbitration panel has found Arete liable in connection with GWG L Bond sales.
SEC Fraud Charges Against Arete and Affiliates
On January 17, 2025, the SEC filed a lawsuit against Arete Wealth Management LLC, Arete Wealth Advisors LLC, and representatives Joey Miller, Jeff Larson, and Randy Larson, alleging fraud in connection with the unapproved sale of more than $8.5 million of Zona Energy Inc. shares to Arete customers and clients, a practice known as “selling away” because it occurs outside a firm’s compliance oversight.
According to the SEC, Miller and Jeff Larson agreed to raise money for Zona from investors in exchange for discounted Zona shares, later joined by Randy Larson, and did not disclose this arrangement to their customers. To conceal the conduct, the SEC alleges the representatives directed customers to email them outside their Arete accounts. The complaint states that even after Chung and the representatives received an anonymous tip that Zona’s control person was a convicted felon previously imprisoned for conspiracy to commit securities fraud, some customers who had already invested in Zona put in additional money, allegedly with the representatives’ assistance.
Zona Energy’s control person and several associates were separately charged criminally by the U.S. Attorney’s Office for the Eastern District of New York and civilly by the SEC over allegations that Zona was a sham company and that its insiders misappropriated investor funds for personal expenses. Michael Sealy, who the SEC alleged acted as an unregistered broker soliciting investors for Zona and helped facilitate the representatives’ selling away, settled with the SEC without admitting or denying the findings; he consented to a cease-and-desist order, a $200,000 civil penalty, and a 12-month ban from participating in penny stock offerings. The SEC alleges the broader Zona scheme raised more than $16 million from over 300 investors.
Investor Settlements and Arbitration Cases
Arete Wealth disclosed more than $1.1 million in investor settlements during the first quarter of 2024, according to Investment News (April 15, 2024), and received nearly $987,000 in insurance reimbursements under its errors and omissions policy during that period.
Much of the firm’s litigation has stemmed from terminated advisors and its 2021 acquisition of Center Street Securities, whose representatives were significant sellers of GWG Holdings bonds that became worthless following GWG’s 2022 bankruptcy. According to trade press reports, Arete separately settled a dispute connected to former managing partner Logan Cox for $850,000 in March 2025, before Cox’s April 2025 resignation from the firm amid a compliance investigation (see Broker Misconduct section below).
Complaints Related to GWG L Bonds
The White Law Group has represented investors against Arete Wealth Management for its sale of GWG L Bonds.
In June 2022, a California family filed a FINRA arbitration claim alleging fraud, breach of fiduciary duty, and negligence after suffering losses tied to GWG L Bonds, Healthcare Trust Inc., and Franklin BSP Lending Corp. The case sought damages between $100,000 and $200,000. That same month, a second claim was filed against Arete Wealth for GWG L Bond losses, seeking damages between $50,000 and $100,000; FINRA records show an arbitration panel ultimately awarded $75,000.01 against the firm on that claim in February 2024.
More recently, a $1,000,000 FINRA arbitration claim (Case No. 25-00840) was filed on behalf of a 90-year-old investor who alleges representative Brittani Schaefer recommended unsuitable and illiquid alternative investments, including GWG L Bonds, while misrepresenting them as suitable, income-producing investments.
Nationally, GWG L Bond investors continue to face steep losses: as of an April 2026 status report, the bankruptcy Wind Down Trust’s recovery for bondholders is estimated at just 3.78%, according to Iorio Law. Investors who proceed to a final FINRA arbitration hearing over GWG L Bond sales have prevailed in roughly 90% of cases nationally.
GPB Capital Lawsuits Involving Arete
In January 2021, an arbitration panel awarded a former Arete customer and his trust $515,061.98 in connection with GPB Capital Holdings private placements (FINRA Case No. 19-01143), tied to allegations of negligence, negligent supervision, and misrepresentation. GPB Capital raised roughly $1.8 billion from investors beginning in 2013, stopped paying investor distributions in 2018, and has been accused of operating a Ponzi-like scheme; the fund remains under receivership. Arete investors alleged the firm recommended risky, illiquid, high-commission GPB Automotive Portfolio investments without adequate due diligence.
Broker Misconduct and Disciplinary History
Jonathan Greenfield – Barred Broker
FINRA barred former Arete representative Jonathan Jay Greenfield (CRD #2591266) in 2016. His BrokerCheck record shows 20 regulatory events, including 16 customer complaints and criminal charges related to wire fraud. Greenfield was accused of making material misrepresentations and omissions when selling renewable secured debentures.
Logan Cox – Resigned Amid Compliance Investigation (2025)
Logan Cox, a former managing partner registered with Arete Wealth Management from 2020 until his resignation on April 1, 2025, left the firm while it was investigating alleged violations of securities rules and firm procedures, including allegedly advocating that clients obtain lines of credit to invest in securities and allegedly misrepresenting to compliance the circumstances surrounding a client’s line of credit. The Texas State Securities Board separately alleged that Cox violated Regulation Best Interest by failing to properly evaluate the costs of investments he recommended. Cox is now registered with Cabin Securities, Inc.
Walter Nelson – Terminated for Similar Conduct (2025)
Walter Vincent Nelson was terminated from Arete Wealth Management in 2025 amid a similar investigation into allegedly advocating that clients obtain lines of credit to fund securities purchases; according to trade press reports, Nelson allegedly gave shifting explanations about how many clients had used the strategy and left the firm shortly before a scheduled compliance interview. A customer dispute filed in September 2025 remains pending, seeking $100,000 in damages related to alternative investments. Nelson is now registered with Cabin Securities, Inc. and Cabin Advisors, LLC.
Brittani Schaefer – Pending $1 Million Claim (2025)
Brittani Corren Schaefer, a registered representative with Arete Wealth Management, is named in a pending $1,000,000 FINRA arbitration claim (Case No. 25-00840) alleging unsuitable recommendations of illiquid alternative investments, including GWG L Bonds, to a 90-year-old client. According to trade press reports, Schaefer was also the subject of an earlier customer complaint alleging unsuitable investment recommendations, which reportedly settled for approximately $75,000 in early 2024.
FINRA Sanctions Against Arete
In 2012, FINRA censured and fined Arete Wealth $25,000 for inadequate due diligence on a private offering. The regulator found that the firm relied too heavily on issuer representations within a private placement memorandum without sufficient independent verification. Further investigation revealed misrepresented educational credentials, false involvement by legal and accounting firms, and allegations of fraud by the fund’s owners. A separate, older regulatory matter from 2000 involved a $25,000 fine over underwriting and escrow-related violations.
Supervision Duties of Brokerage Firms
Broker-dealers such as Arete Wealth Management are required by law and regulation to properly supervise their advisors. FINRA and SEC rules mandate that firms monitor for misconduct and red flags. Failure to do so can make the firm directly liable for customer losses.
Investor Recovery Options
Investors harmed by misconduct at Arete Wealth may have two main recovery paths:
- FINRA Arbitration – more common for individual investors with claims exceeding $100,000.
- Class Action Lawsuits – typically pursued when multiple investors have smaller claims.
FAQs – Arete Wealth Management
1. What types of investments has Arete Wealth Management sold?
Arete has focused heavily on alternative investments such as private placements, GPB Capital funds, GWG Holdings L Bonds, and unapproved securities like Zona Energy stock, many of which have led to significant investor losses.
2. Is the SEC’s lawsuit against Arete Wealth Management resolved?
No. As of 2026, the SEC’s case remains pending in federal court against Arete Wealth Management, Arete Wealth Advisors, and several individual defendants. One related defendant, Michael Sealy, has settled separately with the SEC.
3. Can I recover my investment losses through FINRA arbitration?
Yes. Investors may be able to pursue FINRA arbitration claims if they suffered losses due to unsuitable recommendations, misrepresentation, selling away, or a lack of supervision by Arete Wealth Management.
4. What is happening with GWG L Bond investor recoveries?
GWG L Bond investors are recovering only a small fraction of their original investment through the bankruptcy Wind Down Trust, estimated at approximately 3.78% as of an April 2026 status report. Many investors have instead pursued FINRA arbitration claims against the brokerage firms that sold them the bonds, with a high success rate nationally.
5. How long do I have to file a claim?
Deadlines vary depending on the type of claim and jurisdiction. It is important to contact a securities attorney as soon as possible to help ensure your rights are preserved.
Speak with a Securities Attorney
The White Law Group has more than 30 years of experience handling securities fraud and investor protection cases nationwide. Since 2010, the firm has handled over 800 FINRA arbitration claims on behalf of investors.
With offices in Chicago, Illinois, and Seattle, Washington, The White Law Group represents investors in all 50 states.
Free Consultation: If you lost money with Arete Wealth Management, call The White Law Group at 888-637-5510 for a free case evaluation.
