Written by The White Law Group• January 27, 2023• 6:39 pm• Blog, Current Investigations

Ausdal Financial Partners Complaints

Ausdal Financial Partners Lawsuits

The White Law Group continues to investigate potential claims involving Ausdal Financial Partners complaints and the liability the firm may have for improper investment recommendations to its clients. If you have suffered losses with registered investment advisor and broker-dealer Ausdal Financial Partners, our securities attorneys may be able to help you.

Broker Misconduct

In 2019, the SEC reportedly charged Former Ausdal Financial Partners financial advisor Richard “Guy” Duncan with fraud in connection with selling over $300,000 in a purported bad Turkish investment

The regulator reportedly charged Duncan with fraud, claiming two banks warned the advisor that the Turkish investment was probably a scam. He allegedly ignored the warnings, failing to disclose the risks to clients, while purportedly promising 100% return on investment on the product, according to the SEC. Duncan reportedly has two customer complaints filed against him. In June 2022, the SEC reportedly found that Duncan breached his fiduciary duty to his clients by (a) failing to disclose material facts, including his conflict of interest in the Turkish investment and (b) concealing unambiguous scam warnings from two banks regarding the investment. Further Duncan allegedly failed to investigate the legitimacy of the Turkish investment and failed to provide investment advice in his clients’ best interest.

Ausdal Financial Partners Lawsuits

The White Law Group has previously represented investors with Ausdal Financial Partners complaints.

In July 2022, the firm filed a FINRA arbitration claim against Ausdal Financial on behalf of four Illinois families, alleging claims for violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision.

The claim alleges that Ausdal Financial Partners 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 of last year.

Ausdal Financial Partners allegedly failed to perform the necessary due diligence on these investments prior to recommending them to these investors.

FINRA Claims to Recover Losses

All broker-dealers have a responsibility to adequately supervise their advisors. They must ensure they have procedures and systems in place to detect broker misconduct. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

When brokers violate securities laws, such as making unsuitable investments, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.

The Financial Industry Regulatory Authority (FINRA) operates the largest dispute resolution forum in the securities industry. In fact, FINRA Dispute Resolution is the forum for almost all disputes between investors, brokerage firms and individual brokers. This is mainly because the vast majority of brokerage firms have mandatory arbitration clauses in their account agreements that require investors to file their disputes through FINRA.

If you have suffered losses with Ausdal Financial Partners and Company, the securities attorneys at the White Law Group may be able to help you. For a free consultation, please call the offices at 888-637-5510.

The foregoing information, which is all publicly available, is being provided by The White Law Group. The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.

For more information on The White Law Group, visit whitesecuritieslaw.com.