FINRA Lawsuit: Emerson Equity LLC involving GWG Bonds

The White Law Group announces the filing of a FINRA Lawsuit against Emerson Equity LLC involving GWG L Bonds 

The White Law Group announces the filing of a FINRA Arbitration claim against Emerson Equity submitted on behalf of a group of California families, alleging violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision.

The claim further alleges that Emerson Equity unsuitably invested its clients in GWG L Bonds, securities sponsored by GWG Holdings, a Dallas-based financial services firm. GWG Holdings, Inc filed for Chapter 11 bankruptcy protection on April 20, 2022. To learn more see:

GWG Holdings Files Chapter 11 Bankruptcy Protection after Missing Interest Payments.

It is alleged that the financial advisor that was involved with the accounts at issue is Tony Barouti (CRD#: 3031995), a registered representative of Emerson Equity, LLC. According to the Financial Industry Regulatory Authority, Barouti has been the broker of record for numerous customer disputes. Allegations include misrepresentation, among others. The FINRA claim seeks damages for more than $1,000,000.

Unsuitable Investments

It is further alleged that Emerson Equity LLC failed to perform the necessary due diligence on GWG L Bonds prior to recommending them to these particular investors.

Before recommending an investment, a broker-dealer has a fiduciary duty to adequately disclose the risks involved in the investment and to perform the necessary due diligence to determine whether the investment is suitable for the investor.

Brokerage firms are required to supervise their advisors to ensure that they are complying with FINRA rules. If it can be determined that the financial advisor violated FINRA rules and the employers failed to adequately supervise him, these firms can be held responsible for any resulting losses in a FINRA arbitration claim.

According to D. Daxton White, managing partner of The White Law Group, “It is unfortunate, but we believe that many more investors have suffered devastating losses involving GWG L Bonds due to the broker-dealer’s failure to supervise and don’t realize they have recovery options.”

FINRA Claims to Recover GWG L Bond Losses

FINRA Dispute Resolution is an arbitration venue for investors with claims against their brokerage firm or financial professional. ?It provides investors with an opportunity to attempt to recoup their investment losses without filing such claims in court.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.

For more information The White Law Group and the lawsuit filed against Emerson Equity LLC, please contact the firm at 1-888-637-5510.