Linda Wimsatt Allegedly Violated Regulation Best Interest
According to public records, The Financial Industry Regulatory Authority (FINRA) has reportedly suspended financial advisor Linda Wimsatt (CRD#: 1401802) from working in the securities industry. According to FINRA, Wamsatt is not currently registered as a broker.
Wimsatt allegedly recommended that four retail customers invest in GWG L Bonds, which were speculative, unrated corporate bonds, while reportedly affiliated with Westpark Capital. Wimsatt’s alleged recommendations to these customers in 2020 were purportedly unsuitable for the customers based on their investment profiles.
These recommendations were allegedly also not in the customers’ best interests based on their investment profiles.
According to FINRA, Wimsatt reportedly agreed to the sanctions of a four-month suspension from associating with any FINRA member in all capacities; a $10,000 fine; and partial restitution of $20,974.75 plus interest.
GWG L Bonds: Speculative Investment
GWG Holdings, Inc. was a publicly traded financial services company that initially focused on purchasing life insurance policies on the secondary market, maintaining premium payments, and collecting policy benefits upon the insured’s death. Despite shifting its business model In 2018 and 2019, the company struggled with ongoing net losses and insufficient cash flow to sustain operations. To finance its activities, it reportedly issued high-risk, illiquid “L Bonds” to retail investors through broker-dealers like WestPark.
These bonds were not secured by GWG’s life insurance portfolio, were unrated, and targeted individuals with substantial financial resources who could tolerate significant risks. Offering documents from 2017 and 2020 emphasized their speculative nature and unsuitability for those requiring liquidity.
In January 2022, GWG reportedly defaulted on its obligations to L Bond investors and halted sales. By April 2022, the company filed for bankruptcy, leaving many investors at a loss.
Regulation Best Interest
Under the “Regulation Best Interest” standard, broker-dealers are obligated to perform due diligence when evaluating any investment. If your financial advisor fails to perform due diligence on an investment before recommending it to you, they could be held liable for investment losses.
If your advisor unsuitably recommended an investment offering and you lost money, the securities attorneys at The White Law Group may be able to file a complaint for you. You may be able to recover losses by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.
FINRA BrokerCheck – Linda Wimsatt
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 her broker report, Linda Wimsatt reportedly has ten customer complaints filed against her. Allegations include Breach of Fiduciary Duty, Negligence, Negligent Misrepresentation, Breach of Contract, Failure to Supervise, and Violation of Reg BI, among others.
According to her FINRA broker report, Wimsatt was reportedly registered with the following firms during her career, among others.
11/01/2020 – 01/25/2024 AMERICAN TRUST INVESTMENT SERVICES, INC. (CRD#:3001)Carlsbad, CA
11/13/2017 – 10/30/2020 WESTPARK CAPITAL, INC. (CRD#:39914) Carlsbad, CA
09/24/2014 – 11/13/2017 VFG SECURITIES, INC. (CRD#:15121) Carlsbad, CA
10/31/2005 – 09/17/2014 SAGEPOINT FINANCIAL, INC. (CRD#:133763) VISTA, CA
Free Consultation with National Securities Attorneys
If you have suffered investment losses with Linda Wimsatt and WestPark Capital, the securities attorneys at the White Law Group may be able to help you. For a free consultation with a securities attorney, please call (888) 637-5510.
About the White Law Group
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to helping investors in claims in all 50 states against their financial professional or brokerage firm. Since the firm launched in 2010, it has handled over 800 FINRA arbitration cases.
Our firm represents investors in all types of securities related claims, including claims involving stock fraud, broker misrepresentation, churning, unsuitable investments, selling away, and unauthorized trading, among many others.
With over 35 years of securities law experience, The White Law Group has the expertise to help investors to recover their securities fraud losses.
Last modified: November 18, 2024
