WealthForge Securities Lawsuit: FINRA Complaints, Reviews & Investor Concerns
WealthForge Securities, LLC (CRD #152550) a Virginia-based FINRA-registered broker-dealer, has come under scrutiny in recent years due to regulatory sanctions, customer complaints, and lawsuits involving the sale of private placement offerings. If you are an investor who has suffered losses with WealthForge Securities, understanding your recovery options—such as FINRA arbitration vs. class action lawsuits—is essential.
Regulatory Actions Against WealthForge Securities
In March 2021, FINRA sanctioned WealthForge Securities with a $100,000 fine and a formal censure for violations related to misleading communications in connection with private placements. The firm reportedly distributed sales materials that:
- Omitted material risks associated with investments,
- Contained exaggerated or misleading performance claims,
- Failed to disclose conflicts of interest or material differences between the firm and issuers.
FINRA also reportedly found that WealthForge violated Exchange Act Rule 10b-9 by failing to notify investors of extensions in contingency offerings or obtain their written consent to continue the investment—an action that undermined investor protection.
Customer Complaints and Broker Disciplinary Issues –
Multiple brokers affiliated with WealthForge Securities have been involved in investor disputes and regulatory complaints, particularly related to unsuitable investment recommendations in private placements:
- James Raper Jr., Chief Compliance Officer at WealthForge, has been named in customer disputes alleging over $6 million in collective damages tied to misrepresentation, unsuitable investments, and failure to conduct due diligence.
- Stephen Haskell, a former broker, has faced arbitration claims with allegations involving negligence and unsuitable investment advice related to private placements, including one that settled for $50,000.
- Chay Lapin: Previously registered with WealthForge Securities, Lapin reportedly faced an investor complaint in November 2019 concerning the performance of private placement investments. The complaint alleged that the investments were not performing as anticipated and that funds were locked out of the investor’s control. The complaint was denied by the firm.
- Jason Salmon: A former broker at WealthForge Securities, Salmon faced an investor complaint alleging breach of fiduciary duty, failure to conduct reasonable due diligence, failure to make material disclosures, misrepresentations and omissions, breach of contract, and negligence related to private placement investments. The investor sought $999,999 in damages.
- Dwight Kay: Formerly associated with WealthForge Securities, Kay has been the subject of customer complaints between 2010 and 2023, primarily concerning private placement investments. Allegations include failure to conduct reasonable due diligence, misrepresentation, and failure to disclose material facts.
The Risks of Private Placements
Private placement investments can be highly speculative and illiquid, often carrying high commissions, limited transparency, and increased risk of fraud. These investments are typically recommended to high-net-worth or accredited investors, but even qualified investors may not fully understand the risks involved.
Firms like WealthForge are required to conduct reasonable due diligence on all offerings they recommend. When a brokerage fails to adequately investigate the background, viability, and potential red flags of an offering, they may be held liable for resulting investor losses.
FINRA Arbitration vs. Class Action Lawsuits
While some investors may be contacted about participating in a class action lawsuit, it’s important to understand that FINRA arbitration often provides a faster and more individualized path to recovery. Unlike class actions, which involve group claims and shared outcomes, FINRA arbitration allows investors to bring individual claims tailored to their specific losses.
Arbitration typically results in a faster resolution—often within 12 to 18 months—compared to the several years a class action lawsuit may take. Additionally, there’s no need to wait for a class to be certified, and investors retain greater control over the process. In contrast, class actions divide the settlement among all claimants and provide limited involvement for individual participants.
The White Law Group exclusively handles FINRA arbitration cases and has helped hundreds of investors recover losses due to broker misconduct and unsuitable investment recommendations. Most investor disputes against brokerage firms are resolved through FINRA arbitration, which is generally more efficient and tailored to individual losses.
About The White Law Group
The White Law Group is a national securities arbitration law firm dedicated to representing investors in claims against brokerage firms like WealthForge Securities. With offices in Chicago, Illinois and Seattle, Washington, our attorneys have recovered millions of dollars for investors through FINRA arbitration.
If you believe you were misled into investing in unsuitable private placements or other alternative investments by WealthForge or its representatives, we can help you explore your legal options.
Call to Action
Free Case Evaluation:
To speak with a securities attorney about a potential WealthForge Securities lawsuit, please call 888-637-5510 or visit our website at www.whitesecuritieslaw.com.
Frequently Asked Questions – WealthForge
- Can I sue WealthForge Securities to recover my investment losses?
Most cases against brokerage firms like WealthForge are handled through FINRA arbitration, a private dispute resolution forum for securities disputes. You may be able to recover losses if your broker failed to conduct due diligence, made unsuitable recommendations, or misrepresented an investment. - What are the risks of private placement investments?
Private placements are typically high-risk, illiquid investments that lack the same level of transparency and regulatory scrutiny as publicly traded securities. They may not be suitable for conservative investors or those seeking liquidity. - How do I know if I have a case?
If you experienced significant investment losses and believe your financial advisor misled you, failed to disclose risks, or breached their fiduciary duty, you may have a claim. A securities attorney can review your account and help determine if misconduct occurred.
Last modified: June 13, 2025
