New York Couple Sues Moloney Securities and Five Brokers Over GWG L Bond Losses.
Our GWG Holdings Recovery Lawyers Are Representing These Claimants in FINRA Arbitration
Two New York retirees are suing Moloney Securities for losses they sustained in their GWG L Bonds. Shepherd Smith Edwards and Kantas (investorlawyers.com) is representing this couple in their FINRA lawsuit. They are seeking up to $500K in damages.
This is an investment loss recovery claim involving a financial advisor who appears to have been more concerned with earning commissions rather than meeting the fiduciary duty owed to clients. Moloney Securities also seems to have been beyond complacent in its supervision of its registered representatives and the financial products it chose to solicit.
These investors wanted to avoid undue risk. Yet the respondents, which include five Moloney securities brokers, allegedly unsuitably overconcentrated the retirees’ assets in GWG L Bonds. These were high-risk, illiquid investments and likely part of an alleged more than $1.6B Ponzi scam. Meanwhile, Moloney Securities misrepresented the investments as safe and stable.
Ex-Moloney Securities financial advisor Mathew Vance, the couple’s then-broker of record, is not a respondent in this case. He worked six years in the brokerage industry.
Our clients are novice investors who should never have been marketed and sold these non-public alternative investments. Not only that, but we believe that the respondents provided patently false information to these seniors to get them to invest in L Bonds. A significant portion of the couple’s assets ended up overconcentrated in GWG. They were repeatedly assured that all was well, even after payments from GWG Holdings stopped.
The alternative asset firm filed for Chapter 11 Bankruptcy in 2022. These New York retirees were told that the bankruptcy proceedings would cover their assets. In their GWG L Bond lawsuit, our clients are alleging negligence, gross negligence, breach of fiduciary duty, broker fraud, misrepresentations and omissions, overconcentration, unsuitability, and more.
Our L Bond loss recovery lawyers are sorry to say that it is unlikely that the thousands of investors who sustained losses in these high-risk junk bonds will recover much, if anything at all, from the liquidation proceedings.
This is why it is so important that if you are a GWG Holdings investor, you explore your legal options and determine whether you have grounds for a FINRA lawsuit against your broker-dealer. More than 40 regional brokerage firms unsuitably recommended and sold GWG L bonds to customers.
Emerson Equity was the managing broker-dealer for the L Bonds. The firm was allowed to solicit other FINRA members to sell these junk bonds on its behalf for a share of the commissions. The commission paid to Emerson and Moloney went as high as 8%. Because GWG scaled commissions according to maturity date, Moloney Securities and its brokers had a vested interest in selling the longest maturity dates offered to maximize its revenue.
Why Contact Our GWG Holdings Recovery Lawyers?
This is not the kind of investor lawsuit that you should pursue without an experienced securities law firm by your side. We are representing many L Bond investors against brokerage firms. If we decide to work together, you will become part of our unit of GWG arbitration claims, with all of our securities attorneys fighting for you.
More than 90% of our clients have received full or partial financial recovery. Call our L Bond Fraud Attorneys at (800) 259-9010 or fill out this online form to schedule your free, initial case consultation.