GWG Investor In Florida Sues WestPark Capital for Up to $500K
Broker Scot Barringer Is Also a Respondent in Six-Figure L Bond Loss Recovery Lawsuit
Shepherd Smith Edwards and Kantas GWG L Bond Lawyers (investorlawyers.com) are representing a Florida senior over portfolio losses she sustained in GWG L Bonds. The respondents in the FINRA arbitration claim are broker-dealer WestPark Capital and its former financial advisor Scot Barringer.
The claimant is seeking up to $500K in damages. She first encountered Barringer at a retirement planning seminar. Despite making it clear that she did not want to get involved in any risky investments, Barringer allegedly unsuitably recommended GWG Bonds.
Even after GWG Holdings went into bankruptcy, Barringer recommended another two GWG bonds to this investor to replace ones that had matured. Meanwhile, he purportedly continued to reassure our client that these investments, which were now overconcentrating her portfolio, were sound and, also, she would be made whole from the liquidation of the company’s assets. He allegedly misrepresented these L bonds as safe, low-risk, and income-generating.
GWG Holdings is now accused of running a more than $1.6B Ponzi scam. L Bond investors continue to be hard-pressed to recover much, if anything, at all from the bankruptcy proceedings. However, what they can do is go after the broker-dealers and their registered representatives who disregarded the red flags indicating anything was amiss while continuing to promote these alternative investments to customers, likely because of the high commissions and fees these financial advisors could earn.
Now, our client investor is looking at a total loss of principal along with the destabilization of her future financial security. In her L Bond loss recovery claim, she is alleging unsuitability, excessive concentration, failure to supervise, misrepresentations and omissions, negligence, breach of contract, and more.
L Bond Investors Sue WestPark Capital and Other Brokerage Firms
WestPark Capital is a respondent in a number of GWG L Bond lawsuits. In May 2025, Barringer was suspended for three months by the Financial Industry Regulatory Authority (FINRA) for allegedly unsuitable investment recommendations and best interest violations. The Maryland Securities Division also initiated suspension proceedings against him related to unsuitable L Bonds recommendations.
According to Scott Barringer’s CRD, he has worked 39 years in the industry. After leaving WestPark Capital, he went on to become an American Trust Investment Services broker. He has been a registered Chicago Capital Management Advisors investment adviser since 2020.
There are at least six other investor lawsuits disputes involving his former clients that have resulted in settlements. The claimants alleged breach of contract, negligent supervision, negligence, misrepresentations, breach of fiduciary duty, and unsuitability. At least some of these FINRA arbitration cases involve GWG L Bond Losses.
Trusted GWG L Bond Lawyers
Shepherd Smith Edwards and Kantas GWG L Bond Lawyers are representing dozens of GWG investors against many of the brokerage firms that marketed these high-risk junk bonds to them. Many of those who sustained serious losses are seniors and retirees whose financial advisors disregarded their investing profiles and investment goals to involve them in these now suspect alternative investments.
Our GWG L Bond fraud attorneys are highly knowledgeable in what these investments are about and why brokerage firms should be held liable for their customers’ losses. If we decide to work together, you will become part of our unit of GWG fraud lawsuits that is represented by our entire securities firm. We know how to maximize each of our client’s chances for a full financial recovery.
Call (800) 259-9010 or fill out this online contact form to schedule your free, initial case consultation.