Ex-Centaurus Financial Broker May Have Unsuitably Sold Risky Junk Bonds to Elderly Investors
Our GWG Holdings L Bond lawyers are looking into claims of L Bond losses by former customers of Mark John Williams, an ex-Centaurus Financial broker. Williams is currently a Kingswood Capital Partners stockbroker and Financial Gravity Family Office Services investment advisor out of Carmel By The Sea, California.
Several of his former customers, including elderly investors and retirees, have complained that he allegedly recommended and sold them GWG L Bonds. These high-yield bonds were too risky, illiquid, and speculative for these investors from the beginning. These contentions appear to be from when he was registered with Centaurus Financial and after with Forta Financial Group.
In April 2022, GWG Holdings, Inc. filed for Chapter 11 bankruptcy. Its L Bonds were sold by about 145 regional broker-dealers, including Centaurus Financial, Inc. Along with the other firms, Centaurus partnered with managing broker-dealer Emerson Equity to market and sell L Bonds to clients for a share of the high commissions and fees.
If you suffered losses from L Bonds sold to you by ex-Centaurus Financial broker Mark Williams, call our California securities attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) at (619) 550-4847.
Already, we’ve brought a claim against Centaurus on behalf of another L Bond investor. You can reach SSEK Law Firm nationwide at (800) 259-9010. GWG L Bonds were sold to investors all over the United States.
Ex-Customers Allege Breach of Fiduciary Duty and Poor Investment Recommendations
According to his BrokerCheck record, Mark Williams has been registered in the industry for 22 years. During this time, he worked at around a dozen firms. Current, pending disclosures include:
- April 2022: This customer contends that from May 2019 through late 2021, Williams breached his fiduciary duty and recommended unsuitable and high-risk investments.
- March 2022: This claimant is accusing Williams of, in November 2019 and December 2020, making a poor recommendation of an investment that was speculative, illiquid, and risky. The investor is requesting $100K in damages.
Other broker-dealers where Mark Williams used to be registered include Forta Financial Group, JP Turner & Company, QA3 Financial Corp., FSC Securities Corporation, Merrill Lynch, Pierce, Fenner & Smith, NCW Advisory Services, and others.
At Least 27,000 GWG L Bond Investors May Have Suffered Significant Losses
GWG Holdings owes about $1.6B to L Bonds investors. It recently disclosed that about 27,000 bondholders invested around $45K in these risky junk bonds. There are likely other investors who invested more.
L Bonds had pooled money from investors to purchase life insurance policies on the secondary market. Policy payouts upon deaths were used to pay back L Bond investors. However, GWG is now accused of, beginning in 2018, no longer investing in life insurance policies and instead investing in The Beneficient Company Group, LP., which GWG Holdings Chairman Brad K. Heppner founded.
A recent class action securities fraud lawsuit accused Heppner of using the L Bond distribution platform to make money. From 2018 to 2020, L Bond sales purportedly increased by 65%. Meanwhile, L Bond investors were not apprised that their money was no longer used to purchase life insurance policies.
Skilled GWG L Bond Investment Law Firm
Throughout the United States, if ex-Centaurus Financial broker Mark Williams or any other financial advisor sold you GWG L Bonds, contact us today and request your free, no-obligation case consultation. Already, we represent investors in Financial Industry Regulatory Authority (FINRA) arbitration against many brokerage firms over customers’ L Bond losses.