Leading Broker-Dealer Pitched Regional Broker-Dealers To Sell These Risky Junk Bonds
Securities lawyers at SSEK are investigating Emerson Equity wholesalers that pitched risky junk bonds. According to InvestmentNews, a review of BrokerCheck data suggest several Emerson Equity wholesalers across the US have left the firm since the beginning of 2022. They are the same wholesalers responsible for pitching GWG L Bonds to regional broker-dealers.
Emerson, the managing brokerage firm in selling these risky, life settlement-backed bonds for GWG Holdings, Inc., has partnered with over 140 regional brokerage firms to market and sell L Bonds to investors, including retail customers and retirees.
In April 2022, GWG Holdings owes millions of dollars to its investors and defaults on payments due in February. They filed for Chapter 11 Bankruptcy protection after selling $1.6B of L Bonds. However, according to the alternative asset filings with the Securities and Exchange Commission (SEC), GWG has struggled financially since 2015.
Emerson Equity and other broker-dealers are under scrutiny in the context of these speculative high-yield bonds, whether they unsuitably sold them to customers or if their financial advisors made misrepresentations and omissions when marketing these investments.
Securities lawyers at Shepherd Smith Edwards and Kantas (SSEK) represent L Bond investors in recouping their losses from the brokerage firms that sold them these high-risk illiquid junk bonds.
Visit GWG Holdings, Inc. and GWG Holdings L Bonds to learn more.
How Do You Recover Losses in L Bonds?
Emerson Equity Brokers/GWG L Bond Wholesalers Who Left The Firm in 2022:
A 2020 marketing document called “GWG: Liquidity for Life Changes” names the Emerson Equity wholesalers of L Bonds.
- Merriah Harkins, formerly the head of GWG Bond wholesalers, is now a Ben Securities broker, as is Matthew Paine.
- Raymond DesRosiers is now a WealthForge Securities broker in Virginia.
- Bron Urbanick is now a Preferred Capital Securities financial advisor.
- Theo Halbardier and Benjamin Hilgers are now Ashford Securities registered representatives.
- Tyler Ingram is with International Assets Advisory.
- Gregory Falzone is with Pacific Oak Capital Markets.
Michael Vickman, Ben Dillon, Dylan White, and Edward Breen are still Emerson Equity brokers. Reginald Cabral, Blake Zegarelli, Scott Blackman, and Steven Reed are no longer registered representatives.
SSEK Law Firm has been investigating Emerson Equity and its brokers over investors’ GWG L Bond losses for some time. Our probe includes Emerson Equity brokers that directly sold L Bonds to investors. This includes Tony Barouti of Barouti Financial in Los Angeles. He may have allegedly targeted Iranian-American customers for L Bond sales. Barouti is involved in several customer disputes that were filed in 2022.
Were Brokerage Firms Motivated to Sell L Bonds Because of High Commissions?
Earlier this year, in its annual audited financial statement with the SEC, Emerson Equity reported issues involving an unnamed offering that could lead to financial harm for the firm. The broker-dealer had signed on as GWG Holdings’ soliciting dealer for L Bonds in 2020.
Part of the agreement included engaging in efforts to solicit around $2B of L Bonds in a public offering of approximately 2 million units. The firm and the regional broker-dealers it partnered with shared the commissions and fees.
According to reports, the broker-dealers that sold GWG L Bonds earned 5% in commissions for the sales and 8% of the total proceeds of L Bond sales. Meanwhile, L Bonds investors are fighting to recoup their investment losses.
Skilled GWG Holdings L Bond Lawyers
Throughout The United States, our L Bond attorneys and securities lawyers represent investors in their Financial Industry Regulatory Authority (FINRA) arbitration claims. SSEK Law Firm is a seasoned securities law firm that has recovered millions of dollars on behalf of thousands of clients. Call (800) 259-9010 today.