Claimants Allege Unsuitability, Concentration, and Misrepresentation
Investors from Utah and Arizona have filed a Financial Industry Regulatory Authority (FINRA) arbitration claim seeking up to $1M in damages related to their GWG Holdings L Bond losses. The respondents in the case are Centaurus Financial, Benchmark Investments, and financial advisor Gregory John Richards.
Richards, who operates locally as Liberty Wealth Management in Scottsdale, AZ, is also a Benchmark Investments broker. Previously, a Centaurus registered representative from the session of May 2011 until February 2020, GWG Holdings, Inc. filed for Chapter 11 bankruptcy protection in April 2022. By 2020, the alternative asset firm had more than $200M in outstanding debt. In addition to over $1.6B in outstanding L Bonds and other obligations. More than 140 broker-dealers and their brokers earned high commissions from selling these life settlement-backed bonds.
SSEK Law Firm Partner and GWG L Bond Investment Attorney Kirk Smith:
Over the years, our L Bond Investment attorneys have represented investors in FINRA arbitration claims against misrepresentation, unsuitability, and concentration. Our securities lawyers represent other claimants and investors against Centaurus Financial, Benchmark Investments, and broker-dealers. Many customers may have purchased this speculative, illiquid investment through the local firm’s financial advisor affiliation with Liberty Wealth Management.
Suppose you are an investor who suffered losses and was marketed as an unsuitable financial investment. In that case, you can explore your legal options by scheduling your free, no-obligation case consultation call SSEK Law Firm or call Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) at (800) 259-9010 today.
Customers Allegedly Told That Their L Bonds Were Safe and GWG Was Financially Sound
The investors in this FINRA arbitration case include a retired widow, two children, and a friend allegedly recommended for unsuitable, high-risk, illiquid, and speculative junk bonds by Gregory Richards. They contend that even though they were in different stages of life and had differing investing goals and financial needs, Richards marketed and sold them GWG L Bonds, and as a result, they suffered investment losses.
Financial advisors have to make investment recommendations in accordance with the customer’s investment goals, best interest, risk tolerance level, and other criteria. Failure to do so can be grounds for a FINRA arbitration claim in the event of losses.
One of the claimants invested his entire life savings in L Bond. The others contend that it was recommended they invest in L Bonds in concentrations much greater than what was suitable for them. Richards is also accused of misrepresenting these high-yield bonds as safe and GWG as financially sound.
The supervision, or lack thereof, was inexcusable, and it appears that Richards may have been self-supervised with no onsite compliance. Besides, no reasonable supervisor would have approved these recommendations and trades for these particular investors. In their FINRA arbitration claim, they accuse Centaurus, Benchmark Investments, & Liberty Wealth Management’s Gregory J. Richards of negligence.
According to Gregory John Richards’ CRD, he has worked for 21 years in the industry. Other firms where he used to be registered include Questar Capital, USAllianz Securities, and First American National Securities.
Previous customer disputes involving Richards include two from 2008:
- In the first case, an unsuitability claim resulted in a $23K settlement for the investor.
- In the second case, the customer may have suffered from memory issues that could have impacted her knowledge of which securities were sold in her account with her permission. This dispute was settled for over $11K through expert investment attorneys.
Skilled L Bond Investment Attorneys
Pursuing damages for your L Bond losses is not the type of legal action that can be made without seasoned investment attorneys and securities lawyers protecting your legal rights.
Over decades of combined experience, investment attorneys at SSEK Law firm advocate and petition for your best interests while fighting for your financial recovery. SSEK Law Firm has represented thousands of investors against brokerage firms for more than 30 years and has recovered millions of dollars on behalf of investors.
To explore your legal options, contact our GWG L Bond Investment attorneys at (800) 259-9010.