FINRA Orders Broker-Dealer To Pay $345K in Restitution For Failing To Supervise The Selling of This High-Risk Junk Bond

FINRA ordered brokerage firm WestPark Capital to pay $345,000 in restitution and a $175,000 fine for failing to reasonably supervise the sale of high-risk GWG L Bonds to customers. Following GWG Holdings’ bankruptcy and the exposure of a $1.6 billion Ponzi scheme, law firm Shepherd Smith Edwards and Kantas is encouraging affected investors to file FINRA arbitration claims to recover their losses.

If you are a GWG L Bond investor who suffered losses while working with a WestPark Capital broker, you should contact Shepherd Smith Edwards and Kantas (investorlawyers.com) today. Already, we have filed a six-figure investment loss recovery claim against this brokerage firm on behalf of a Florida senior.

Why Was WestPark Capital Sanctioned Over Its Sale of GWG L Bonds?

• Last month, the Financial Industry Regulatory Authority (FINRA) ordered the Los Angeles-based broker-dealer to pay $345,000 to clients and a $175,000 fine after finding that it failed to reasonably supervise what it contends were allegedly unsuitable investment recommendations of GWG Holdings to 10 customers.
• The self-regulatory organization (SRO) also found that this violated WestPark Capital’s Regulation Best Interest (Reg BI) care obligations.

The brokerage firm agreed to FINRA’s findings but did not deny or admit to them.

Were GWG Holdings Illiquid Junk Bonds Part of A Mass Ponzi Scheme?

• GWG was prosecuted for running a more than $1.6B Ponzi scam.
• The investment fraud collapsed after the alternative asset firm filed for Chapter 11 Bankruptcy protection in 2022.
• Dozens of regional brokerage firms sold GWG L Bonds and earned high commissions and fees in the process.
• Thousands of GWG investors—primarily retail investors and seniors—are scrambling to recoup their money.
• Earlier this year, a jury convicted ex-GWG Holdings chairman Brad Heppner of securities fraud, wire fraud, and other criminal charges. Prosecutors contend he fraudulently removed over $150M from GWG to a shell company he operated.

I’m A GWG Bond Investor. How Can I Recoup My Investor Losses?

• Even with criminal and regulatory charges being brought and pursued, if you are an L Bond investor, your best chance for full financial recovery of your losses is to file your own FINRA arbitration claim for damages.
• Brokerage firms may not have been directly involved in the GWG investment scam, but they had a duty to conduct the proper due diligence into this alternative investment and make sure it was safe and suitable for customers.
• Unfortunately, there appear to be many brokerage firms that ignored customers’ best interests while prioritizing the money they could make, including up to 8% in upfront commissions.

Why Do I Need To Hire FINRA Lawyers To File a Claim Over My GWG L Bond Losses?

• Suing your broker is not the kind of legal case you want to make without seasoned securities attorneys by your side.
• Brokerage firms are known to deny wrongdoing in investment loss recovery claims because they don’t want to be held liable.
• A customer who has a dispute with their broker will need to file their claim in FINRA arbitration.

Skilled FINRA Law Firm Representing GWG Investors Against Brokerage Firms

Shepherd Smith Edwards and Kantas has filed dozens of FINRA arbitration claims against many of the broker-dealers that profited while unsuitably recommending these junk bonds to customers. We understand why these investments failed and the role that financial advisors played in causing investors to sustain significant losses.

Talk To One of Our GWG L Bond Lawyers Today

Call (800) 259-9010 or contact us online to schedule your free case consultation.