Claimants File FINRA Arbitration Claim Against Centaurus Financial
A Florida couple who suffered losses in GWG Holdings L bonds has filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against Centaurus Financial. In the claim, they are seeking up to six figures in damages for their losses. The investors are retirees and worked with Centaurus broker Donna Maria Seymour, who presents herself as part of IngramFinancial Group in Winter Haven, FL.
The claimants say that they made it clear from the start that they needed to make conservative investments because they were no longer working, had a family history of health issues, and wanted to preserve their finances to support themselves. Instead, Seymour allegedly recommended that they invest in L Bonds, which are risky, speculative, and illiquid.
Our seasoned GWG L Bond investment attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) are representing these retirees in their FINRA arbitration case, heard in Tampa.
If you are an L Bond investor in Florida and want to explore your legal options, call (813) 560-2992.
Investors Didn’t Want Any Risk, Yet They Were Sold L Bonds
This couple was very vocal about not wanting to take undue risk, which is why it makes no sense that Centaurus Financial recommended L Bonds, which are structured essentially as private placements. Not only that, but GWG Holdings has been in financial trouble for some time.
These problems came to a head in April 2022 when the alternative asset firm sold $1.6B of L Bonds through more than 140 regional broker-dealers and filed for Chapter 11 bankruptcy. This was two months after GWG defaulted on $13.6M of payments and interest it owed L Bond investors.
Centaurus Accused of Misrepresentations and Omissions
Centaurus Financial allegedly made misrepresentations and omissions to these customers. Failing to warn investors of the high risks involved and the Ponzi-like nature of GWG L bond repayments that came exclusively from the money made selling bonds to new investors. One has to wonder whether the high commissions of up to 8% earned by Centaurus and its broker played a part in their decision to recommend these illiquid junk bonds to these claimants unsuitably.
Also, the supervision by Centaurus of these investors’ accounts and their broker, who appears to have been self-supervised, was simply inexcusable. Any competent supervisor would never have approved the recommendation and trades of L Bonds for these retirees, nor would they have concentrated them in these privately traded securities. Now, these claimants are alleging failure to supervise, negligence, breach of fiduciary duty, and breach of contract.
Centaurus Financial Advisor Donna Seymour Is COO of Ingram Financial
Seymour is the chief operations officer of Ingram Financial Group. She and others at Winter Haven investment advisory firm are also a part of Centaurus Financial brokers. This means that they are registered with the broker-dealer and have the securities licenses and supervisory duties that go with working for this type of firm.
According to Donna Seymour’s CRD, she has worked 32 years in the industry, including the last six as a Centaurus broker. Other firms where she used to be registered: Investors Capital Corp., Investors Capital Advisory, Metropolitan Life Insurance, Citistreet Financial Services, Allen & Co. of Florida, Jefferson Pilot Securities, WMA Securities, Fidelity Brokerage Services, and Fidelity Investment Institutional.
How Do You Recover Your Loss in L Bonds?
SSEK Law Firm represents L Bond investors against Centaurus Financial and other broker-dealers in FINRA arbitration. We are committed to helping our clients recoup their losses.
Throughout the US, and to schedule your free, no-obligation case consultation with one of our seasoned GWG L Bond investment attorneys, call toll-free (866) 904-2456 today.