Elderly Ozark Retirees Says Joseph LaTour of Latour Asset Management in Springfield Sold Them GWG L Bonds

Couple File FINRA Arbitration Claim Against Center Street Securities Seeking Up to $500K in Damages

A Missouri couple in their 90s and 80s have filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against Center Street Securities and its broker Joseph Martin LaTour. The latter is an investment advisor who operates out of Springfield under the local firm Latour Asset Management.

In their FINRA arbitration case, the claimants request up to $500K in damages. They allege that Center Street Securities broker Joseph LaTour unsuitably recommended GWG Holdings L Bonds to them. This was regardless of the fact that they had sought low-risk, stable investments. 

The broker-dealer also allegedly unsuitably recommended other risky non-traded investments. These investments included non-traded or privately traded real estate investment trusts (REITs) and non-traded business development companies (BDCs). 

In April 2022, GWG Holdings, Inc. filed for Chapter 11 Bankruptcy protection. The alternative asset firm remains under investigation by the Securities and Exchange Commission (SEC) and has been late in submitting regulatory filings. In February 2022, GWG defaulted on $13.6M of payments and interest it owes L Bond investors.  

GWG Holdings sold $1.6B of L Bonds to investors. In May 2022, NASDAQ announced it was delisting GWG’s common stock. 

Our GWG L Bond lawyers represent these retirees in their FINRA arbitration claim. We are also representing other L Bond investors against Center Street Securities, including those who are now former customers of Joseph LaTour. Visit GWG Holdings, Inc. and GWG Holdings L Bonds to learn more. 

Claimants Suffer Huge Losses Even As Center Street Earned High Commissions

This retiree couple contends that Center Street Securities and LaTour allegedly never informed them of the incredible risks involving these life settlement-backed bonds. They also claim they weren’t made aware of the Ponzi-like nature of bond repayments, which was money from newer investors. Not only that, but these high-yield bonds are illiquid and speculative. 

They should never have been recommended to a senior couple with a low-risk tolerance level and conservative investing goals. Yet the brokerage firm and its financial advisor allegedly concentrated these claimants in GWG L Bonds and the other non-traded alternative investments. Center Street Securities and LaTour were paid high commissions for selling these products. 

Joseph LaTour has worked 13 years in the industry. Previous firms where he used to be registered include Brookstone Capital Management and Mutual of Omaha Investor Services. 

Supervisory Failures, Misrepresentations, and Unsuitability Alleged 

In their FINRA arbitration claim, the claimants accuse Center Street of “inexcusable” supervision in that LaTour was allegedly self-supervised with no on-site compliance. There was also no meaningful communication with any supervisor. 

Additionally, there allegedly doesn’t appear to have been any reasonable supervisory procedures in place. These procedures are necessary to protect clients from having their portfolios concentrated with unsuitable investments. These Ozark investors are alleging unsuitability, failure to supervise, misrepresentations and omissions, and negligence. 

Seasoned L Bond Lawyers Representing Investors Against Center Street Securities 

Center Street appears to have targeted older customers when marketing and selling GWG L Bonds. In another FINRA arbitration claim that SSEK has already filed, which also allegedly involves LaTour, the claimants are another retired couple from Missouri. They, too, are seeking up to $500K damages. A separate $500K claim that we submitted against Center Street was filed on behalf of a Tennessee couple. 

These are just some of the dozens of GWG L Bond cases against broker-dealers in which we are helping investors recoup their losses. Center Street and over 140 other broker-dealers partnered with brokerage firm Emerson Equity to split up to 8% in commissions on L Bond sales. 

To schedule your free case evaluation to determine whether you have grounds for an L Bond claim, call SSEK Law Firm at (800) 259-9010 today.

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