Claimants file FINRA arbitration claim against National Securities
Two Florida retirees have filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against National Securities Corp. They seek up to six figures in damages for the losses they sustained in GWG Holdings L bonds. The risky, illiquid junk bonds were allegedly recommended to them by former National Securities broker Marc Cline. He operated locally in Florida under the firm name CFG Capital, LLC (Cline Financial Group).
Cline, who’s no longer a registered representative, has fifteen customer disputes listed in his CRD. These were either settled or are still pending.
Our Florida GWG L bond lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) represent this elderly couple in their FINRA arbitration claim to obtain financial recovery. If you’re a Florida L Bond investor, call (813) 560-2992, so we can help you explore your legal options.
Ex-National Securities broker allegedly misrepresented GWG L bonds to investors
These retirees entrusted their retirement funds to Marc Cline and made it clear they wanted stable investments that were moderate- or low-risk. Cline initially recommended GWG L bonds, which he purportedly misrepresented as a fairly low-risk fixed-income product.
Cline allegedly marketed the GWG Preferred to the couple as a product that guaranteed principal return. At no time did he tell them that L bonds were an incredibly risky privately traded alternative investment. He also allegedly misrepresented GWG Preferred as having a readily accessible secondary market they could use to retrieve their funds at any time.
In April 2022, GWG Holdings filed for Chapter 11 bankruptcy protection. By this time, it had sold $1.6B of L bonds to investors through more than 140 regional broker-dealers that earned high commissions from the transactions. GWG Holdings and GWG Holdings L bonds for more information about the company and this investment.
Cline allegedly misrepresented GWG L bonds and Preferred as conservative, in line with their investing goals, and fully vetted by the firm’s managers. The couple accuses him of concentrating their funds in these alternative investments. Allegedly, at no point did National Securities warn these Florida investors of the Ponzi-like nature of L bond repayments.
Now, these investors are claiming failure to supervise, unsuitability, negligence, misrepresentations and omissions, and investor fraud.
SSEK Law Firm represents former customers of ex-National Securities broker Marc Cline
This couple isn’t the only investors our Florida broker misconduct attorneys have represented in FINRA arbitration against National Securities related to Marc Cline. We filed a claim against the broker-dealer for another Florida retiree after Cline allegedly concentrated his account in REITs, privately traded securities, and private placements, including GPB Capital Holdings, which is accused of operating a more than $1.8B Ponzi scam.
Over the years, investor claims against Cline have resulted in at least $500K in settlements for investors. Other still pending customer disputes:
- May 2022: An options investment strategy claim in which the investor is requesting $500K in damages.
- May 2022: A GWG Holdings L bond case. The customer is claiming $90K in damages.
- June 2021: An unsuitability claim in which the investor is pursuing $100K.
- December 2019: An unsuitability case that has the claimant pursuing $400K in financial recovery.
Other firms where Cline used to be registered during his twenty-two years in the industry are B. Riley Wealth Management, National Asset Management, Great National Investment Corporation, United Equity Securities, CCF Investments, and The Leaders Group.
Skilled GWG L bond lawyers
SSEK Law Firm is representing dozens of L Bonds investors against the many broker-dealers that recommended and profited from selling them these investments. If you are a GWG L bond investor and would like to explore your legal options, call (866) 904-5133 today.