Elderly couple alleges unsuitability and concentration in risky speculative junk bonds
Two San Francisco retirees have filed a $500k Financial Industry Regulatory Authority (FINRA) case against NI Advisors, its President Sui-hock Goy, and broker Shirley Ank Wong. Broker Ank Wong also operates locally as AK Advisors in Daly City, CA. The investors contend they were unsuitably recommended L bonds despite wanting safe, secure investments for their retirement money.
These elderly customers are accusing Wong of using their shared cultural affinity to market these illiquid high-yield bonds to them. She then allegedly proceeded to concentrate $200k of their money in GWG L bonds while earning high commissions in the process.
GWG Holdings Inc. filed for Chapter 11 bankruptcy protection in early 2022. The alternative asset firm, which sold $1.6B of L bonds to investors, owes them millions of dollars. Meanwhile, the more than 140 regional broker-dealers that sold these investments to customers earned high commissions and fees. Visit GWG Holdings Inc. and GWG Holdings L Bonds for more information.
Our L Bond attorneys are representing these investors and others against NI Advisors in FINRA arbitration as we fight to recover their losses. Contact Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) today.
NI Advisors broker Shirley Wong named in another GWG L bond case
This is not the first time that Wong is being blamed by a customer for their involvement in L bonds. In June 2022, another investor filed a FINRA arbitration case. Other firms where Wong used to be registered include World Group Securities, Citicorp Investment Services, and AXA Advisors. She has worked for fourteen years in the industry
According to these San Francisco retirees, Wong allegedly misrepresented L Bonds as investments that would return interest with a guaranteed principal return and could be easily redeemed on the secondary market. She is accused of failing to explain to them that these were risky alternative investments not suitable for these customers’ investing profiles, financial goals, and low-risk tolerance levels.
Allegedly, not only did NI Advisors fail to warn of the Ponzi-like nature of bond repayments and neglect to properly supervise Wong, but the broker-dealer recommended L bond concentrations that were unsuitable for them. The couple is also accusing the respondents of negligence and breach of fiduciary duty.
NI Advisors president Sui-hock Guy was previously sanctioned by FINRA
Had there been proper supervision of Wong and these elderly investors’ account, it would have been clear from the start that L bonds were not the right investment for them, and they were being placed at risk of suffering potentially significant losses. Unfortunately, the lack of supervision that occurred was simply inexcusable.
This isn’t the only time the NI Advisors President has been accused of supervisory deficiencies. According to Sui-hock Goy’s CRD, FINRA censured him in 2013 and ordered him to pay a fine for failing to supervise another registered representative.
Other broker-dealers where Goy used to be a registered broker and/or investment advisor during his twenty-four years in the industry include White Pacific Securities, PMB Securities, Morgan Stanley, and Interfirst Capital Corp.
SSEK Law Firm represents L bond investors against NI Advisors
Our GWG L bond lawyers are representing dozens of investors against broker-dealers. In April 2022, we filed another FINRA arbitration claim involving NI Advisors broker Peter Po in Cupertino, CA.
How do you recover losses in L bonds?
Unfortunately, thousands of L bond investors, many of them retail customers and retirees, have suffered significant losses in the wake of taking on risks no one allegedly had apprised them of. SSEK Law Firm is dedicated to fighting for their financial recovery.
Call our GWG L bond attorneys at (866) 901-3874.