Customer filed a FINRA arbitration claim received by the firm on Oct 30, 2022. The claim alleges failure to disclose risk parameters surrounding an investment in a GWG "L Bond". In particular, failure to disclose a possible risk that the principal of the Bond could not be readily accessed or that there was a risk that monthly income could somehow be lost was alleged. The customer also alleges that there was an unsuitable over-concentration in alternative investments and failure on the part of the firm to conduct adequate due diligence. The subject investment in question has filed for Federal Bankruptcy protection under Chapter 11 (re-organization). Internal investigation of facts surrounding allegations was completed on Dec 4th 2022 noting that the term of the bond in question and associated risk parameters were appropriately reflected in person and via documentation provided to the client. Customer requests rescission of investment (83K) and compensatory damages of less than 100k. Ascertainment of alleged actual damages is impossible until Chapter 11 proceedings are completed. Both firm and representative deny the claim(s) and intend to rigorously contest the matter.

$83,000.00

$35,000.00

Without admitting or denying the allegations, respondent and firm agreed to settle the claim to avoid court costs.

Customer filed a FINRA arbitration claim received by the firm on Nov. 15, 2022. The claim alleges failure to conduct adequate due diligence, misrepresentation of the investment's safety, failure to adequately disclose the risk surrounding an investment in the product and unsuitability. The subject investment has filed for Federal Bankruptcy protection under Chapter 11 (re-organization). Internal investigation of facts surrounding allegations was completed on Dec 15th 2022 noting that due diligence was performed, the associated risk complained of was appropriately reflected both in person and via documentation provided to and signed for the client. Customer is requesting an award in the amount of $100,001 and additional compensatory damages of less than 100k. Ascertainment of any alleged actual damages is impossible until re-organization of GWG under Chapter 11 proceedings is completed. Both firm and representative deny the claim(s) and intend to rigorously contest the matter.

$100,001.00

$35,000.00

Without admitting or denying the allegations, respondent and firm agreed to settle the claim to avoid court costs.