Alfred S. Vanderlaan (CRD #1172406) — WestPark Capital Broker Sanctioned Over
GWG L Bonds
Table of Contents
Haselkorn & Thibaut, P.A., operating as Investment Fraud Lawyers, represents retail investors who lost money after working with Alfred S.
Vanderlaan (CRD #1172406). In January 2025, FINRA sanctioned Vanderlaan for unsuitable recommendations of speculative GWG L Bonds. If you were a Vanderlaan customer and suffered losses, you may have a FINRA arbitration claim.
Who is Alfred S. Vanderlaan?
Alfred Sietze Vanderlaan, CRD #1172406, is a former registered representative based in Watertown, South Dakota. His BrokerCheck report discloses a long history of customer complaints and regulatory events.
| Background detail | Record |
|---|---|
| Name | Alfred Sietze Vanderlaan |
| CRD number | 1172406 |
| Most recent firm | WestPark Capital, Inc. (CRD #39914) |
| Dates at WestPark Capital | May 20, 2019 – June 2, 2022 |
| Prior firms | Sandlapper Securities, LLC; CapWest Securities, Inc. |
| Current status | Not currently registered with any FINRA member |
| Customer complaints | 13 disclosed disputes (8 final, 5 pending as of early 2025) |
| Pending alleged damages | More than $600,000 across five pending complaints |
What FINRA found
On January 22, 2025, FINRA issued an AWC (Letter of Acceptance, Waiver, and Consent) in Case #2021070498106. The AWC found that Vanderlaan willfully violated Regulation Best Interest and FINRA Rule 2010.
| Finding | Detail |
|---|---|
| Violation | Reg BI Rule 15l-1(a)(1) and FINRA Rule 2010 |
| Product | GWG L Bonds — speculative, unrated corporate bonds issued by GWG Holdings |
| Customers | Two retail customers, including a senior citizen, with moderate risk tolerance |
| Harm | Customers held more than 20 percent of their liquid net worth in alternative investments |
| Commissions | Vanderlaan received approximately $6,508 in commissions |
| Fine | $10,000 deferred fine |
| Restitution | $6,508 to customers, plus interest |
| Suspension | Three months, February 3, 2025 through May 2, 2025 |
GWG Holdings filed for bankruptcy in April 2022. The GWG L Bonds were illiquid and high-risk. FINRA concluded that the recommendations were not in the customers’ best interests because they did not match the investors’ risk tolerance, age, or financial goals.
Pending customer complaints
In addition to the FINRA AWC, Vanderlaan faces five pending customer disputes filed in 2023. These complaints allege breach of fiduciary duty, negligence, negligent misrepresentation, breach of contract, failure to supervise, and violation of Reg BI.
| Complaint date | Alleged damages |
|---|---|
| March 21, 2023 | $315,000 |
| June 16, 2023 | $50,000 |
| June 30, 2023 | $105,000 |
| July 28, 2023 | $40,000 |
| September 26, 2023 | $100,000 |
The total pending alleged damages exceed $600,000. The claims focus on unsuitable GWG L Bond recommendations.
Common allegations in
Vanderlaan cases
Investors who worked with Alfred Vanderlaan have raised several recurring claims:
- Unsuitable recommendations. GWG L Bonds were too
risky for customers seeking growth and income. - Overconcentration. Customers placed more than 20
percent of their liquid net worth into alternative investments. - Failure to disclose risks. The bonds were unrated
and issued by a company that later filed for bankruptcy. - Failure to supervise. WestPark Capital allegedly
failed to detect or prevent the unsuitable sales. - Violation of Reg BI. The recommendations
prioritized broker commissions over customer best interests.
What Reg BI requires
Regulation Best Interest became effective on June 30, 2020. It requires brokers to act in the best interest of retail customers when making recommendations. The rule includes four core obligations:
| Obligation | What it means |
|---|---|
| Disclosure | Provide full written disclosure of all material facts and conflicts |
| Care | Exercise reasonable diligence to understand the product, risks, and customer profile |
| Conflict of interest | Identify and mitigate conflicts that could affect the recommendation |
| Compliance | establish policies to comply with Reg BI |
Vanderlaan’s case centers on the Care Obligation. FINRA determined that he did not use reasonable diligence to make sure the GWG L Bond recommendations fit the customers’ investment profiles.
What WestPark Capital
was required to do
Broker-dealers are responsible for supervising their registered representatives. WestPark Capital was required to:
- Review customer-specific suitability documentation
- Monitor concentrated positions in speculative products
- Supervise alternative investment sales
- Train advisors on Reg BI obligations
- Investigate red flags such as customer complaints
FINRA separately cited WestPark Capital for failing to establish a reasonably designed supervisory system for Reg BI until September 2024, despite regulatory guidance issued in 2021 and 2022.
How investors can recover
losses
If you lost money in GWG L Bonds or other investments recommended by Alfred Vanderlaan, you may be able to recover through FINRA arbitration. FINRA arbitration is typically faster than court litigation and is the required forum for most brokerage customer disputes.
Typical evidence includes:
- Brokerage statements showing GWG L Bond purchases
- Private placement memoranda or offering documents
- Suitability questionnaires
- Correspondence with Vanderlaan or WestPark Capital
- Account records showing concentration percentages
How Investment Fraud
Lawyers can help
Haselkorn & Thibaut, P.A., operating as Investment Fraud Lawyers, reviews broker misconduct cases at no cost. We work on a contingency fee basis: no recovery, no fee. If you invested with Alfred Vanderlaan or another WestPark Capital representative and have concerns, call us at 1-888-885-7162 or use our confidential contact form.
Legal disclaimer: Past results do not guarantee future outcomes. Every case is unique, and recovery depends on the specific facts, applicable law, and available defendants.
Related resources
- FINRA
BrokerCheck report for Alfred S. Vanderlaan - FINRA
AWC document — Case #2021070498106 - Return to our main resource on GWG L
Bond losses or broker
misconduct.
