Brett Rutherford, a broker with Capital Investment Group, Inc., is currently under investigation by Haselkorn & Thibaut, a national investment fraud law firm, for his alleged involvement in the sale of GWG Holdings investments that have resulted in significant losses for investors. Investment fraud and bad advice from financial advisors can have devastating consequences for investors, leading to substantial financial losses and emotional distress.
GWG Holdings Bankruptcy and Allegations Against Brett Rutherford
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On April 20, 2022, GWG Holdings filed for Chapter 11 bankruptcy, leaving investors facing substantial losses. A complaint has been filed against Brett Rutherford, alleging breach of fiduciary duty, negligence, negligent misrepresentation, breach of contract, failure to supervise, and violation of Regulation Best Interest in connection with the sale of GWG Holdings investments.
According to the complaint, Rutherford recommended and sold these high-risk, illiquid investments to his clients without fully disclosing the associated risks or properly assessing the suitability of these investments for each investor’s unique financial situation and goals. Fiduciary duty is a crucial aspect of the relationship between a financial advisor and their clients, requiring the advisor to act in the best interests of their clients at all times.
Understanding the GWG Holdings Investments and FINRA Rules
GWG Holdings investments were sold as L Bonds, which are high-risk, illiquid direct investments in a company that purchased life insurance policies on the secondary market. These investments were often marketed to investors as a way to generate income and diversify their portfolios.
However, FINRA rules require brokers to conduct thorough due diligence on the investments they recommend and to ensure that these investments are suitable for each client based on their financial situation, risk tolerance, and investment objectives. Brokers must also disclose all material risks associated with the investments they recommend.
The complaint against Brett Rutherford alleges that he failed to adhere to these FINRA rules, resulting in significant harm to his clients.
The Impact on Investors
The bankruptcy of GWG Holdings and the alleged misconduct of Brett Rutherford have left many investors facing substantial losses. These investors trusted their financial advisor to provide sound guidance and recommend suitable investments, but instead, they find themselves navigating the complex process of seeking recovery for their losses.
This case highlights the importance of working with a financial advisor who prioritizes their clients’ best interests and adheres to FINRA rules and regulations. Investors must be vigilant in monitoring their investments and questioning any recommendations that seem too good to be true or do not align with their financial goals and risk tolerance.
Red Flags and Seeking Recovery Through FINRA Arbitration
Investors should be aware of red flags that may indicate financial advisor misconduct, such as:
- Lack of transparency about investment risks and fees
- Pressure to invest in high-risk or illiquid products
- Promises of guaranteed returns or “too good to be true” investment opportunities
If you believe you have been a victim of financial advisor misconduct, it is crucial to seek the guidance of an experienced investment fraud attorney. Haselkorn & Thibaut, with offices in Florida, New York, North Carolina, Arizona, and Texas, has over 50 years of combined experience and a 98% success rate in helping investors recover their losses through FINRA arbitration.
FINRA arbitration is a process that allows investors to seek recovery of their losses from brokers and brokerage firms without the need for a lengthy and expensive court trial. With their “No Recovery, No Fee” policy, Haselkorn & Thibaut is committed to fighting for investors’ rights and holding financial advisors accountable for their misconduct.
If you have suffered losses due to the alleged misconduct of Brett Rutherford or any other financial advisor, contact Haselkorn & Thibaut today for a free consultation at 1-888-885-7162 .
