Gavin Langley, a broker and investment advisor associated with Capital Investment Group, Inc., has been named in a recently settled customer dispute involving GWG Holdings, Inc., a direct investment in DPP & LP interests. The dispute, which was resolved on February 12, 2024, alleges that GWG Holdings, Inc. filed for Chapter 11 bankruptcy on April 20, 2022. Although no formal statement of claim was filed by the client or opposing counsel, the settlement raises concerns about the suitability of the investment and the potential for broker misconduct.
The FINRA BrokerCheck report for Gavin Langley (CRD #5658413) reveals that he has been registered with Capital Investment Group, Inc. (CRD #14752) in North Carolina since September 6, 2013. The firm, which offers both brokerage and investment advisory services, now faces scrutiny over its sale of GWG Holdings, Inc. securities.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Gavin Langley and Capital Investment Group, Inc. in connection with the sale of GWG Holdings, Inc. investments. With over 50 years of combined experience and a 98% success rate, Haselkorn & Thibaut has a proven track record of helping investors recover losses through FINRA arbitration. The firm operates on a contingency fee basis, meaning clients pay no fees unless a recovery is obtained. Investors who believe they may have suffered losses due to broker misconduct or unsuitable investment recommendations are encouraged to contact Haselkorn & Thibaut for a free consultation at 1-888-885-7162 .
Understanding the GWG Holdings, Inc. bankruptcy and FINRA rules
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GWG Holdings, Inc., a firm that offered direct investments in DPP and LP interests, filed for Chapter 11 bankruptcy protection on April 20, 2022. The bankruptcy filing raises questions about the suitability of these investments and whether brokers adequately disclosed the risks to their clients. FINRA Rule 2111, known as the “Suitability Rule,” requires brokers to have a reasonable basis to believe that a recommended investment or strategy is suitable for the customer, based on the customer’s investment profile.
Brokers must consider factors such as the customer’s age, financial situation, risk tolerance, and investment objectives when making recommendations. Additionally, FINRA Rule 2020 prohibits brokers from making material misrepresentations or omitting material facts in connection with the sale of securities. If a broker fails to adhere to these rules, they may be held liable for investor losses.
The importance of due diligence for investors
The GWG Holdings, Inc. bankruptcy case underscores the importance of thorough due diligence when considering alternative investments like DPP and LP interests. These investments often carry higher risks than traditional stocks and bonds, and they may not be suitable for all investors. It is crucial for investors to understand the potential risks and rewards associated with these investments and to carefully review the offering documents and disclosures provided by the issuer.
Investors should also be cautious of brokers who downplay the risks of alternative investments or promise guaranteed returns. If an investment seems too good to be true, it probably is. Investors should always ask questions, seek second opinions, and thoroughly research any investment opportunity before committing their funds.
Red flags for financial advisor misconduct and recovering losses
Investors should be aware of potential red flags that may indicate broker misconduct, such as:
- Recommending unsuitable investments based on the investor’s profile and risk tolerance
- Failing to properly disclose the risks associated with an investment
- Making material misrepresentations or omitting material facts about an investment
- Engaging in unauthorized trading or excessive trading to generate commissions
If an investor suspects that they have suffered losses due to broker misconduct, they may be able to recover damages through FINRA arbitration. FINRA arbitration is a private, independent forum for resolving disputes between investors and brokers. It is often faster and less expensive than traditional litigation, and the decisions rendered by FINRA arbitration panels are binding.
Investors who wish to pursue a claim through FINRA arbitration should consider working with an experienced investment fraud attorney. Haselkorn & Thibaut has a team of skilled attorneys who can help investors navigate the arbitration process and fight for the compensation they deserve. With a 98% success rate and a “No Recovery, No Fee” policy, Haselkorn & Thibaut is committed to helping investors protect their rights and recover their losses. Contact them today at 1-888-885-7162 for a free consultation.
