Haselkorn & Thibaut has opened an investigation into Irvine, California financial advisor Gary Madrid and his recent investor complaint involving GWG L Bond investments. If you invested with Mr. Madrid through WestPark Capital or Newport Coast Securities and experienced losses, particularly with GWG L Bonds, you may have options for recovery.
Gary Madrid’s Background and Registration History
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Gary Madrid (CRD# 1934700) brings 36 years of securities industry experience to his role as a financial advisor. Currently based in Irvine, California, he has maintained his broker registration with WestPark Capital since 2016.
His extensive career includes registrations with several firms:
- Newport Coast Securities
- Gunnallen Financial
- Brookstreet Securities Corporation
- Toluca Pacific Securities
- Whitehall Investment Securities
- Stuart-James Company
Mr. Madrid has demonstrated his industry knowledge through five securities qualifying examinations, including the Series 7, Series 63, Series 79TO, and SIE exams. He currently holds licenses in 20 states.
Recent Investor Complaint and Allegations
In August 2025, an investor filed a complaint against Gary Madrid alleging serious concerns about his recommendation of GWG L Bonds while representing WestPark Capital. The complaint centers on three key allegations:
| Allegation Type | Details |
|---|---|
| Breach of Fiduciary Duty | Failed to act in client’s best interest |
| Negligence | Exercised poor judgment in investment recommendations |
| Regulation Best Interest Violation | Did not meet regulatory standards for recommendations |
The complaint seeks $50,000 in damages and remains pending as of the latest available information.
Understanding GWG L Bonds and Their Risks
GWG L bonds represented a unique and complex investment product that many investors may not have fully understood. These corporate bonds, issued by Dallas-based GWG Holdings, operated on an unusual business model.
Here’s how GWG L bonds worked: The company pooled investor money to purchase life insurance policies on the secondary market. Returns to bondholders were supposed to come from life insurance payouts when policyholders passed away. This created an investment tied directly to mortality rates and life expectancy calculations.
Before its April 2022 bankruptcy filing, GWG Holdings had raised approximately $1.6 billion, primarily from individual investors. The bankruptcy left many investors facing significant losses on what they may have believed were stable, income-producing investments.
Red Flags for Investors to Consider
When evaluating your investment experience with any financial advisor, including situations involving alternative investments like GWG L bonds, watch for these warning signs:
Concentration Risk: Were a large portion of your assets placed in a single investment or similar products?
Suitability Concerns: Did the investment match your risk tolerance, investment timeline, and financial goals?
Disclosure Issues: Were all risks clearly explained, including the possibility of total loss?
Alternative Investment Complexity: Did you fully understand how the investment generated returns?
Commission Incentives: Were high commissions a factor in the recommendation?
Your Rights as an Investor
If you invested in GWG L bonds or other investments through Gary Madrid at WestPark Capital or his previous firms, you have important rights. Financial advisors have a duty to recommend suitable investments that align with your financial situation, risk tolerance, and investment objectives.
The recent Regulation Best Interest rules further strengthen these protections, requiring advisors to:
- Act in your best interest when making recommendations
- Avoid placing their financial interests ahead of yours
- Disclose material conflicts of interest
- Exercise reasonable care in making recommendations
Time Limits Matter
Investment loss claims have strict time limitations. The statute of limitations varies by state and claim type, but generally ranges from one to six years. Waiting too long could mean losing your right to recover losses, even if you have a valid claim.
Why Professional Legal Review Matters
Investment loss cases involve complex regulations, industry standards, and legal requirements. An experienced investment fraud attorney can:
- Review your account statements and investment documents
- Identify potential violations of securities laws
- Calculate your actual losses
- Determine the best path forward for recovery
- Handle negotiations with brokerage firms and their attorneys
Take Action to Protect Your Financial Future
If you suffered losses in GWG L bonds or other investments recommended by Gary Madrid, you don’t have to navigate this complex situation alone. Haselkorn & Thibaut has over 50 years of experience helping investors nationwide recover losses from unsuitable investment recommendations.
With a 98% success rate and millions recovered for clients, the firm operates on a “no recovery, no fee” basis. This means you pay nothing unless they successfully recover compensation for your losses.
Don’t wait to explore your options. Contact Haselkorn & Thibaut today at 1-888-885-7162 for a free, confidential consultation about your investment losses. Their experienced team can review your situation and help you understand your rights and potential paths to recovery. Visit investmentfraudlawyers.com to learn more about how they can help protect your financial interests.
