Jason Seurer, a broker and investment advisor with Landolt Securities, Inc. (CRD 28352), is facing a pending customer dispute allegation related to the sale of GWG L Bonds. The complaint, filed on January 5, 2024, comes nearly two years after GWG Holdings Inc. filed for Chapter 11 bankruptcy protection. The customer alleges that her purchases of L Bonds in November 2019 were unsuitable investments.
The details of the complaint reveal that the customer is seeking damages in the amount of $###,###. Jason Seurer has denied the allegations, stating that the client acknowledged the suitability of the investment and understood the risks involved in writing. The dispute is currently pending resolution. According to Bloomberg, GWG Holdings Inc. filed for bankruptcy in April 2022 after missing debt payments, leaving many investors uncertain about the future of their investments.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Jason Seurer and Landolt Securities, Inc. in connection with the sale of GWG L Bonds. 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 offers free consultations to clients and works on a “No Recovery, No Fee” basis. Investors can contact Haselkorn & Thibaut toll-free at 1-888-628-5590.
Understanding FINRA Rules and GWG L Bonds
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FINRA, or the Financial Industry Regulatory Authority, is a self-regulatory organization that oversees broker-dealers and their registered representatives. FINRA Rule 2111, known as the “Suitability Rule,” requires brokers to have a reasonable basis to believe that a recommended investment or investment strategy is suitable for the customer, based on the customer’s investment profile.
GWG L Bonds were high-risk, illiquid investments that offered attractive yields but came with significant risks. These bonds were issued by GWG Holdings Inc., a company that purchased life insurance policies on the secondary market. The company’s business model relied on the ability to continue raising capital through the sale of L Bonds to fund policy acquisitions and pay interest to bondholders.
The Importance of Suitability for Investors
The suitability of an investment is crucial for investors, as it ensures that the recommended investment aligns with their financial goals, risk tolerance, and overall investment profile. When a broker recommends an unsuitable investment, it can lead to substantial losses for the investor.
In the case of GWG L Bonds, many investors may not have fully understood the risks associated with these complex products. Brokers have a duty to explain the risks and ensure that the investment is appropriate for each individual client. Failure to do so may constitute broker misconduct and provide grounds for a FINRA arbitration claim. Investment fraud and bad advice from financial advisors can have devastating effects on an investor’s financial well-being, and it is essential for investors to be aware of their rights and options for seeking recovery.
Red Flags and Recovering Losses
Investors should be aware of red flags that may indicate financial advisor malpractice, such as:
- Recommending investments that are inconsistent with the investor’s risk tolerance or investment objectives
- Failing to fully explain the risks associated with an investment
- Concentrating an investor’s portfolio in a single, high-risk investment
If an investor believes they have suffered losses due to unsuitable investment recommendations, they may be able to recover damages through FINRA arbitration. Filing a claim allows the investor to present evidence and arguments before a neutral panel of arbitrators, who will then render a binding decision.
Haselkorn & Thibaut has extensive experience representing investors in FINRA arbitration proceedings. Their team of attorneys and staff work tirelessly to help clients navigate the arbitration process and pursue the recovery of their investment losses. Investors who have suffered losses related to GWG L Bonds or other unsuitable investments are encouraged to contact Haselkorn & Thibaut for a free consultation to discuss their legal options.
