In a recent development, a serious allegation has been made against Joseph Jackson, a broker and investment advisor associated with Capital Investment Group, Inc. (CRD 14752) in North Carolina. The complaint, filed on March 4, 2024, alleges breach of fiduciary duty, negligence, negligent misrepresentation, breach of contract, failure to supervise, and negligence – violation of Regulation Best Interest, related to investments in GWG Holdings, Inc.‘s L-Bonds. This case is particularly significant as GWG Holdings, Inc. filed for Chapter 11 bankruptcy on April 20, 2022, which could have severe implications for investors. Bloomberg reported on the bankruptcy filing, highlighting the potential risks faced by investors in such situations.
Impact on Investors
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The bankruptcy filing of GWG Holdings, Inc. and the allegations against Joseph Jackson have raised concerns among investors who have invested in GWG’s L-Bonds through Capital Investment Group, Inc. The potential losses faced by these investors could be substantial, depending on the outcome of the pending customer dispute and the bankruptcy proceedings. Investment fraud and bad advice from financial advisors can have devastating consequences for investors, often resulting in significant financial losses and emotional distress.
Regulatory Violations and FINRA Rules
The allegations against Joseph Jackson involve several potential violations of FINRA rules and regulations. These include:
- Breach of fiduciary duty
- Negligence and negligent misrepresentation
- Breach of contract
- Failure to supervise
- Negligence – violation of Regulation Best Interest
FINRA Rule 2111, known as the “Suitability Rule,” requires brokers to have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer, based on the customer’s investment profile. The alleged violations suggest that Joseph Jackson may have failed to adhere to this rule when recommending investments in GWG’s L-Bonds.
Protecting Investors’ Rights
Investors who have suffered losses due to the alleged misconduct of Joseph Jackson and Capital Investment Group, Inc. have the right to seek recovery of their losses through FINRA arbitration. This process allows investors to present their case before a panel of arbitrators who will decide on the merits of the claim and potentially award damages to the investor.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Joseph Jackson and Capital Investment Group, Inc. The firm has over 50 years of combined experience and a 98% success rate in helping investors recover their losses through FINRA arbitration.
Red Flags and Warning Signs
Investors should be aware of potential red flags and warning signs that may indicate financial advisor malpractice or misconduct. These include:
- Unexplained or excessive account losses
- Unauthorized trades or transactions
- Lack of transparency or communication from the advisor
- Pressure to invest in high-risk or unsuitable products
If investors suspect that they have been a victim of financial advisor malpractice, they should promptly seek the advice of an experienced investment fraud attorney to protect their rights and explore their options for recovery.
Seeking Legal Assistance
Haselkorn & Thibaut offers free consultations to investors who have suffered losses due to financial advisor misconduct. The firm operates on a contingency fee basis, meaning they charge no fees unless they successfully recover losses for their clients.
Investors who have suffered losses due to the alleged misconduct of Joseph Jackson or Capital Investment Group, Inc. are encouraged to contact Haselkorn & Thibaut at their toll-free number, 1-888-885-7162 , for a free consultation.
Protecting Your Investments
The allegations against Joseph Jackson and the bankruptcy filing of GWG Holdings, Inc. serve as a reminder of the importance of conducting thorough research and due diligence when making investment decisions. Investors should carefully consider the risks associated with any investment, particularly those involving direct investments in DPP & LP interests, and seek the advice of a trusted financial professional before committing their funds.
By staying informed, vigilant, and proactive in protecting their rights, investors can help safeguard their financial future and hold accountable those who engage in misconduct or malpractice.
