FINRA Arbitration Claim Over GWG L Bonds

Texas Retiree Files Six-Figure FINRA Arbitration Claim Over Her Investment Losses

An Austin, TX investor has filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against Western International Securities, Inc. The investor sustained losses in GWG Holdings L Bonds and the following non-traded real estate investment trusts (non-traded REITs):

Griffin Realty Trust Class E
Lodging Fund REIT III, Inc.
MCI Preferred Income Fund IV LLC

Due to the losses incurred, the investor is requesting up to $500K in damages. A panel of arbitrators will hear her case in Houston.

The claimant’s broker, Western International Securities vice president Shomir Mukherjee in Westlake Village, California, is a former colleague of hers. This retiree alleges that he exploited their professional friendship by purposely designing an investment plan that would financially benefit him more than her.

Are you an investor in GWG L Bonds and Non-Traded REITs? SSEK Investment Attorneys Help File FINRA Arbitration Claim

Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) is representing this in investor in FINRA arbitration. Over the years, our alternative investment attorneys have represented clients nationwide against Western International Securities. To pursue damages over losses caused by broker misconduct or negligence.

Allegedly Western International Financial Advisor Misrepresented Bonds To Unsophisticated Investor

The claimant and Mukherjee used to be co-workers at another financial institution. When Mukherjee left to join Western International Securities, he became her financial advisor.

Starting in 2016 the brokerage firm purportedly began soliciting alternative investments from this customer. This eventually resulted in an overconcentration in GWG L Bonds and the three non-traded REITs.

All of these products were too risky and unsuitable for this retiree. Meanwhile, her Western International Securities financial advisor allegedly misrepresented and marketed these investments as safer than they were. Seeking to take advantage of her inexperience as an investor. The broker also allegedly never attempted to properly diversify this customer’s holdings.

Customer’s Portfolio Concentrated in L Bonds

For example, currently, 45% of her holdings are in highly speculative L Bonds and illiquid non-traded REITs. In addition to that, due to a clerical error, the financial advisor allegedly recommended that she double her already $50K investment in these life settlement-backed bonds. If this would have gone through and her losses would be even greater. Now, this Austin retiree is one of many investors who are fighting to recoup their losses in GWG L Bonds.

GWG Holdings filed for Chapter 11 bankruptcy protection in April 2022. Managing the brokerage firm Emerson Equity and over 140 regional broker-dealers, including Western International Securities, the alternative asset firm sold $1.6B of L Bonds. Meanwhile, these securities professionals were paid high commissions of up to 8% for pushing this product onto customers.

SSEK Law Firm Partner and GWG L Bond Attorney Kirk Smith:

Find out more about GWG Holdings, Inc. and GWG Holdings L Bonds.

In her FINRA arbitration case, this investor is alleging unsuitability, misrepresentations, omissions, negligence, grossly negligent behavior, breach of fiduciary duty, and other claims.

According to Shomir Mukherjee’s CRD, who has worked for 22 years in the industry. Other firms where he used to be a registered broker and/or investment adviser include Citigroup Global Markets, Citicorp Investment Services, Salomon Smith Barney, and PaineWebber Incorporated.

Seasoned Alternative Investment Law Firm

Our GWG L Bond investment attorneys and non-traded REIT securities lawyers represent investors throughout the United States. Our seasoned experts have filed FINRA arbitration claims against a number of broker-dealers that sold these junk bonds to defenseless investors. We continue to represent clients who unreasonably suffered losses in non-traded real estate investment trusts and other alternative investments.

Contact SSEK Law Firm For a Free Consultation today.

Houston, Tx: (713) 227-2400

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California: Phone: (619) 550-4847

Throughout the US: (800) 259-9010