Alternative Investment Fraud Lawyers

Elderly Investor Files L Bond Lawsuit Accusing Newbridge Securities of Making Unsuitable Investment Recommendation. Our Alternative Investment Fraud Lawyers Are Representing This Claimant

A senior investor is suing Newbridge Securities for up to $500K in damages for losses he sustained after the broker-dealer allegedly harmfully recommended high-risk junk bonds issued by GWG Holdings. That alternative asset firm is now accused of operating a more than $1.6B Ponzi scam.

Shepherd Smith Edwards and Kantas Alternative Investment Fraud Lawyers (investorlawyers.com) are representing this California claimant, whose case involves a financial advisor who appears to have been more concerned with earning high commissions rather than fulfilling her fiduciary duty to this investor and his wife.

Our client, a novice investor, met this financial advisor when she worked at a different broker-dealer. He later followed her to Newbridge Securities. Despite making it clear from the outset that he did not want or need to take undue risk, in part due to serious health expenses within the family, this Newbridge Securities broker went on to purportedly unsuitably recommend GWG L Bonds, which were already showing signs of being problematic.

Not only that, but the Newbridge Securities financial advisor appears to have misrepresented L Bonds as having the potential to make income for this investor while failing to fully disclose the risks—a likely omission. Furthermore, the broker-dealer did not have the appropriate compliance apparatus in place to sufficiently supervise its registered representative.

Now, our client is looking at a complete loss of the principal he invested in GWG. This has adversely impacted his retirement and his family’s future financial security. In his FINRA lawsuit, he is also alleging negligence and grossly negligent behavior.

L Bond Investments Were Always Too Risky For Inexperienced Investors

Our alternative investment loss recovery lawyers are representing a number of investors against Newbridge Securities, as well as the other brokerage firms that made a lot in commissions from selling these high-risk junk bonds to individuals who thought these were safe, low-risk investments. Sold by Emerson Equity, that brokerage firm solicited other broker-dealers to sell L Bonds for a cut of the up to 8% commission that was charged to investors.

Because this commission was scaled according to the maturity date, Newbridge had a vested financial interest in selling the bonds with the longest maturity dates offered to maximize its revenue. In 2022, GWG Holdings filed for Chapter 11 bankruptcy protection.

Alternative investments are generally complex, risky, nontransparent, and illiquid. Many of them are unsuitable for retail investors and unsophisticated investors. If you L Bond losses, you want to work with knowledgeable GWG L Bond lawyers who understand how broker misconduct or negligence may have played a part. Shepherd Smith Edwards has been fighting for investors for almost 30 years.

Many of us are former financial advisors who left that industry because there were a lot of unsavory practices that we witnessed that were causing investors harm. We now use our knowledge as former insiders to identify signs of stockbroker fraud and maximize our client’s chances for a full recovery from liable broker-dealers and investment advisers.

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