Shepherd Smith Edwards and Kantas L Bond Loss Recovery Lawyers Files Six-Figure GWG Investor Lawsuit Against Capital Investment Group
More Broker-Dealers Are Being Held Liable For Unsuitable Recommendations
Two North Carolina investors are seeking up to $500K in damages from brokerage firm Capital Investment Group after they sustained significant losses in GWG L Bonds. Alternative asset firm GWG Holdings is accused of running a more than $1.6B Ponzi scam. Shepherd Smith Edwards and Kantas (investorlawyers.com) is representing these claimants and many others that were allegedly unsuitably marketed and sold these high-risk junk bonds by regional broker-dealers.
In their FINRA lawsuit, these elderly retirees are contending that Capital Investment Group broker Bowman James Nicholson allegedly disregarded their best interests and desire for a low-to-no-risk investment while purportedly misrepresenting GWG L Bonds as “very low risk.” These were novice investors who should not have been placed in illiquid junk bonds.
Meanwhile, they claim that throughout the life of the account, they were assured that their money was safe and, if they just hung in there, there would be a return of principal.
One can only assume that the high commissions they could earn compelled Capital Investment Group to make this allegedly inappropriate investment recommendation. Proper due diligence by the broker-dealer should have revealed regulatory issues and other problems going back at least a couple of years before GWG filed for bankruptcy and defaulted on L Bond payments, which led to investors being owed millions of dollars in principal payments plus interest.
Earlier this month, a FINRA arbitration panel awarded a number of L Bond investors a collective more than $800K in damages, including $75K in emotional damages each for two of the claimants against a brokerage firm. Several months ago, the arbitrator in another GWG case, while granting a $100K award noted that L Bonds likely were unsuitable for any investor.
Contact Our L Bond Loss Recovery Lawyers Today
GWG Holdings filed for bankruptcy protection in April 2022, but that doesn’t mean that the thousands of investors who thought their funds were safe in life settlement-backed bonds will be getting their money back through those proceedings. The GWG Wind Down Trustee even disclosed in financials submitted this year that bondholders could expect to get back, at best, a small fraction of their funds.
However, what an investor can do is hold the broker that sold them GWG L Bonds liable if unsuitability, misrepresentations and omissions, overconcentration, due diligence failures, best interest violations, negligence, gross negligence, or failure to supervise occurred.
When you work with us, you become part of our unit of GWG L Bond claims that is represented by our entire securities law firm. Our team of savvy securities attorneys, legal assistants, consultants and others at Shepherd Smith Edwards and Kantas have more than a century’s worth of combined experience in securities law and the securities industry. Our L bond fraud attorneys are well-respected by both our peers and opposing counsel for the integrity and knowledge we bring to each claim that we represent. We pride ourselves on providing personalized, quality representation. Read about what former clients have to say about working with us.
How To Contact Our L Bond Loss Recovery Lawyers
Call (800) 259-9010 or fill out this form.