Hiko, Nevada Financial Advisor, BL Whipple Wealth Management, LLC
Three investors have filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against Newbridge Securities. The claimants seek up to $1M in damages over losses they sustained in GWG L Bonds.
These risky, illiquid junk bonds are from GWG Holdings, Inc., which filed for Chapter 11 bankruptcy protection in April 2022. Newbridge Securities is among the more than 140 regional brokerage firms that earned high commissions from selling L Bonds to customers.
Visit GWG Holdings and GWG Holdings L Bonds for more information.
The claimants are an older retired Los Angeles couple, along with their relative, also an elderly retiree, residing in New York City. All of them worked with Newbridge Securities broker Betsy Lou Whipple. Who is based out of Nevada and operates under the name BL Whipple Wealth Management, LLC.
Our brokerage firm’s arbitration and investment attorneys represent these senior investors in their fight to recover their investment losses. The losses were sustained after their Newbridge Securities financial advisor unsuitably recommended GWG Holdings L Bonds.
If you are an L Bond investor and want to explore your legal options, contact Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) today.
Claimants Were Allegedly Misrepresented to Expect 6% Return, Principal Guaranteed.
In their FINRA arbitration claim, the Los Angeles retirees contend that their Newbridge Securities broker persuaded them to invest $500K in L Bonds by allegedly misrepresenting that their investment would return 6% while guaranteeing their principal.
She allegedly misrepresented that these high-yield bonds could also be quickly sold on a secondary market at any time. Meanwhile, Whipple allegedly omitted that these were risky alternative investments while purportedly not informing them about the Ponzi-like nature of bond repayments that came solely from the sale of L Bonds to new investors. She also allegedly made similar misrepresentations and omissions to the New York investor.
All three claimants contend that they were very clear about how this was their retirement money. They needed products that were safe, with moderate to low-risk. Yet Newbridge Securities allegedly went on to unsuitably concentrate their portfolio with L bonds and other non-traded alternative investments. Meanwhile, their broker claimed that the firm’s supervisors fully vetted these recommendations.
Misrepresentations, Omissions, and Failure to Supervise Allegations.
In their FINRA arbitration claim, these retirees are alleging “inexcusable” poor supervision or lack thereof. And, it appears that Whipple may have been self-supervised. In case there had been a reasonable supervisor doing their job, they would never have approved the trades and recommendations made to these retirees.
These investors are now alleging unsuitability, misrepresentations and omissions, negligence, failure to supervise, gross negligence, breach of fiduciary duty, and other violations.
According to Betsy Whipple’s CRD, she has been a registered Newbridge Securities broker since 2018. Other firms where she used to be registered as a stockbroker and/or investment adviser over her 26 years in the industry include MS Howell &. Co., MSH Capital Advisors, LLC, Greenleaf Financial Network, Private Client Services, Merrill Lynch, Pierce, Fenner & Smith, Morgan Stanley Smith Barney, Morgan Stanley & Co., Bear Stearns & Co., and PaineWebber Inc.
Skilled GWG L-Bond Investment Attorneys
Suppose you have suffered losses through misrepresented GWG L bonds. SSEK Law firm’s investment lawyers offer a free consultation to evaluate your losses. SSEK Law represents investors nationwide and has helped people recover heavy financial losses.
SSEK Law Firm is representing investors in pursuing six- to seven-figures in damages from the brokerage firms that unsuitably recommended and sold them L Bonds. Call (800) 259-9010 today.