Brokerage account of $500,000 at a value of $0 after management by Coastal Equities, Arkadios Capital and Suzanne Wheeler
KlaymanToskes seeks to recoup losses from investors in GWG L bonds
GWG Holdings, Inc. (OTCMKTS: GWGHQ)
CHESTER, MD, USA, Aug. 30, 2022 /EINPresswire.com/ — National securities fraud attorney KlaymanToskes (“KT”) announces its latest FINRA arbitration filing (File No. 22-01946 ) after his client’s brokerage account went from $500,000 to a value of $0. The claim alleges that Coastal Equities, Inc., Arkadios Capital, Arkadios Wealth Advisors and Suzanne Wheeler recommended high-risk alternative investments called GWG Holdings, Inc. (OTCMKTS: GWGHQ) L Bonds resulting in losses.
According to the claim, the investor is a divorced person whose assets were drastically reduced during a divorce and a tech employee who saw his stock options evaporate during the tech crash of the 2000s. conservative mindset and a retirement plan 7 years from now, the investor turned to family friend and trusted broker Suzanne Wheeler for advice. Wheeler tapped into that trust and asked the investor to put 100% of his retirement savings into GWG’s L bonds, a highly speculative and illiquid private placement.
Since the investor’s initial investment, GWG has stopped paying interest and principal payments, and the company is currently facing Chapter 11 bankruptcy and an SEC investigation. Therefore, the investor’s $500,000 brokerage account currently has a value of $0.
According to securities attorney Lawrence L. Klayman, Esq., “Brokerage firms and their brokers have a responsibility to conduct proper due diligence on the products they sell, including GWG L Bonds. They are also required to inform their clients of the potential risks associated with these investments. Moreover, the recommended portfolio was concentrated on a high-risk and illiquid investment, and was therefore not suitable. These violations mean Wheeler and the named brokerage firms are liable in a FINRA arbitration claim.
The sole purpose of this release is to investigate on behalf of our clients who have purchased GWG L Bonds through full-service brokerage firms including Coastal Equities and Arkadios Capital. Former and current Coastal Equities and Arkadios Capital clients with losses greater than $75,000 are encouraged to contact Lawrence L. Klayman, Esq. at 1 (888) 997-9956.
KlaymanToskes is a leading national securities law firm that practices exclusively in the area of securities arbitration and litigation on behalf of retail and institutional investors worldwide in major securities matters and complex. The firm has recovered more than $245 million for investors in FINRA arbitrations and more than $350 million in other securities litigation for its clients. KlaymanToskes has offices in California, Florida, New York and Puerto Rico.
Klayman Toskes, Pennsylvania