Soreide Law Group is currently investigating claims that investors have made against brokers/financial advisors who may have made recommendations to purchase GWG L Bonds. JAMES EARL WILLIAMS of NEWBRIDGE SECURITIES CORPORATION in Boca Raton, Florida, allegedly may have recommended to certain clients the purchase of GWG L Bonds.
GWG Holdings is the issuer of the L Bond, a speculative and risky high-yield bond whose sales have been suspended effective January 10, 2022. The L bond was a specialty high-yield bond created and issued by GWG Holdings (GWGH) from 2012 through 2021. This bond was a private placement. The L bond financed the purchase of life insurance policies on the secondary market, paying policyholders more than the policy's surrender value. The L bond is highly speculative and sought to provide a high yield for the bondholder in exchange for the risk that insurance policy premiums or benefits may not be paid. GWG Holdings suspended L bond sales, April of 2021. GWG Holdings reportedly failed to make a January 15, 2022 interest payment of $10,350,000. It also was unable to make $3,250,000 in principal payments.
Since L Bonds carry significant risks, they are not suitable for all investors. Particularly if a broker/financial advisor made unsuitable recommendations of GWG Holdings L Bonds to investors with low-risk tolerances, conservative investment objectives, or liquidity needs.
According to FINRA’s BrokerCheck, available to the public on FINRA’s website, JAMES EARL WILLIAMS, has been in the securities industry for 34 years and has 8 disclosures on his FINRA CRD report. Of the 8 disclosures, 4 are “Customer Disputes,” 3 have settled and 1 was denied. Of the three that have settled, some of the allegations listed were, recommending unsuitable mutual funds, excessive and unsuitable securities transactions, and purchasing stock without authorization. The settlement amounts were, $45,500.00, $40,000.00 and $850,000.00. Williams denies any wrong doing.
JAMES EARL WILLIAMS has been with 5 firms and is currently listed with the following firm since 6/9/2010:
NEWBRIDGE SECURITIES CORPORATION
1200 NORTH FEDERAL HIGHWAY
SUITE 400
BOCA RATON, FL 33432
It was reported that GWG Holdings, stated in prospectuses that: "Investing in our L Bonds may be considered speculative and involves a high degree of risk, including the risk of losing your entire investment."
FINRA states in their “Investors Rights and Responsibilities,” that before recommending the purchase or sale of any investment or investment strategy, a broker/dealer or financial advisor must have reasonable grounds for believing that the recommendation is suitable for a client, after considering the client’s other investments, financial situation, needs and objectives, and all other information obtained through the exercise of reasonable diligence, which are known as the “essential facts” concerning every customer.
If you purchased the high-risk and illiquid private placement, GWG L Bonds, through JAMES EARL WILLIAMS of NEWBRIDGE SECURITIES CORPORATION in Boca Raton, Florida, and like many investors, you suffered devastating losses, you may be able to recover your losses through a FINRA arbitration. Contact the South Florida-based Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your financial losses through a FINRA arbitration at: 888-760-6552.
Soreide Law Group works on a contingency fee basis, no fee to you if no recovery, and represents clients nationwide before FINRA.