Tr?id=566623520170033&ev=PageView&noscript=1

FINRA Arbitration Awards $100,000 to Investor Over Unsuitable GWG L Bonds

Posted on June 5th, 2024 at 10:57 AM
FINRA Arbitration Awards $100,000 to Investor Over Unsuitable GWG L Bonds

From the desk of Jim Eccleston at Eccleston Law

In a recent FINRA arbitration, an investor was awarded close to $100,000 due to unsuitable investments in GWG L bonds purchased in 2018 and 2020.

According to InvestmentNews, the arbitrator emphasized the broker-dealer and financial advisor's failure to uphold their fiduciary duty to the client. Mahrle pointed to GWG's weak economic position in 2020 as a red flag that Greenberg Financial Group and advisor David Sherwood ignored.

The FINRA award is unique because it is “reasoned” and reflects a growing trend of arbitration awards being reasoned decisions in securities industry disputes.

InvestmentNews reports that expert testimony supported the unsuitability of GWG L bonds, leading the arbitrator to hold Greenberg Financial and Sherwood liable for the investor's damages. While punitive damages were denied due to lack of factual basis, the award underscores the importance of broker-dealers and advisors fulfilling their fiduciary obligations to clients.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, finra

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

You were most helpful with my FINRA deposition. You are a good lawyer and a good person.

Dan B.

LATEST NEWS AND ARTICLES

1790960250 Law
October 2, 2026
FINRA Arbitrators Award Schwab Client $1.34 Million in Cryptocurrency Scam Dispute

A Financial Industry Regulatory Authority (FINRA) Dispute Resolution Services arbitration panel awarded nearly $1.34 million in compensatory damages to a Charles Schwab & Co.

1790867615 Law
October 1, 2026
Prosecutors Target Multimillion-Dollar Investment Schemes Involving Promissory Notes

Federal prosecutors recently pursued two investment fraud cases involving promissory notes that caused combined investor losses exceeding $25 million.

1790789328 Law
September 30, 2026
SEC Approves FINRA Overhaul of Outside Business Activity Rules

The Securities and Exchange Commission (SEC) has approved FINRA's long-awaited overhaul of the rules governing outside business activities and private securities transactions by financial advisors.