FINRA Sanctions Former Broker for Unsuitable, High-Risk GWG Bond Sales

Posted on June 6th, 2025 at 1:45 PM
FINRA Sanctions Former Broker for Unsuitable, High-Risk GWG Bond Sales

From the desk of Jim Eccleston at Eccleston Law

The Financial Industry Regulatory Authority (FINRA) has suspended and fined a former advisor for what FINRA alleged were excessively risky investments that left clients exposed to significant losses. According to a recently issued FINRA Acceptance, Waiver and Consent letter (“AWC”), Phillip C. Anderson concentrated 96 percent of one client’s investable assets and net worth into GWG Holdings bonds.

Anderson, recently registered with Kingswood Capital Partners in Roseville, California, made the unsuitable recommendations in 2019. As reported by InvestmentNews, FINRA determined that his advice violated industry rules by ignoring the customers’ investment profiles.

GWG Holdings issued L bonds, alternative investments backed by life settlements. Roughly 40 broker-dealers collectively sold about $1.6 billion in these products, which lacked a viable secondary market and became nearly untradeable long before the company’s collapse.

 

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

I want to extend a tremendous thank you for your dedication, professionalism, hard work and patient demeanor through this challenging time. It was enjoyable interacting with everyone on your team, this certainly helped while dealing with the situation and working towards resolution.

Dan M.

LATEST NEWS AND ARTICLES

June 24, 2025
Dr. Cash Sentenced for Defrauding Retirees

Terrence Chalk, an unregistered investment advisor who operated under the alias “Dr. Cash,” has been sentenced to three years in prison for orchestrating a fraudulent investment scheme that defrauded millions from unsuspecting victims.

June 23, 2025
FINRA Fines AAG Capital for RILA Exchange Violations

The Financial Industry Regulatory Authority (“FINRA”) has fined AAG Capital $100,000 and ordered the firm to pay nearly $39,000 in restitution after finding it violated Regulation Best Interest (“Reg BI”) by recommending costly registered index-linked annuities (“RILAs") to retail clients in unsuitable product excha...

June 19, 2025
SEC Charges Former Real Estate CEO in $46 Million Investment Fraud Scheme

The Securities and Exchange Commission (“SEC”) has charged Kenneth Mattson, former CEO of LeFever Mattson, with orchestrating a $46 million investment fraud scheme that targeted approximately 200 investors, many of them retired senior citizens
from his church community in California.