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

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