National investment fraud lawyers KlaymanToskes continues its investigation of Michael Joseph Whitaker (CRD# 6316100) following the filing of FINRA arbitration claim 22-01644 against Newbridge Securities Corporation’s The Villages, FL branch, in connection with the unsuitable sale of GWG L Bonds (OTCMKTS: GWGHQ).
According to the claim, filed on the behalf of a disabled retiree and Navy Veteran, Whitaker and Newbridge Securities Corp. hosted a luncheon seminar in the customer’s The Villages retirement community (located Northwest of Orlando, FL). The customer alleges that while attending the luncheon, Whitaker promoted his team’s investment services and claimed to design portfolios specifically for retirees.
The customers, being retired, were recommended to invest in GWG L Bonds by Whitaker and Newbridge Securities Corp while attending the seminar. Since their initial investment in 2020, GWG Holdings, Inc. stopped paying interest and principal payments to investors.
GWG Holdings, Inc. filed for chapter 11 bankruptcy in April 2022. However, investors may still pursue FINRA arbitration claims against the brokers/financial advisors, and firms, who unsuitably sold illiquid GWG L Bonds to their customers. Investors are encouraged to learn more about GWG L Bond Investment Recovery Options.
Investors that suffered losses in GWG L Bonds are encouraged to immediately contact Lawrence L. Klayman, Esq. for a free consultation at (888) 997-9956 or by email at lklayman@klaymantoskes.com to discuss legal options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
GWG L bonds were marketed as safe and low-risk investments that were instead unrated, illiquid, high risk, and potentially speculative. GWG Holdings, Inc. disclosed on the second page of its 2020 Prospectus, “L Bonds are only suitable for persons with substantial financial resources and with no need for liquidity in this investment.”
According to FINRA BrokerCheck, Michael J. Whitaker is currently facing $337,000 in pending customer complaints and a pending criminal charge for witness tampering and battery. In addition to the GWG L Bonds sold, Newbridge and Whitaker also recommended the couple invest in additional alternative investments, such as the Red Oak Capital Fund IV.
According to securities attorney Lawrence L. Klayman, Esq., “The investments recommended to our retired clients by Michael Whitaker and Newbridge were highly concentrated in illiquid, alternative investments that were unsuitable based on the customers’ financial needs and interests. Brokerage firms and their financial professionals must consider each client’s best interests before making investment recommendations. In addition to having a responsibility to conduct due diligence on any investment product sold to customers, Newbridge and Whitaker also had a fiduciary duty to avoid over-concentrating their customers in any one security or asset class.”
KlaymanToskes has been contacted by several customers of Michael J. Whitaker who have suffered losses in GWG L Bonds. Investors that suffered losses due to investment recommendations from Michael J. Whitaker or any other broker/advisor may be entitled to a financial recovery.
Contact attorney Lawrence L. Klayman, Esq. at (888) 997-9956 or lklayman@klaymantoskes.com for a free consultation to discuss recovery options. Every case is taken on a contingency basis, meaning we do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lklayman@klaymantoskes.com
www.klaymantoskes.com