National investment fraud lawyers KlaymanToskes is investigating former Landolt Securities broker Anthony B. Liddle (CRD# 5478479) following his permanent bar from the securities industry and SEC charges for allegedly defrauding $1.9 million from investors and misrepresenting the risk of GWG L bond investments.
Liddle was registered with Landolt Securities, Inc. from 2020 to 2022 and with Western International Securities from 2012 to 2020 in Oshkosh, WI. Liddle also did business as Prosper Wealth Management in Wausau, WI, a now defunct firm whose SEC registration status has been terminated in the state of Wisconsin.
Customers who suffered investment losses with Anthony Baker Liddle at Landolt Securities, Western International Securities, and/or Prosper Wealth Management in Oshkosh, WI are encouraged to contact attorney Lawrence L. Klayman at (888) 997-9956 or lklayman@klaymantoskes.com to learn about recovery options. All consultations are free and confidential.
On June 14th, 2022, FINRA’s Department of Enforcement entered into an Acceptance, Waiver, and Consent (“AWC”) with Anthony B. Liddle, disclosing that the former broker borrowed over $1.8 million from at least 13 of his customers while he was associated with Landolt Securities and Western International Securities. According to the AWC, Liddle failed to respond to FINRA’s requests to produce information and to appear for on-the-record testimony in connection with the regulator’s investigation.
On August 4th, 2022, the Wisconsin Department of Financial Institutions, Division of Securities issued a cease and desist order permanently barring Liddle from registering in the state of Wisconsin in any capacity. The order included a civil penalty of $25,000 and restitution of over $1.6 million to be paid to investors who suffered losses. During the Division’s investigation, Liddle provided examiners with promissory notes he alleged were for “loans” he received from his customers. However, all of the investors interviewed during the investigation denied making loans to Liddle, or his entity Prosper Wealth Management, and either denied or could not recall signing the promissory notes.
On January 24th, 2023, the Securities and Exchange Commission (“SEC”) filed a civil action alleging that from at least June 2019 through May 2022, Liddle “made material misrepresentations about the use of client funds and the risk of client investments to at least 13 advisory clients, many of whom are senior citizens.”
The complaint revealed that Liddle falsely claimed his clients’ portfolios had become less safe and needed to be replaced with other securities he claimed were lower risk. Liddle’s customers liquidated their securities holdings and sent funds to Prosper Wealth Management with the intention of reinvesting in the “lower risk” securities. However, the “lower risk” securities included GWG L Bonds and other investments rated as high risk.
Liddle confirmed with the investors that he had made the recommended investments, however, the SEC’s investigation disclosed that he had never purchased any of the securities and instead misappropriated the funds to fabricate “interest returns” in order to continue his “fraudulent scheme.”
GWG L bonds were marketed as safe and low-risk investments that were instead unrated, illiquid, high risk, and potentially speculative. According to the SEC complaint, “Liddle knew, or was recklessly unaware, that GWG disclosed in their offering document used for the fourth L Bond offering (the ‘2020 Prospectus’) that investing in L Bonds involved a ‘high degree of risk, including the risk of losing [one’s] entire investment[,]’ and an L Bond investment ‘may be considered speculative’.”
According to the SEC’s findings, GWG further disclosed on the second page of the 2020 Prospectus, “L Bonds are only suitable for persons with substantial financial resources and with no need for liquidity in this investment.”
The following is a timeline summary for GWG L bonds:
Liddle allegedly lied to certain clients about the liquidity and availability of GWG L Bonds during both the GWG 2021 Suspension and the GWG 2022 Suspension. In one example included in the SEC’s complaint, in June 2021, “Liddle lied to an 81 year old advisory client when he told her that her $40,000 was used to invest in GWG L Bonds, during the GWG 2021 Suspension of L Bond sales. Liddle never bought the L Bonds.”
However, “following Liddle’s payment of purported $185 monthly investment return payments, that in fact came from co-mingled victim funds, Liddle advised the same client in approximately April 2022 to exit an annuity due to high risk and invest it again in a ‘similar opportunity’ to the L Bonds. The client, as a result of Liddle’s lies, withdrew from the annuity policy in April 2022 and had to pay an early withdrawal penalty of nearly 20% of the policy’s value.”
According to the SEC complaint, Anthony Baker Liddle is charged with violating the following securities laws:
KlaymanToskes is currently representing investors who sustained significant losses in GWG Holdings, Inc. (OTCMKTS: GWGHQ) L Bonds and is investigating the misappropriation of investor funds.
Investors are encouraged to learn more about GWG L Bond Investment Recovery Options and contact investment loss attorney Lawrence L. Klayman to discuss legal options at (888) 997-9956 or lklayman@klaymantoskes.com. Consultations are free and 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.
Investors can also learn more about GWG L Bond investment losses in our related post, GWG L Bonds Commonly Asked Questions,
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.
Lawrence L. Klayman, Esq.
888-997-9956