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National investment fraud lawyers KlaymanToskes announces that it filed a securities arbitration claim on behalf of a retired special education teacher against National Securities Corporation to recover damages sustained in GWG Holdings, Inc. (OTCMKTS: GWGHQ) L Bonds.
According to the claim, National Securities Corporation’s broker Mark Cline recommended that a Florida retiree invest in GWG L Bonds, which was an unsuitable, highly speculative, illiquid private placement. Incredibly, less than 3 years after the brokerage firm represented the GWG L Bonds as a safe, low-risk investment, GWG halted its interest and principal payments. Shortly thereafter, in April 2022, GWG filed for Chapter 11 bankruptcy, and the Company along with its network of broker-dealers are subject to a SEC investigation into the sales of L Bonds.
According to securities attorney Lawrence L. Klayman, Esq., “Brokerage firms had a responsibility to investigate and monitor red flags associated with GWG and its L Bonds to protect their customers. The firm’s failure to conduct due diligence caused our client to incur substantial harm, and the firm is liable in a FINRA arbitration claim.”
The sole purpose of this release is to investigate on behalf of our clients who purchased GWG L Bonds through full-service brokerage firms, including National Securities Corporation. Former and current customers of full-service brokerage firms such as National Securities Corporation with losses in excess of $75,000, and those who have information relating to the manner in which their accounts were handled, are encouraged to contact Lawrence L. Klayman, Esq. at 1 (888) 997-9956.
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 more than $230 million for investors in FINRA arbitrations. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico