NEW YORK, NY, USA, May 9, 2024 /EINPresswire.com/ — National investment loss and securities attorneys KlaymanToskes continues investigating Emerson Equity on behalf of its clients, after the brokerage firm’s unsuitable recommendations of GWG L Bonds caused a customer to suffer up to $500,000 in damages. Customers of Emerson Equity who purchased GWG L Bonds and suffered investment losses should contact the law firm immediately at 888-997-9956.
KlaymanToskes reports the law firm has filed a FINRA arbitration claim (no. 24-00883) against Emerson Equity, on the behalf of an investor who is seeking to recover up to $500,000 in investment losses, in connection with being recommended to invest in unsuitable and illiquid GWG L Bond investments.
According to the lawsuit filed by KlaymanToskes, the customer wanted to create a conservative position in his portfolio that would generate income while preserving his principal. The customer invested in GWG L Bonds based on material representations made by Emerson Equity that the L Bonds would provide monthly income and the return of his principal at maturity. Emerson Equity further claimed that the interest rate was guaranteed and that there was no market risk as the L Bonds did not trade on the stock market.
KlaymanToskes’ investigation found that Emerson Equity, as the managing broker-dealer for GWG’s offering, ignored a multitude of red flags associated with GWG for several years, which rendered the L Bonds unsuitable and very high-risk, but especially for an investor seeking low risk, conservative investments.
Additionally, Emerson Equity and its financial advisors had a conflict of interest in the sale of the L Bonds, as the firm and its representatives received commissions ranging from 0.75% to 5.00% of the principal amount of L Bonds sold, depending on the L Bonds’ maturity date, as well as other forms of compensation.
In April 2022, GWG Holdings, Inc. filed for bankruptcy, suspending their monthly dividends and leaving investors without access to their principal. Most recently, on January 29, 2024, financials were filed with the bankruptcy court by the GWG Wind Down Trustee which confirmed that L bondholders will only receive a small fraction of their investments from the bankruptcy. Accordingly, it is in bondholders’ best legal interest to maximize their recovery of losses by filing FINRA arbitration claims against the brokerage firms and financial advisors who sold these unsuitable products, such as Emerson Equity.
Current and former customers of Emerson Equity who suffered investment losses in GWG L Bonds and/or any other investments are encouraged to contact attorney Steven D. Toskes, Esq. at (888) 997-9956 or by email at investigations@klaymantoskes.com in furtherance of our investigation.
About KlaymanToskes
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation 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.
Contact
Steven D. Toskes, Esq.
KlaymanToskes, P.A.
+1 888-997-9956
investigations@klaymantoskes.com