LANSING, MICHIGAN, USA, July 17, 2023/EINPresswire.com/ — National investment loss attorneys KlaymanToskes encourages customers of Moloney Securities who have suffered investment losses due to GWG L Bonds to contact the firm immediately at 888-997-9956.
KlaymanToskes reports the firm has filed a FINRA arbitration claim (no. 23-01950) against Moloney Securities on the behalf of an 81-year-old retiree who seeks to recover up to $500,000 in connection with being recommended to invest in unsuitable alternative investments known as GWG L Bonds.
The customer, who relies on social security, her pension and her investments for income to support her during her retirement years, entrusted Moloney Securities to recommend investments that would provide income with little risk to her principal. The speculative GWG L bonds were marketed by Moloney as great investments that would provide income and return her principal at maturity.
As the bonds were illiquid and unlisted, there were significant risks that were not disclosed to the investor. KlaymanToskes’ investigation found that Moloney Securities ignored a multitude of red flags associated with the GWG L Bonds for several years, which rendered the L Bonds unsuitable and very high-risk for any investor, but especially a retired widow looking for low risk, fixed income.
In January 2022, GWG stopped paying interest and principal payments to bondholders. Shortly thereafter in April 2022, GWG Holdings, Inc. filed for Chapter 11 bankruptcy. As a result, the customer remains worried about her retirement years due to no longer receiving payments from the bonds and not having access to her principal investment.
The claim seeks damages of up to $500,000 against Moloney Securities for unsuitable investment recommendations, failure to act in the best of the customer, misrepresentations and omissions, breach of fiduciary duty, breach of contract, failure to supervise, negligence and violation of the state and federal securities laws.
GWG L bondholders who suffered losses at Moloney Securities and/or any other brokerage firm, are encouraged to contact attorney Lawrence L. Klayman, Esq. at (888) 997-9956 or lawrence@klaymantoskes.com for a free and confidential consultation to discuss legal options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
About KlaymanToskes
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.
Contact
Lawrence Klayman
KlaymanToskes, P.A.
+1 888-997-9956
lawrence@klaymantoskes.com