GWG Holdings Inc. (OTCMKTS:GWGHQ)
LOS ANGELES, CA, USA, September 18, 2023/EINPresswire.com/ — National investment loss attorneys KlaymanToskes encourages customers of Emerson Equity who purchased GWG L Bonds from Tony Barouti or any other broker/advisor to contact the firm immediately at 888-997-9956.
KlaymanToskes reports that the firm has filed a $195,000 FINRA arbitration claim (no. 23-02390) against Emerson Equity and Los Angeles, California-based broker Tony Barouti in connection with his recommendation of unsuitable, illiquid, and speculative GWG L Bond investments.
The customer is an 81-year-old unsophisticated investor that sought conservative and low risk investments that would provide income and minimal risk to his principal. The customer relies on social security and his investments for income to support him during his retirement years, and entrusted Emerson Equity and Tony Barouti with making recommendations that were in his best interest.
While the customer made several inquiries relating to the risks of the GWG L Bonds, Barouti assured the customer that the interest rate was guaranteed and that there was no market risk, as the L Bonds did not trade on the stock market. Further, Barouti misrepresented to the customer that he would receive his principal back upon the bond’s maturity, in addition to monthly income.
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 for any investor, but especially a retiree seeking low risk, fixed income investments.
Additionally, Emerson Equity and financial advisors such as Tony Barouti had a conflict of interest in the sale of the L Bonds, as the firm and its representatives received a selling commission 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.
As the GWG L Bonds were illiquid and unlisted, there were significant risks that were not disclosed to the client. Barouti and his firm owed the customer various fiduciary duties. The investor seeks to recover $195,000 in compensatory damages as well as under-performance damages, attorney’s fees and costs, punitive damages, and any further relief the arbitration panel deems fit.
Customers of Tony Barouti and/or any other broker/advisor at Emerson Equity who suffered investment losses are encouraged to contact attorney Lawrence L. Klayman, Esq. at (888) 997-9956 or email@example.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.
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.