Securities Arbitration Lawyer Blog
Iorio Altamirano LLP, a securities arbitration law firm based in New York, NY, is investigating potential securities arbitration claims against Western International Securities, Inc. and its Pennsylvania-based broker, Heath Goldstein, for its sale of L Bonds issued by GWG Holdings, Inc. Western International Securities was part of a network of broker-dealers who sold the speculative, high-risk, and illiquid GWG L Bonds to retail investors.
GWG Holdings, Inc., which stopped making interest and maturity payments to GWG L Bond investors in January 2022, filed for Chapter 11 bankruptcy in April 2022.
According to court filings, in the four years before the bankruptcy filing, Western International Securities received at least $3 million in commissions from GWG Holdings for selling L Bonds to retail investors, and the firm sold approximately $13.3 million in L Bonds to retail investors between June 2020 and January 2022.
Earlier this year, the law firm filed a six-figure FINRA arbitration claim against Western International Securities connected with the sale of L Bonds. According to the claim, Western International and its broker, Heath Goldstein, allegedly gave unsuitable recommendations to a permanently disabled quadriplegic, who is 52 years old, by advising her to invest a significant portion of her irreplaceable financial assets into speculative, high-risk, illiquid, and unrated L Bonds issued by GWG Holdings, Inc. (“GWG Holdings”).
The FINRA arbitration complaint comes after the United States Securities and Exchange Commission (“SEC”) filed a lawsuit against Western International Securities and several of its brokers in federal court in June 2022 concerning the sale of L Bonds to retail customers. The firm is accused of failing to perform due diligence regarding the inherent risks associated with L Bonds issued by GWG Holdings, Inc.
The complaint alleges that Western International Securities’ brokers misunderstood important issues regarding GWG Holdings, Inc. and the GWG L Bonds, including that GWG significantly changed its business model beginning in 2018 and that GWG L Bonds were not directly collateralized by life insurance policies. According to the complaint, the brokers did not understand the product they were selling because Western International Securities did not provide them with updated and adequate training or with the due diligence report that it had commissioned to be completed. As a result, the brokers allegedly recommended GWG L Bonds to retail customers without a reasonable basis to believe that the investments were in the customers’ best interest.
Investors who purchased GWG L Bonds through Heath Goldstein, Western International Securities, or any other broker-dealer are encouraged to contact Iorio Altamirano LLP (gwglawyer.com) for a free and confidential consultation and to review their legal rights. We can review and analyze potential claims and advise individuals of their legal rights without obligation or cost.
Heath Goldstein (CRD No. 3031995)
Heath Goldstein has 22 years of experience in the securities industry and has been registered with Western International Securities, Inc. as a broker since June 2016.
Mr. Goldstein is also a registered investment advisor with Western International Securities and 1st Financial Investment, Inc, an investment advisory firm he owns with family members in Clark’s Summit, PA.
According to his public disclosure report, Mr. Goldstein has been the subject of at least nine customer disputes, including six disputes related to securities issued by GWG Holdings.
About the L Bonds & Brokerage Firm Liability
An L bond is a specialty high-yield bond created and issued by GWG Holdings. The L Bonds are speculative, high-risk, and illiquid securities that were sold as alternative investments.
Brokerage firms are required to make investment recommendations that are in the best interest of their customers. Financial advisors also have an obligation to be truthful and disclose all material facts and risks to customers when making investment recommendations. Firms and brokers must also conduct reasonable due diligence on the securities they offer before recommending them to customers. Iorio Altamirano LLP is investigating whether Mr. Goldstein and Western International Securities met these obligations in connection with their sale of L Bonds to retail investors.
About Iorio Altamirano LLP
Iorio Altamirano LLP is a securities arbitration law firm in New York, NY. We represent investors nationwide and vigorously pursue FINRA arbitration claims on behalf of investors to recover investment losses.
We have over 20 years of combined experience as securities arbitration lawyers and have helped investors recover investment losses in over 1,000 cases. Our firm will file a FINRA securities arbitration claim on your behalf on a contingency fee basis to try to recover your losses. If we do not obtain a recovery, you do not owe us a legal fee.
If you have invested in GWG L Bonds due to a recommendation by Heath Goldstein or Western International Securities, contact securities arbitration lawyers August Iorio at august@ia-law.com or Jorge Altamirano at jorge@ia-law.com. Alternatively, you may reach the firm by phone toll-free at (855) 430-4010.
See Also:
GWG Bankruptcy Update (March 14, 2023): GWG Appears to be Headed Toward Liquidation
Broker-Dealers Sold GWG L Bonds Using Aggressive and Misleading Marketing
“GWG Was a Classic Ponzi Scheme” – Official Committee of Bondholders of GWG Holdings, Inc.