Erez Law is investigating claims regarding Jason Price Lamb (CRD #3248356, Hermitage, Tennessee). Lamb recently entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) in which he was fined $10,000 and suspended from association with any FINRA member in any principal capacity for two months. See FINRA Case #2012034936003. Lamb has been registered with Center Street Securities since June 2009.
FINRA found that from approximately March 2012 through February 2013 Lamb failed to supervise certain sales of GWG Renewable Secured Debentures, an illiquid and high-risk alternative investment, an illiquid and high-risk alternative investment, totaling approximately $770,000 to nine customers.
GWG Holdings, Inc., purchases life insurance policies on the secondary market at a discount to the face value of the policies. GWG then pays the policy premiums until the death of the insured, at which point it collects the face value of the policy. GWG intends to earn returns by collecting more upon the maturity of the policy than what it has paid out to purchase and maintain the policy. FINRA found that GWG had a limited operating history, was not yet profitable, and purchased most of the policies it owns with borrowed funds. In 2012, GWG began selling what it called Renewable Secured Debentures. The Debentures were speculative, high risk investments, in which investors could lost their entire investment, according to FINRA’s findings.
The findings stated that despite the presence of red flags, Lamb failed to take reasonable steps to ensure the debenture sales were suitable or had been accurately represented to customers. Lamb approved the debenture purchases without adequately considering whether those purchases were consistent with the customers’ investment objectives, risk tolerances, financial conditions, ages or liquidity needs. In entering into the AWC, Lamb neither admitted nor denied FINRA’s findings.
If you invested in GWG Renewable Secured Debentures or were a client of Lamb or Center Street Securities, Inc., who has suffered investment losses or financial irregularities, please contact Erez Law to explore your legal options. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies. To learn more, please call us at 888-840-1571 or complete our “contact form.”
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