Erez Law is currently investigating Coastal Equities brokers across the country who recommended their clients invest in GWG Holdings Inc., an unsuitable alternative investment.
According to public records, a former client of Coastal Equities filed a FINRA arbitration alleging investment losses related to the illiquid investments in GWG Holdings Inc. The client is seeking $900,000 in damages.
It is alleged that Coastal Equities brokers recommended the GWG Holdings Inc. L Bonds as low-risk, safe investments. In reality, the speculative investments were high-risk and illiquid, meaning they could not be easily sold or exchanged for cash without a substantial loss in value.
GWG Holdings Inc.’s primary asset was Beneficient, which dropped in value from $15 at opening to $0.42 as of January 11, 2024.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Coastal Equities may be liable for investment or other losses suffered by its customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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