Erez Law is currently investigating Western International Securities, Inc. and 1st Financial Investment, Inc. broker Heath Goldstein (CRD# 2147679) regarding GWG Holdings Inc. investment losses. He has been registered with Western International Securities, Inc. in Clarks Summit, Pennsylvania and with 1st Financial Investment, Inc. in Clark’s Summit, Pennsylvania since 2016. Previously, he was registered:
- Calton & Associates, Inc. in Clarks Summit, Pennsylvania from 2014 to 2016
- Kalos Capital, Inc. in Clark’s Summit, Pennsylvania from 2011 to 2014
- WFG Investments, Inc. in Clarks Summit, Pennsylvania from March to July 2011
- Berthel, Fisher & Company Financial Services, Inc. in Clark’s Summit, Pennsylvania from 2004 to 2011
Heath Goldstein Customer Complaints
He has been the subject of 13 customer complaints between 2017 and 2023, one of which was denied, according to his CRD report:
August 2023. “Out of pocket loss from the GWG L Bond Investment.” The customer sought $74,000 in damages, and the case was settled for $20,000.
August 2023. “
May 2023. “1.) Unsuitable & Misleading Investment Recommendation; 2.) Misrepresented & Omitted Material Facts & Risks; 3.) Failure to conduct Reasonable Due Diligence; 4.) Negligence; 5.) Breach of Fiduciary Duty; and 5.) Failure to Supervise.” The customer sought $30,000 in damages, and the case was settled for $13,500. The complaint was regarding government debt.
April 2023. “1.) Breach of Fiduciary; 2.) Negligence & Negligent Misrepresentation; 3.) Breach of Contract; 4.) Failure to Supervise; and 5.) Negligence — Violation of Regulation Best Interest.” The customer sought $50,000 in damages, and the case was settled for $12,000. The complaint was regarding direct investment losses.
March 2023. “In the original written complaint, Recovery and Reimbursement of Losses incurred as a result of investment in GWG L Bonds. In the arbitration lawsuit, negligence, misrepresentation & omission of material facts, breach of fiduciary duty, failure to supervise, violation of both federal & state securities lawlaw, violation of both federal & state common law.” The customer is seeking $400,000 in damages.
January 2023. “Suitability, False, & Misleading Statements regarding bond investment and annuity.” The customer is seeking $172,800 in damages. The complaint was regarding variable annuities, corporate debt, and direct investments.
December 2022. “1.) Breach of fiduciary obligations / duties; 2.) Breach of Contract; 3.) Negligence / professional negligence; 4.) Failure to Supervise; 5.) Violation of state and federal rules and regulations; 6.) Agency, respondent superior and control person liability; 7.) General equitable principals that apply in arbitration.” The customer sought $20,000 in damages, and the case was settled for $12,000. The complaint was regarding corporate debt and direct investments.
November 2022. “1.) Violations of Sections 10(b) and 20(a) of the 1934 Act [15 U.S.C. 78j(b) and 78t(a)] and Rule 10b-5 Thereunder [17 C.F.R. 240.10b-5]; 2.) Violations of the Pennsylvania Unfair Trade Practices and Consumer Protection Law [73 P.S. 1-201 et seq.]; 3.) Violations of the Pennsylvania Securities Act of 1972, [70 P.S. 1-101 et seq.]; 4.) Breach of Fiduciary Duty; 5.) Common Law Fraud; 6.) Negligence, Including Negligent Failure to Supervise; and 7.) Breach of Contract.” The customer sought $288,280 in damages, and the case was settled for $81,916.35. The complaint was regarding corporate debt and direct investments.
July 2022. “Client wrote a letter to rep’s office regarding his investment in GWG Holdings L Bonds inquiring why rep never contacted the client when GWG suspended its interest payments. Client further alleged that rep sold the product as a very safe investment. Client’s Letter also states that investment was purchased in 2020, however after further investigating client purchased the investment in 2018. There is no record of any additional investment in 2020. After client’s written complaint and since the broker/dealer firm took no action, client then decide to file an arbitration lawsuit against the broker/dealer firm only for damages and recovery of investment. Client alleges violations of Section 10(b) and 20(a) of the 1934 Act [15 USC 78j(b) and 78t(a)] and Rule 10b-5 Thereunder [17 CFR 240.10b-5]; violations of the Commonwealth of Pennsylvania Unfair Trade Practices and Consumer Protection Law [73 PS 1-201 eq seq.]; violations of the Commonwealth of Pennsylvania Securities Act of 1972 [70 PS 1-101 eq seq.]; Breach of Fiduciary Duty; Common Law Fraud; Negligence; Failure to Supervise; and Breach of Contract.” The customer sought $100,000 in damages, and the case was settled for $40,000. The complaint took place while he was registered with Western International Securities, Inc. and 1st Financial Investment, Inc. and was regarding corporate debt and direct investments.
June 2022. “Violations of Sections 10(b) and 20(a) of the 1934 Act [15 U.S.C. 78j(b) and 78t(a)] and Rule 10b-5 Thereunder [17 C.F.R. 240.10b-5; Violations of the Pennsylvania Unfair Trade Practices and Consumer Protection Law [73 P.S. 1-201 et seq.]; Violations of the Pennsylvania Securities Act of 1972, 70 P.S. 1-101 et seq.; Breach of Fiduciary Duty; Common Law Fraud; and Negligence; Breach of Contract.” The customer sought $129,209.82 in damages, and the case was settled for $30,000. The complaint took place while he was registered with Western International Securities, Inc. and 1st Financial Investment, Inc. and was regarding fixed annuities, direct investments, and equity OTC.
November 2019. “Violations of (1) Sections 10(b) and 20(a) of the 1934 Act [15 U.S.C. 78j(b) and 78t(a)] and Rule 10b-5 Thereunder [17 C.F.R. 240.10b-5]; (2) Sections 12 of the 1933 Act; (3) Pennsylvania Unfair Trade Practices and Consumer Protection Law [73 P.S. 1-201 et seq.]; and (4) Pennsylvania Securities Act of 1972, 70 P.S. 1-101 et seq. Breach of Fiduciary Duty; Common Law Fraud; Negligence – Failure to Supervise; and Breach of Contract.” The customer sought $125,599 in damages, and the case was settled for $38,199.99. The complaint was regarding real estate securities and equity index annuities and took place while he was registered with Canton & Associates, Inc.
February 2018. “The Unsuitable Sale of an Alternative Investment in Gas Drilling Partnerships; Respondeat Superior Liability; Lack of Supervision; Violations of Sections 10(b) and 20(a) of the 1934 Act [15 U.S.C. 78j(b) and 78t(a)] and Rule 10b-5 Thereunder [17 C.F.R. 240.10b-5; Violations of the Pennsylvania Unfair Trade Practices and Consumer Protection Law [73 P.S. 1-201 et seq.]; Violations of the Pennsylvania Securities Act of 1972, 70 P.S. 1-101 et seq.; Breach of Fiduciary Duty; Common Law Fraud; Negligence; Breach of Contract; Punitive Damages.” The customer sought $10,000 in damages, and the case was settled for $51,000. The complaint was regarding oil and gas losses and took place while he was registered with Berthel, Fisher & Company Financial Services, Inc., Kalos Capital, Inc., and Canton & Associates, Inc
August 2017. “Client seeks Alleged Compensatory Amount plus Pre & Post Arbitration Award Interest. Reimbursement of all surrender charges to liquidate the 2 current Fixed Annuity products, attorney costs, and filing fees.” The customer sought $80,579 in damages, and the case was settled for $45,000. The complaint took place while he was registered with Kalos Capital, Inc. and Canton & Associates, Inc. and was regarding fixed and variable annuities, LP interests, and oil and gas investment losses.
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, Western International Securities, Inc. and 1st Financial Investment, Inc. may be liable for investment or other losses suffered by Heath Goldstein’s 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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