Iorio Law Takes Action Against Arete Wealth Management for GWG Bonds
Iorio Law Takes Action Against Arete Wealth Management
Iorio Law PLLC has initiated a substantial six-figure FINRA arbitration claim against Arete Wealth Management on behalf of a retail investor. The allegation focuses on the improper recommendation and sale of GWG L Bonds. These bonds are considered speculative, high-risk, and illiquid securities that were sold without sufficient due diligence and in violation of regulatory obligations.
Allegations Against Arete Wealth Management
The Statement of Claim highlights that Arete inadequately disclosed the significant risks associated with GWG L Bonds. Furthermore, the firm allegedly recommended these products despite the investor's risk profile, which raises serious concerns regarding their duty to act in the investor's best interest.
Context of the Claim
This claim comes at a time when a FINRA arbitration panel recently ordered Arete Wealth Management to pay $280,000 to another investor relating to GWG L Bonds—marking the second award against the firm for similar issues. The complaints suggest a systemic problem with how various brokerage firms handled the sale of these high-risk investments.
Statements from Legal Representation
August M. Iorio, the founder of Iorio Law PLLC, stated, "GWG L Bonds were unsuitable for many retail investors. Evidence indicates that brokerage firms nationwide failed in their due diligence or made inappropriate recommendations to their clients." Iorio further noted that Arete is not the only firm facing scrutiny, as many others that sold these bonds are experiencing similar claims.
Representation for Investors
Iorio Law PLLC is actively representing investors against multiple brokerage firms involved with GWG L Bonds, including Emerson Equity, Western International Securities, and Centaurus Financial. Iorio has successfully recovered significant sums for investors, totaling over $3.5 million nationally.
Concerns Over GWG L Bonds
The GWG L Bonds, which were marketed as safe income-generating investments, turned out to be speculative and posed a serious risk of losing the principal. Many investors have suffered substantial losses due to the bankruptcy filed by GWG Holdings, Inc. in 2022, leading to an urgent need for investors to protect their rights.
Importance of Prompt Action
Investors are encouraged to act quickly. Securities arbitration cases are subject to strict regulations concerning eligibility and time limits. Those who invested in GWG L Bonds should seek guidance from experienced attorneys as soon as possible to safeguard their rights.
About Iorio Law PLLC
Iorio Law PLLC is a nationwide securities arbitration law firm located in New York City. The firm specializes in representing investors against financial institutions and brokerage firms. Under the leadership of attorney August M. Iorio, the firm has successfully recovered nearly $100 million for investors through various legal avenues.
Contact Information
The firm can be reached directly for inquiries. For assistance, please contact: August M. Iorio at Iorio Law PLLC, One World Trade Center, 85th Floor, New York, NY 10007, Tel: (646) 330-4624. Visit their official website for more information.
Frequently Asked Questions
What is the nature of the claim filed by Iorio Law against Arete Wealth Management?
The claim alleges that Arete improperly sold GWG L Bonds without adequate due diligence, failing to comply with regulatory obligations.
Why are GWG L Bonds considered high-risk investments?
GWG L Bonds are deemed high-risk due to their speculative nature and the substantial likelihood of loss of principal, particularly after GWG Holdings' bankruptcy.
How can investors protect their rights regarding GWG L Bonds?
Investors are advised to consult with experienced attorneys to understand their rights and options, especially since arbitration claims have strict timelines.
Has Iorio Law represented other investors in similar cases?
Yes, Iorio Law PLLC has represented several investors against multiple brokerage firms regarding GWG L Bonds and related claims.
What has been the success rate of Iorio Law in recovering funds for investors?
The firm has successfully recovered nearly $100 million for investors, demonstrating a strong track record in securities cases.
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