Articles Tagged with Cabot Lodge Securities

The securities attorneys at Chicago-based Stoltmann Law Offices are representing investors in FINRA arbitration actions against multiple brokerage firms that recommended GWG-L-bonds to their clients. Our investigation into GWG, which includes monitoring and being involved in the Chapter 11 bankruptcy, is focused on two issues: First, GWG L-Bonds were speculative, high risk, unrated debt instruments. One of the biggest issues with this bond program is, the bondholders were subordinate to hundreds of millions of dollars other debt.  The debt owed by GWG in these bonds are not the first priority to be paid back by the company on the “capital stack”.  These were very high risk investments, so unless that was made clear to you by your financial advisor, you may have a claim to pursue for misrepresentations and commissions and for recommending an unsuitable investment.  Either of these are actionable.

The other main issue here from the brokerage firm perspective is the failure to perform reasonable due diligence. Although 160 brokerage firms sold GWG Financial, this is actually a super-minority, roughly 5%, of all brokerage firms nationwide. In reality, very few firms approved GWG for sale to their customers.  GWG was allowed to borrow up to 90% of its listed assets. Its assets are almost all illiquid and subject to “fair valuation” which is an extremely dangerous financial situation for investors.  Big firms like Merrill Lynch and Morgan Stanley don’t go anywhere near unrated speculative bonds like this. But a lot of firms do because GWG paid brokers massive 8% commissions to sell these bonds which were the financial life-blood of GWG.  Even through the US government began investigating GWG in October 2020, and brokerage firms still continued to sell them.  As early as march 2020, GWG was reporting publicly about “several material weaknesses” with respect to the company’s accounting processes.  By 2020, there were more Red Flags about GWG than a Soviet May-Day parade and yet brokerage firms continues to sell it, and one reportedly BOOSTED sales.

It was reported this week that Centaurus Financial, with 640 brokers nationwide, actually increased the amount individual investors could invest in GWG from $100,000, to $150,000. Brokers went on the sales push to recommend their clients increase their investment in the GWG L-Bonds in April 2020, after GWG reported material issues with accounting and after it entered into a highly questionable transaction with the Beneficient Company, alleged now to have been securities fraud.

AdobeStock_35532974-1-300x200They are, through the Financial Industry Regulatory Authority (FINRA) arbitration process. Did you lose money because of Robert “Rusty” Tweed? If so, the attorneys at Stoltmann Law Offices may be able to help you recover your investment losses on a contingency fee basis. Robert Tweed allegedly obtained more than $1.6 million from his retail customers through a false and misleading private placement memorandum (PPM) he used to offer and sell interests in his Athenian Fund LP, a pooled investment fund he both created and controlled, according to a recent Disciplinary Proceeding with FINRA. He also allegedly dragged and circulated the PPM, which misrepresented and failed to disclose material information to investors, and 23 customers invested in the fund without the complete and accurate information between November 2009 and March 2010. These are against securities rules and regulations.
According to his online FINRA BrokerCheck report, Robert Tweed was registered with Securities America, Wealth Resource Capital Corp, Laguna Securities, InterSecurities, National Planning Corp, United Securities Alliance, Capwest Securities, MAM Securities, and Concorde Investment Services in San Marino, California from August 2011 until November 2015. He his currently registered with Cabot Lodge Securities in San Marino, California and has been since October 2015. He has twelve customer disputes against him, four of which are currently pending.
We are securities attorneys who bring arbitration claims against firms such as Cabot Lodge Securities on a contingency fee basis. Please call 312-332-4200 today to find out how you may be able to bring a claim against Cabot Lodge for Robert Tweed losses. The call to us is free with no obligation. There is a statute of limitations on most of these cases.

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