Articles Tagged with Coastal Equities

Stoltmann Law Offices is representing GWG L-Bond investors from across the country in FINRA arbitration claims against the brokerage firms responsible for soliciting the investors to put their hard-earned money into the speculative bonds offered by GWG Capital.

There are thousands of investors in the GWG-Bonds and very few have actually filed FINRA claims.  Many are waiting on the sidelines to see what happens with the ongoing Chapter 11 process while others are relying on information being peddled by the brokers and firms who sold them GWG, who continue to (mis)represent the alleged value of GWG Holdings, promising a full return of investor funds.  This is false and at this point, its fraud.

Let’s examine some of the representations advisors and their firms continue to make to their clients. First, GWG has an interest in FOXO Technologies (symbol FOXO). In September, FOXO went public in a SPAC deal and its stock is down over 90% since it hit the market.  FOXO has a current market capitalization of only $38.6 million, making it a micro-cap penny stock. Any representations that L-Bond investors will be saved as a result of any FOXO interest is clearly false as the stock continues to crater.

A former investment advisor, Michael Donnelly, was sentenced to 99 months in prison after running a scam that defrauded elderly and unsophisticated clients out of $2 million. Donnelly allegedly spent the money on car payments, private school tuition for his children and other personal expenses. The civil charges were settled with the Securities and Exchange Commission (SEC) last October and Donnelly agreed to pay back the $2 million he stole. He had been banned for a lifetime from the securities industry previously. A federal judge in Philadelphia then sentenced him to 99 months in prison to be followed by three years of supervised release after accepting his guilty plea to one count of wire fraud and one count of securities fraud. Donnelly had been president of Coastal Investment Advisors of Wilmington, Delaware, and Coastal Equities, an affiliated broker-dealer during the period of the fraud. He also held top roles at the RIAs Donnelly Steen & Company and Donnelly Advisors Group. He siphoned elderly client funds and then issued bogus account statements and trade confirmations to cover the theft. He allegedly ran the scheme from November 2007 until 2014. The complaint against him also claimed he made presentations before elderly investors, promising them that he could net them better interest rates than what banks were paying.

Stoltmann Law Offices is investigating Coastal Equities broker, Douglas Russell Bevers. According to his Financial Industry Regulatory Authority (FINRA) BrokerCheck page, Bevers has four customer complaints against him. One customer complaint alleges that he participated in unauthorized trading, and another, in 2003, alleges that Mr. Bevers churned his account. Churning is when a broker excessively trades in a client account, for the sole purpose of generating commissions for himself. Frequent buying and selling of securities that does little to meet the client’s investment objective can be evidence of churning. Also in 2003, Bevers was “permitted to resign” from Janney Montgomery Scott brokerage firm in Philadelphia, Pennsylvania, for violating firm policy.

Mr. Bevers was registered with Penn Mutual Equity Services, Inc. from January 1973 until September 1974, Fin-Plan Investments from October 1972 until October 1974, Merrill Lynch from July 1976 until October 1978, Elkins & Co. from November 1978 until November 1981, Janney Montgomery Scott from November 1981 until June 2003, and Boenning & Scattergood, Inc. from July 2003 until February 2014. He is currently registered with Coastal Equities, Inc., in Wilmington, Delaware, and has been since Febaruary 2014.

Douglas Russell Bevers’ former firm can be sued for failing to properly supervise him while he was employed there. If you invested money with Douglas Russell Bevers, please call our securities law office, based in Chicago, at 312-332-4200 to speak to an attorney. The call is free with no obligation. We concentrate on suing firms such as Boenning & Scattergood, and Coastal Equities for the illegal activities of their registered representatives like Douglas Russell Bevers. We sue them for allowing brokers like him to churn accounts and to make trades that are not authorized by you, the client.

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