Soreide Law Group has filed a FINRA arbitration on behalf of our clients (Claimants) against:
AUSDAL FINANCIAL PARTNERS, INC., and their registered representative, BRIAN WAYNE NAPIER (Brian W Napier) (Respondents).
The Claimants are retirees in their 80’s and according to the lawsuit, AUSDAL FINANCIAL PARTNERS’ broker, Brian W Napier, allegedly sold the Claimants $435,000 of GWG Holdings “L” Bonds. The Claimants allegedly were not looking to speculate and were looking for conservative investments to supplement their retirement income. The lawsuit alleges that on or about 2018, Brian W Napier began to concentrate the Claimants’ retirement accounts into GWG.
On April 20th, 2022, GWG Holdings filed Chapter 11 bankruptcy which could potentially wipe out the Claimants’ investment in GWG and a large portion of their retirement savings. There were significant red flag warnings that predated some of the sales of any of the GWG bonds to the Claimants by Respondents. The lawsuit alleges the following material items were not disclosed at anytime, include:
1. In 2018 and 2019, GWG consummated a series of transactions with Beneficient that resulted in a significant reorientation of its business. Beneficient’s management gained control over GWG, Beneficient became a wholly-owned subsidiary of GWG, and GWG’s business model changed. Specifically, GWG stopped acquiring life insurance policies and focused instead on Beneficient’s still developing business model. No market for L bonds exists.
2. L bonds are not rated by any rating agency.
3. GWG has a history of net losses and for the year ending December 31, 2019, GWG posted a net loss from operations of $79.6 million and negative operating cash flow of $142.8 million.
4. GWG uses the sale of L bonds to fund their own operations.
5. Multiple missed filing and reporting deadlines with the SEC.
6. L bond were high risk, illiquid and only suitable for customers with substantial financial resources.
7. GWG Holdings failed to make their January 15th, 2022 interest payment of $10,350,000 and to make their $3,250,000 principal payment on their “L” bonds and Respondent chose to completely ignore this red flag and never attempted to liquidate the Claimant’s bonds.
The lawsuit alleges that this investment was presented to the Claimants as a safe and secure investment to support their retirement income. This investment represents over one third of the Claimants’ life savings. The lawsuit is alleging that AUSDAL FINANCIAL PARTNERS and their registered representative, Brian W Napier of Indianapolis, Indiana’s actions have caused damages to the Claimants of approximately $435,000.00. The alleged claims against the Respondents are as follows: negligence, breach of fiduciary duty, and negligent supervision. It is anticipated that the Respondents will deny all allegations.
According to FINRA’s BrokerCheck, available to the public on FINRA’s website, Brian W Napier, has been in the securities industry for 19 years and has been listed with 7 firms. Napier is listed both as a broker and as a financial advisor. It is anticipated that Brian Napier and Ausdal will deny all allegations in the lawsuit.
If you’ve experienced investment losses, particularly in GWG Holdings “L Bonds,” purchased through AUSDAL FINANCIAL PARTNERS and/or their registered representative, Brian W Napier, of Indianapolis, Indiana, contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of you investment losses through a FINRA arbitration at: 888-760-6552.
Soreide Law Group has recovered tens of millions of dollars for their clients over the past 14 years. We represent our clients nationwide before FINRA on a contingency fee basis—no fee if no recovery.
