Soreide Law Group has filed a FINRA arbitration on behalf of our client (Claimant) against:
IFP SECURITIES, LLC (Respondent).
The Claimant resides in Florida with her husband who is retired. The Claimant’s husband has been a wealth management client of IPF Securities brokers, Andrew J. Keefer, and Antonio Luis Moreno, in Orlando, Florida, since 2020. The Claimant made the decision to transfer her IRA, which represented her life savings of approximately $1 million in 2021, to brokers, Keefer and Moreno. Keefer and Moreno are not named in the lawsuit.
The lawsuit alleges, within months of receiving the Claimant’s IRA, the Respondent concentrated $478,000, or roughly 50%, of the IRA into GWG Holdings in a 2, 3, 5, and 7 year bond. The lawsuit states that the Claimant has a conservative profile for her IRA and was looking to preserve her funds through retirement while generating a modest income. Allegedly, IPF Securities and their representatives presented to the Claimant and her husband that GWG Holdings bonds were safer than the stock market with little to no risk. The lawsuit alleges that the Respondent also reiterated on multiple occasions that GWG related investments are safe, secure, and asset backed and never mentioned that the company was losing hundreds of millions of dollars in bad investments.
On April 20th, 2022, only one year after the sale of the bonds to the Claimant, GWG Holdings filed Chapter 11 bankruptcy which could potentially wipe out a major portion of the Claimant’s life savings. In December 2021, 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. The lawsuit alleges the Respondent never attempted to liquidate any of the Claimant’s GWG bonds and it was unsuitable to concentrate 50% of the Claimant’s retirement funds into high risk unrated bonds.
The lawsuit alleges IFP SECURITIES and their registered representatives’ actions have caused damages to the Claimant of approximately $500,000.00. The lawsuit is alleging: negligence, breach of fiduciary duty, and negligent supervision. It is assumed the Respondent will deny all allegations.
GWG Holdings issued $1.6 billion of L bonds, which are backed by life settlements, and over 140 broker/dealers had agreements to sell the bonds.
According to a recent article in InvestmentNews, the SEC was focused on how GWG sales by advisors at IFP Securities, which has about 200 representatives and financial advisors, were made under the new rule of Regulation Best Interest, according to the executives, Bill Hamm, CEO of IFP Securities, and Keith Kessel, the firm’s chief compliance officer. According to the article the IFP Securities representatives were allegedly looking to increase clients’ exposure to other alternative investments, which typically have high commissions, including structured products.
In a video made last May but recently viewed by an InvestmentNews reporter, IFP Securities CEO Bill Hamm said that he was receiving questions from some advisors about alternative investments. He was asked why the firm approves or doesn’t approve certain products, and about concentration limits. Hamm added that he had repeatedly said that there was risk with alternative investments and concentration limits. CEO Hamm stated on the video, “Part of that risk has come home to roost this past week, and the SEC has come calling and asking questions about GWG bond sales and sales practices.”
If you’ve suffered losses in GWG bonds due to the actions or recommendations of IFP SECURITIES LLC, or any other broker/dealer, contact the Florida-based Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your investment losses through a FINRA arbitration at: 888-760-6552.
Soreide Law Group works on a contingency fee basis and represents our clients nationwide before FINRA.