LANDOLT SECURITIES & MICHAEL A SEBALD

Soreide Law Group has filed a FINRA arbitration on behalf of our client (Claimant) against:

LANDOLT SECURITIES, INC. (Respondent).

The Claimant resides in Florida and is in his late sixties.  The Claimant met LANDOLT SECURITIES’ former registered representative, MICHAEL ARTHUR SEBALD (MICHAEL A SEBALD, MIKE SEBALD) on or about 2020. The lawsuit alleges that LANDOLT SECURITIES former broker, MICHAEL A SEBALD, was aware that the Claimant is a very conservative investor and was looking for reliable income to sustain him through retirement.  The lawsuit states that in January of 2020, the Claimant was presented with GWG Holdings L bonds as a safe and secure asset-backed investment. MICHAEL A SEBALD allegedly recommended a $43,000 investment in a GWG L bond which represented, according to the suitability form, 15.3% of the Claimant’s net worth.  MICHAEL A SEBALD is not named in this lawsuit.

According to the lawsuit, allegedly the Respondent LANDOLT SECURITIES failed to warn their customers of the dramatic changes to the company, GWG Holdings, that ultimately resulted in its bankruptcy. On April 20^th, 2022, GWG Holdings filed Chapter 11 bankruptcy which will wipe out a significant portion of the Claimant’s life savings in addition to the lifelong lost revenue that could have been produced in suitable investments. On December 2021, GWG Holdings failed to make their January 15^th, 2022, interest payment of $10,350,000 and to make their $3,250,000 principal payment on their “L” bonds and the suit alleges that the Respondent allegedly ignored this red flag and never attempted to liquidate the Claimant’s GWG L bond. By 2020, the Respondent allegedly knew that GWG was paying off old investors with new investor money and still recommended this investment onto the Claimant.

The Respondent and their former registered representatives’ actions have caused damage to the Claimant of approximately $50,000.00. The allegations are negligence, breach of fiduciary duty and negligent supervision. The Respondent has not filed a response, and it is anticipated they will deny all allegations.

According to FINRA’s BrokerCheck, available to the public on FINRA’s website, MICHAEL A SEBALD has been in the securities industry for 36 years and was listed with 8 firms.  Sebald is currently not listed with any firm.  He has 2 disclosures on his FINRA CRD report.  One is a “Judgment/Lein” from 1995 and the other is an “Employment Separation after Allegations” discharging Sebald from LANDOLT SECURITIES, INC. The disclosure dated 8/18/2023 lists the allegations as, “Failure to handle client estate paperwork in a timely fashion, failure to abide by the firm's written supervisory procedures, violation of FINRA Rule 2010.”

Soreide Law Group has successfully brought dozens of cases before FINRA involving GWG L Bond sales.  If your broker/dealer or financial advisor recommended GWG L bonds to you and you’ve suffered significant investment losses, contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your financial losses at:  888-760-6552.

Soreide Law Group represents clients nationwide before FINRA on a contingency fee basis, no fee to you if no recovery.