Lawsuit Filed Against ARQUE CAPITAL

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

ARQUE CAPITAL, LTD., and their former registered representative, RONALD LEE MCLEOD (Respondents).

The Claimant was a retired resident of Florida who was looking for conservative investments that could generate stable income to sustain her through retirement without any risk of loss to her principal. The lawsuit alleges that ARQUE CAPITAL broker, RONALD LEE MCLEOD, allegedly concentrated a portion of the Claimant’s assets into GWG “L” bonds and GWG related investments. The lawsuit alleges that McLeod concentrated approximately $244,000 into GWG from 2019 to 2021.

The lawsuit alleges that ARQUE CAPITAL broker, RONALD LEE MCLEOD, allegedly described GWG as safe, secure, and asset backed and allegedly failed to mention that the company was losing hundreds of millions of dollars in bad investments. GWG was reliant upon new investor funds to stay afloat. On April 20^th, 2022, GWG Holdings filed Chapter 11 bankruptcy.

The lawsuit alleges that some of the things that may not have been disclosed to the Claimant were:

1. L bonds were high risk, illiquid and only suitable for customers with substantial financial resources.
2. No market for L bonds exists.
3. L bonds are not rated by any rating agency.
4. 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.
5. GWG uses the sale of L bonds to fund their own operations.
6. GWG had multiple missed filing and reporting deadlines with the SEC.

The lawsuit is alleging that ARQUE CAPITAL, LTD, and their representatives’ actions have caused damages to the Claimant of approximately $244,000.00. The lawsuit alleges negligence, breach of fiduciary duty, and negligent supervision.  It is anticipated the Respondents will deny any and all wrongdoing.  No answer has been filed.

According to FINRA’s BrokerCheck, available to the public on FINRA’s website, RONALD LEE MCLEOD has been in the securities industry for 23 years and has been listed with 12 firms. He has one disclosure on his FINRA CRD report, a settled “Customer Dispute,” from June, 2012.  The allegations were, “ALLEGATIONS OF MISREPRESENTATIONS AND UNSUITABILITY IN THE RECOMMENDATION OF RMC MEDSTONE CAPITAL V AND GRUBB & ELLIS HEALTHCARE REIT PRIVATE PLACEMENTS.” The settlement amount was $60,000.00.  McLeod denies all allegations.

RONALD LEE MCLEOD was listed with ARQUE CAPITAL of Bradenton, FL from  03/30/2012 until 10/05/2021.

McLeod is currently listed with the following firm since 9/7/2021:

MOLONEY SECURITIES CO., INC.

13537 BARRETT PARKWAY DRIVE #300
MANCHESTER, MO 63021

If you or a loved one have experienced losses though the actions or recommendations of ARQUE CAPITAL, LTD., of Bradenton, Florida, and/or their former broker, RONALD LEE MCLEOD, particularly in GWG L Bonds, contact the Florida-based Soreide Law Group and speak to an experienced securities lawyer regarding the possible recovery of your investment losses through a FINRA arbitration at:  888-760-6552.

Soreide Law Group represents clients nationwide before FINRA on a contingency fee basis.