GWG L bonds are at the center of a FINRA arbitration claim that Soreide Law Group filed in July 2026 for a retired couple in their eighties. The claim names Ernesto Chavez (CRD: 4315877) and Western International Securities.
Attorney Lars K. Soreide signed the statement of claim, dated July 16, 2026. It alleges damages of approximately $180,000. The claim remains pending, and no arbitrator has ruled on it.
According to the statement of claim, Chavez worked as a registered representative of Western International Securities at the time. Around 2018, the claim alleges, he placed $25,000 of the couple's money in GWG L bonds and $60,000 in preferred stock. Then in 2020, the couple also bought $100,000 of Spring Hills Holdings, LLC, the claim says.
The claim describes the couple as conservative investors who wanted income while protecting their principal. They also needed access to their money for long term care, it says. In addition, the claim alleges that no one did adequate due diligence on GWG or Spring Hills before recommending them.
The claim brings three counts: negligence, breach of fiduciary duty, and negligent supervision against Western International Securities. It seeks an award of damages, attorney's fees, interest and costs.
GWG Holdings sold GWG L bonds to retail investors through brokerage firms. The claim states that the bonds were not rated by any rating agency and had no resale market. It also calls them high risk, illiquid and only suitable for customers with substantial financial resources. The couple never heard any of that, the claim alleges.
The claim also points to warning signs it says were public. For example, it states that GWG failed to file its financial reports with the SEC on time four times starting in December 2018. Later, according to the claim, GWG missed its January 15, 2022 interest payment of $10,350,000 and a $3,250,000 principal payment on its L bonds.
Spring Hills Holdings, LLC is the second investment in the claim. According to the statement of claim, Spring Hills stopped making distributions in 2021 because of its illiquidity and high leverage.
Like GWG L bonds, Spring Hills was an alternative investment, not a listed stock or fund. Investments like these can be hard or impossible to sell. That matters most for retirees who may need their money for care.
FINRA rules require a broker to have a reasonable basis to believe a recommendation suits at least some investors. The broker must then decide whether it suits the specific customer, given age, finances, objectives and risk tolerance.
Brokerage firms must also supervise their registered representatives. Here, the claim alleges that Western International Securities had no adequate system in place. As a result, it says, high risk and illiquid investments reached retired customers who wanted income and principal protection.
The claim also appears on the BrokerCheck report of Ernesto Chavez, which lists it as pending under FINRA case number 26-01586, filed July 17, 2026, with alleged damages of $180,000. Chavez and the firm can answer the allegations. If the case reaches a hearing, a panel of FINRA arbitrators will decide it.
FINRA member firms must supervise the activities of their brokers. If you have questions about an account that Ernesto Chavez handled, call Soreide Law Group at (888) 760-6552. You can also reach us online to speak with a securities attorney. Our securities lawyers handle FINRA arbitration claims on a contingency fee basis. Learn how FINRA arbitration works.
This post describes a statement of claim Soreide Law Group filed on behalf of its clients, who are not named. The allegations in it are claims, not findings, and the case is pending before FINRA Dispute Resolution Services. BrokerCheck information is as of October 7, 2026.
GWG L bonds are at the center of a FINRA arbitration claim that Soreide Law Group filed in July 2026 for a retired couple in their eighties. The claim names Ernesto Chavez (CRD: 4315877) and Western International Securities. Attorney Lars K. Soreide signed the statement of claim, dated July 16, 2026. It alleges damages of […]
Ernesto Chavez (CRD: 4315877) faces a new pending claim on BrokerCheck over an investment made in 2018. The customer alleges $180,000 in damages, and no arbitrator has ruled on the claim.
William Tunink (CRD: 2738224) settled a customer claim for $299,000 on August 11, 2026, according to his BrokerCheck report. The customer alleged that he obtained loans from the customer, and that some of the money went into an investment.
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