Soreide Law Group has been contacted by an investor experiencing losses in GWG L Bonds, due to the alleged recommendation of broker/investment advisor, THOMAS CAINE SHULTZ (THOMAS SHULTZ, THOMAS C SHULTZ). Shultz is currently registered both as a broker and investment advisor with REALTA EQUITIES, INC of Phoenix, Arizona since 7/25/2023. He was previously registered with TITAN SECURITIES and COASTAL EQUITIES, both of Scottsdale, Arizona.
GWG Holdings, Inc. filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court on April 20, 2022. For many years before bankruptcy, approximately 40 broker/dealers sold clients close to $1.6 billion in GWG L Bonds. They were called L Bonds because they were backed by life settlements. These bonds were sold at $1,000 units. Many investors were allegedly misled into believing GWG L Bonds were low-risk, secure investments, when in fact GWG L Bonds were high-risk and considered unsuitable for many investors, many of whom were retirees and elderly investors. GWG L Bonds were speculative, high-risk, and illiquid securities sold as private placements.
According to FINRA’s BrokerCheck, available to the public on FINRA’s website, THOMAS C SHULTZ, has been in the securities industry for 12 years and has been listed with 6 firms. Shultz has 5 disclosures on his FINRA CRD report. All 5 disclosures are “Customer Disputes,” 3 have settled and 2 are pending. The significance of Shultz’s disclosures is underscored in FINRA NOTICE to MEMBERS 03-49. FINRA conducted a review of the CRD’s of all registered representatives, only .41% had been the subject of 3 or more customer complaints. In other words, THOMAS C SHULTZ’s customer complaints rank him in the top one-hundredth percent of all registered representatives for customer complaints.
One of the disputes filed against THOMAS C SHULTZ dated 5/23/2022 settled for $42,000.00. The allegations were, “CLAIMANT ALLEGES THE RR (Registered Representative) MADE UNSUITABLE RECOMMENDATIONS AND FAILED TO PERFORM ADEQUATE DUE DILIGENCE ON GWG.”
Potential violations by broker/dealers who sold GWG L Bonds to their clients may include unsuitable recommendations, misrepresentations about the safety of the product, failure to disclose the risks of illiquidity, default, and inadequate supervision by the brokerage firms that approved these sales. Investors harmed by these practices may be able to pursue claims through FINRA arbitration or similar legal actions, even though the bankruptcy itself produced a small recovery.
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 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 works on a contingency fee basis, no fee if no recovery, and represents our clients nationwide before FINRA.
