We are interested in speaking to investors of IFP that were sold GWG bonds for potentially inappropriate reasons. The SEC has opened an investigation of IFP’s sales of GWG’s L-Bond in light of the SEC’s Regulation Best Interest. Call 303-300-5022.

Advisors recommending investments that are high risk due to heightened commission is a violation of securities laws. GWG bonds are and have always been a highly risky investment. Additionally, alternative investments such as GWG pay an advisor a very high commission to recommend and sell the investment. This creates an inappropriate incentive to advisors to sell the GWG bonds.

A firm has a duty to evaluate the risk of the investments it sells. The investigation also concerns the research into the risk, which should have disclosed at all relevant times that GWG was a highly speculative investment.

IFP asserts that the questions raised by the SEC are true not just for IFP but also a large number of other brokerage and advisory firms. However, the SEC seems to be keenly focused on the sale of GWG by IFP.

It’s not clear how much in GWG bonds IFP advisers sold. GWG Holdings issued $1.6 billion of L bonds, which are backed by life settlements, and more than 140 broker-dealers had agreements to sell the bonds. It’s also unclear what the bonds are worth, but we strongly believe that the bonds are worthless.

The Law Offices of Jeffrey Pederson represents multiple investors concerning losses with GWG. Please call for a free and confidential consultation.

Please call 303-300-5022 if you have been sold a leveraged or inverse ETFs by brokers at Pursche Kaplan Sterling.

Leveraged ETFs are ETFs with returns based upon some underlying multiplier of a commodity or index (2x S&P, 3x Gold, 2x Russell 2000, etc.). Inverse ETFs are ETFs with returns inverse to a commodity or index. Both are unsuitable for almost all retail investors. Regulators have prohibited the holding of such investments for more than one day even for those sophisticated investors such products are suitable. This is because the investment resets each evening and this can cause extreme volatility in the investments.

One brokerage firm accused of selling these inappropriate ETFs to retail investors is Pursche Kaplan Sterling (“PKS”). Massachusetts regulators recently brought civil claims against PKS.

The regulator alleges PKS failed to review the suitability of thousands of leveraged exchange-traded fund (“leveraged ETF”) transactions. PKS brokers executed the transactions in the accounts of their investors. Investors often holding leveraged ETF positions for periods in excess of one-year experienced significant losses.

PKS brokers also did this in a fiduciary capacity. These brokers were not just securities brokers but registered investment adviser representatives (“RIAs”). RIAs have heightened fiduciary responsibilities beyond those of securities brokers.

PKS had a duty to supervise the advisors at the higher fiduciary level. Once a brokerage like PKS approves a agent to act as a dually-registered RIAs, the brokerage has specific supervisory requirements it must fulfill. In particular, a brokerage must record private securities transactions of these dually registered RIAs on its books and records and supervise activity in the affected accounts as if it were the broker’s own. The brokerage must also follow other fiduciary requirements. This includes full disclosure and warning investors to exit an investment.

Investors should call for a free and confidential evaluation to learn if they are entitled to recovery for the sale of unsuitable investments. Jeffrey Pederson has helped investors across the country recover losses in unsuitable investments for 20 years. Most representations done on a contingency basis.