Legal Matters

Investment News reports that GWG Holdings, Inc. is preparing to file for Chapter 11 bankruptcy. The leading cause of bringing the company to the verge of bankruptcy is its failure to pay investors. GWG Holdings, which issues a series of high-yield bonds known as L Bonds, has defaulted on bond payments and missed the deadline to file audited financial statements. How are Individual Investors Affected by the Bankruptcy News of GWG Holdings? GWG L Bonds were once a popular choice among brokerage firms and financial advisors a few years ago. As a result of their financial services, many advisors solicited their clients’ purchase of these bonds. According to Investment News, investors in the $1.6 billion of GWG L Bonds may lose as much as 80% of their underlying investment. Within the past two weeks, GWG Holdings’ shares had fallen to $4.48 per share, down from $10.90 in October. In the wake of the current situation and the risk of GWG [...]

One of the most widespread misunderstandings among individual investors is that to recover investment losses from a stockbroker or the broker-dealer for which he or she works, they must establish that they were purposefully deceived about their investments or otherwise defrauded. Financial professionals, such as stockbrokers, may commit intentional misconduct in a variety of ways, including churning, improper trading, misrepresentations or omissions, and selling away. Investors, on the other hand, may recover their investment losses from their financial advisors and the brokerage companies for which they work if they can demonstrate simple negligence. An investor can hold a stockbroker - and the firm for which he works - accountable by demonstrating that the stockbroker's recommended investments or investment strategy were too risky or aggressive for the investor based on his or her profile, and the investor suffered losses as a result. Such accusations may be based on inappropriate individual investments, an investor's portfolio being unduly concentrated in specific assets or [...]

Deutsche Bank Securities, Inc. has been fined $2 million by the Financial Industry Regulatory Authority ("FINRA") for failure to follow FINRA's rules regarding best execution of trades. Deutsche Bank submitted a Letter of Acceptance, Waiver, and Consent without admitting or denying FINRA's findings. Deutsche Bank Securities Deutsche Bank Securities has been a member of FINRA since 1940 and operates primarily in New York, New York. It has seven branch offices and almost 2,000 registered representatives. The firm handles investment banking, research, and securities sales and trading. SuperX Alternative Trading System DBSI owned and operated an alternative trading system (ATS) known as SuperX. From January 2014 to May 2019, DBSI customers would be routed to SuperX before routing any part of an order to an exchange. This was known as the "SuperX Ping" and would happen automatically unless the customer opted out of the routing preference. The SuperX Ping allegedly caused various issues for the firm and its customers, and routing [...]