In August 2025, a FINRA arbitration panel ordered Arete Wealth Management, LLC to pay $280,000 in compensatory damages to an investor who purchased GWG L Bonds. The panel denied claims against individual brokers named in the case and also denied Arete’s counterclaim.

The investor alleged breach of fiduciary duty, negligence, gross negligence, negligent misrepresentation, negligent supervision, breach of contract, fraud, violations of federal securities law, including SEC Rule 10b-5, and violations of the North Carolina Securities Act.

The investor alleged violations of federal securities laws, California securities statutes, unfair business practices, fraud, breach of fiduciary duty, and negligence.