This case shows that even in smaller claims, arbitration panels may hold individual advisors liable for unsuitable GWG sales. It also illustrates that statutory interest can increase an investor’s recovery, even when the principal damages are modest.

Awards like this show that brokerage firms and individual advisors can be held liable for unsuitable sales of GWG L Bonds. Investors are recovering damages, costs, and attorneys’ fees through arbitration.

Awards like this show that brokerage firms can be held liable for their unsuitable sales of GWG L Bonds. Arbitration panels continue to hear claims and issue awards for investors who suffered losses.  

This case is notable because the panel awarded emotional distress damages in addition to compensatory losses, an uncommon outcome in FINRA arbitration. It also shows how state Blue Sky and consumer-protection laws can support attorneys’ fees awards alongside damages.

This case shows that panels are willing to award not only compensatory damages but also attorneys’ fees and costs where securities arbitration lawyers use applicable state consumer protection laws to maximize investor recovery. That makes it an especially notable result for investors pursuing GWG claims.

Even though GWG filed for bankruptcy, given the trustee’s projection that bondholders may recover only 2–3% of principal invested, investors can still pursue claims against the brokerage firms that sold the bonds. Arbitration panels have awarded compensatory damages, interest, attorneys’ fees, and costs in multiple cases, underscoring arbitration as a viable path to recovery.

The investors alleged breach of fiduciary duty, negligence and negligent misrepresentation, breach of contract, and failure to supervise. The claims focused on L Bonds issued by GWG and other illiquid products.

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.