Robert Fontaine, a broker with Freedom Investors Corp. of Hubertus, Wisconsin, was sanction in August 2014 as a result of recommending and selling GWG Renewable Secured Debentures.
The customers, a married couple had an investment profile that included a moderate risk tolerance, investment objectives of balanced growth and capital growth, a combined annual income of $84,000 and liquid net worth of $180,000. They had indicated that liquidity was an important factor.
Fontaine sold them $121,000 of the Debentures in July 2013 according to the FINRA action.
To resolve the matter, Fontaine agreed to a one month suspension and a $10,000 fine.
FINRA has recently sanctioned brokers from Center Street Securities and 79 Capital Securities in connection with sales of GWG Debentures alleging that these investments are high risk, illiquid and unsuitable for retired and elderly investors.
If you have losses as a result of purchasing GWG Renewable Secured Debentures, call to learn how you may be able to recover damages through FINRA arbitration.
Rex Securities Law provides nationwide representation to investors seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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