Jason Price Lamb of Nashville, TN, was recently sanctioned by the Financial Industry Regulatory Authority (FINRA) for in connection with the sale of GWG Renewable Secured Debentures. In the Letter of Acceptance Waiver and Consent , FINRA found that Lamb served as Chief Compliance Officer (CCO) at Center Street Securities and that he failed to adequately supervise certain sales of GWG Renewable Secured Debentures, an illiquid high-risk alternative investment.
Center Street has 4 independent registered representatives operating from 67 branch offices nationwide. As CCO, Lamb was responsible for the firm’s compliance functions. FINRA found that Lamb failed to recognize transactions that contained red flags, including:
- Lamb approved purchases of GWG Debentures with conservative investment objectives
- Lamb approved Debenture purchases that resulted in a high concentration of a customer’s total investable assets, which exceeded the firm’s internal guidelines in some instances
- Lamb approved a Debenture sale where the application misrepresented the liquidity of the Debenture
Lamb was suspended from association with any FINRA member in a principal capacity for two months and fined $10,000. In July 2014, Center Street Securities was fined $100,000 for making sales of the GWG Debentures to persons for whom the investment was not suitable and for allowing excessive concentration levels.
GWG Renewable Secured Debentures– These investments are described in the prospectus as being illiquid, speculative and involving a high degree of risk, including the risk of losing the entire investment. There is no trading market for the GWG Debentures and investors cannot access their principal prior to maturity , absent death, bankruptcy, or total disability.
Rex Securities Law , located in Boca Raton, FL, provides representation to investors in Tennessee and nationwide who are 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.
Rex Securities Law
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