Securities Arbitration Lawyer Blog
Prominent securities arbitration law firm Iorio Altamirano LLP is investigating the sales practices of broker Tony Barouti connected with his recommendation of L Bonds issued by GWG Holdings, Inc. to senior and elderly customers. Mr. Barouti is registered as a broker with Emerson Equity LLC in Los Angeles, CA, and is the CEO of Barouti Financial Services, LLC.
Iorio Altamirano LLP has been contacted by numerous senior and elderly retail investors who were recommended and sold GWG’s L Bonds by Mr. Barouti. GWG’s L Bonds are speculative, high-risk, and illiquid securities that were sold as private placement offerings. Brokerage firms received a commission of up to 5% of the principal amount sold.
On January 15, 2022, GWG Holdings Inc. missed interest and principal payments to L bond investors. The company is also reportedly seeking rescue financing in an effort to avoid bankruptcy after facing a series of accounting issues, financial stress, and an SEC investigation. In addition, GWG’s independent auditor resigned at the end of 2021, and the company has disclosed that its 2021 financials are not likely to be completed on time. These are just a few recent developments that have GWG L Bond investors concerned.
GWG L Bonds were likely not suitable for investors with a low-to-moderate tolerance for risk or investors who had liquidity needs.
Investors who purchased the L Bonds offered by GWG Holdings through Tony Barouti or Emerson Equity LLC are encouraged to contact Iorio Altamirano LLP for a free and confidential consultation. We can review and analyze potential claims and advise individuals of their legal rights without obligation or cost.
See Also:
GWG L Bond Investors Seek Recourse After GWG Holdings, Inc. Files for Chapter 11 Bankruptcy
Tony Barouti (CRD No. 3031995)
Tony Barouti, who also goes by Ahmad Barouti, has 22 years of experience in the securities industry. Mr. Barouti is the CEO of Barouti Financial Services, LLC, which sells securities through Emerson Equity LLC. Mr. Barouti has been registered with Emerson Equity LLC in Los Angeles, CA, since June 2017.
Before joining Emerson Equity LLC, Mr. Barouti was associated with eight other brokerage firms throughout his career, including a firm that has since been expelled from the industry by FINRA.
According to his public disclosure report, Mr. Barouti has been the subject of two customer disputes. Most recently, in 2015, a customer filed a written complaint alleging that Mr. Barouti misrepresented a product when he was soliciting the client to purchase the product in or around August 2009. The dispute is pending. The other complaint occurred in 2001 and was closed after the individual that filed the complaint failed to take further action.
About the L Bonds
An L bond is a specialty high-yield bond created and issued by GWG Holdings.
The L Bonds are speculative, high-risk, and illiquid private placement offerings. They are secured by the assets of GWG Holdings and a pledge of all of the common stock by its largest stockholders.
Brokerage firms are required to make investment recommendations that are in the best interest of their customers. Financial advisors also have an obligation to be truthful and disclose all material facts and risks to customers when making investment recommendations. Firms and brokers are also required to conduct reasonable due diligence of products they offer before recommending them to any clients. Iorio Altamirano LLP is investigating whether Mr. Barouti and Emerson Equity LLC met these obligations in connection with their sale of L Bonds to retail investors.
About Iorio Altamirano LLP
Iorio Altamirano LLP is a securities arbitration law firm located in New York, NY. We represent investors nationwide and vigorously pursue FINRA arbitration claims on behalf of investors to recover investment losses.
We have nearly 20 years of combined experience as securities arbitration lawyers and have helped investors recover investment losses in over 1,000 cases. Our firm will file a FINRA securities arbitration claim on your behalf on a contingency fee basis to try to recover your losses. If we do not obtain a recovery, you do not owe us a legal fee.
If you have invested in GWG L Bonds as a result of a recommendation made by Tony Barouti or Emerson Equity LLC, contact securities arbitration lawyers August Iorio at august@ia-law.com or Jorge Altamirano at jorge@ia-law.com. Alternatively, you may reach the firm by phone toll-free at (855) 430-4010.