Erez Law is investigating claims regarding Jeffrey Donald Noard (CRD #1983392, Menomonee Falls, Wisconsin). Noard recently was named a respondent in a FINRA complaint alleging that in June 2012 he made an unsuitable recommendation for investments in a GwG Renewable Secured Debenture totaling $20,000 to one of his elderly customers at his member firm. See FINRA Case #2012034936101. Noard was registered with Allied Beacon Partners, Inc., from February 2011 until July 2013. Since then, Noard has been registered with Cabot Lodge Securities, LLC.
FINRA alleges that Noard’s recommended investment committed 50 percent of the customer’s liquid net worth to the debenture, which was an illiquid, speculative investment that involved a high degree of risk, including the risk of losing the entire investment. Noard did not have reasonable grounds for believing that the proposed investment in the debentures was suitable for his customer based on the customer’s financial situation, objective and needs.
GWG Holdings, Inc., purchases life insurance policies on the secondary market at a discount to the face value of the policies. GWG then pays the policy premiums until the death of the insured, at which point it collects the face value of the policy. GWG intends to earn returns by collecting more upon the maturity of the policy than what it has paid out to purchase and maintain the policy. FINRA found that GWG had a limited operating history, was not yet profitable, and purchased most of the policies it owns with borrowed funds. In 2012, GWG began selling what it called Renewable Secured Debentures. The Debentures were speculative, high risk investments, in which investors could lost their entire investment, according to FINRA’s findings.
If you were a client of Noard or Allied Beacon Partners, Inc., or purchased GWG Renewable Secured Debentures and have experienced investment losses or financial irregularities, please contact Erez Law to explore your legal options. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies. To learn more, please call us at 888-840-1571 or complete our “contact form.”