GWG Bond Losses Is Causing Broker Dealers to Shut Down--Rex Securities Law Investment Fraud Attorney (2024)

Last Updated: April 2024

Center Street Securities–In Business 33 years—Shuts Down

According to their CRD, broker-dealer Center Street Securities filed form BDW requesting termination of its registration with FINRA and the U.S. Securities and Exchange Commission on 11/28/23. Center Street Securities was formed in 1990 and headquartered in Nashville, TN. Their latest Form ADV indicates that the firm was relatively small, having $336 million in advisory assets.

Center Street Holding, Inc. , a holding company owned by Arete Wealth Inc., owns Center Street Securities. Arete Wealth Inc. also owns another broker-dealer, Arete Wealth Management , who reported paying $1.1 million in customer settlements in 2023.

GWG Bond Losses Drive Center Street Securities and Other Broker Dealers to Go Out of Business

Scores of broker-dealers (see below for partial list) sold more than $1.5 billion of GWG L Bonds, a product backed by life settlements. Last year GWG Holdings declared bankruptcy, resulting in huge losses for investors whose financial advisors had recommended the investment.

Investor/victims of the recommendation to invest in GWG L Bonds have filed hundreds of FINRA arbitrations against the broker-dealers who sold this product. Many of the selling broker-dealers are small firms, like Center Street Securities. Given the fact many of these selling broker-dealers are small, with limited capital and limited E & O insurance coverage, these claims can exceed the financial ability of firms to survive. Several other broker-dealers, including JRL Capital Corp., have recently gone out of business, purportedly a result of GWG L Bond claims.

It is reported that Center Street Securities earned more commissions (estimated at more than $3.3 million) on sales of GWG L Bonds than all but two broker-dealers in the country, Emerson Equity and Centaurus Financial.

Center Street Securities’ 12/31/22 Annual Report Form X-17A-5 discloses 34 outstanding customer claims seeking total damages of $9.1 million for which the company has accrued a $567,000 reserve. Shareholder equity is reported as $776,738.

Broker-Dealers who Sold GWG L-Bonds

Partial list of financial firms that sold GWG L-Bonds:

• Aegis Capital
• American Equity Investment Group
• American Trust Investment Services
• Arete Wealth Management
• Ausdal Financial Partners
• Cabot Lodge Securities
• Capital Investment Group
• Centaurus Financial
• Center Street Securities
• Coastal Equities
• Dempsey Lord Smith
• D.H. Hill Securities
• Emerson Equity
• G.A. Repple
• Great Point Capital
• IFP Securities
• Independence Capital
• Integrity Brokerage
• Intervest International Equities
• International Assets Advisory
• JRL Capital Corp. (filed for bankruptcy)
• Kingswood Capital Partners
• Landolt Securities
• Lifemark Securities
• Lion Street Financial
• Madison Avenue Securities
• M Stevens Securities
• Moloney Securities
• National Securities Corporation
• Newbridge Securities
• NL Advisors
• Paulson Investment Company
• Portsmouth Financial Services
• Stiba Wealth Management
• SW Financial
• TFS Securities
• The FIG Group
• Titan Securities
• Western International Securities
• Westpark Capital

Discuss your case with experienced investment fraud lawyer Bob Rex at (877) 224-3199 for a free consultation.

Recover Your GWG L-Bond Investment Losses With Rex Securities Law

If you have suffered investment losses on GWG L-Bonds, contact us for a complimentary consultation with an experience securities lawyer to learn how you may be able to recover damages through FINRA arbitration.

With offices in Boca Raton, FL and Austin, TX, stockbroker fraud attorney Bob Rex provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers, financial advisors and broker dealers.

If you have questions about how your account has been handled, call (877) 224-3199 to speak with an experienced securities attorney at no cost to you.

Most cases are handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Recommended Reading:

1. GWG L Bond Losses? How to Recover Damages
2. Morgan Hill – Center Street Securities Broker-Customer Sues Over GWG L-Bond Losses – Woodstock, GA
3. Kenneth New- Center Street Securities Broker-Facing Suit Over GWG L-Bond Losses – Merritt Island, FL
4. Christopher Wright – Center Street Securities Broker-Customer Sues Over GWG L-Bond Losses – Prescott, AZ