Iorio Law Takes Major Action Against Arete Wealth Management Over Alleged GWG L Bonds Misconduct

Iorio Law PLLC's FINRA Claim against Arete Wealth Management

Background

On August 19, 2025, Iorio Law PLLC announced that it had filed a substantial six-figure FINRA arbitration claim against Arete Wealth Management, LLC, representing a retail investor from Raleigh, North Carolina. The claim pertains to the sale of GWG L Bonds, which have been categorized as speculative, high-risk, and illiquid securities that were sold without adequate due diligence and in violation of financial obligations under FINRA rules and Regulation Best Interest.

Allegations

The Statement of Claim accuses Arete of failing to comprehensively disclose the significant risks associated with the GWG L Bonds. This lack of transparency raises serious concerns about whether the firm acted in the best interest of the investor while recommending these securities. The claim alleges that the products were unsuitable based on the investor's risk profile, further emphasizing Arete's disregard for its fiduciary duties.

This arbitration filing comes after a similar decision made by a FINRA arbitration panel, which ordered Arete Wealth Management to compensate a different GWG L Bond investor $280,000. This marks the second adverse ruling against Arete related to these bonds, indicating a troubling pattern of behavior linked to their sale practices.

Industry Commentary

August M. Iorio, the founding attorney of Iorio Law PLLC, commented on the situation, stating, "GWG L Bonds were unsuitable for many retail investors, and evidence shows that brokerage firms across the country did not conduct proper due diligence or make recommendations aligned with their clients' true needs." He further noted that Arete is not the only firm facing scrutiny; multiple firms involved in these transactions are encountering similar claims. Iorio Law encourages all investors who purchased L Bonds to visit their GWG L Bond Investor Recovery Center to understand their legal options.

Legal Representation

Iorio Law PLLC is committed to representing GWG L Bond investors against a range of brokerage firms, including Emerson Equity LLC, Western International Securities, Inc., Centaurus Financial, and Aegis Capital Corp. Notably, August M. Iorio has successfully recovered over $3.5 million for GWG L Bond investors nationwide, which speaks to the firm’s experience in handling such complex cases.

Investor Risks

The landscape surrounding GWG L Bonds took a drastic turn when GWG Holdings, Inc., the issuer of these bonds, filed for Chapter 11 bankruptcy in 2022. This event left a multitude of investors grappling with substantial financial losses. Initially marketed as safe investments capable of generating income, GWG L Bonds have become emblematic of risky financial products that can lead to severe losses, including loss of principal.

Call to Action for Investors

Investors entangled with these bonds are urged to act promptly, as claims related to securities arbitration are bound by strict statutes of limitations and eligibility rules. Those who purchased GWG L Bonds should seek counsel experienced in these matters to ensure they maintain their rights to recovery.

About Iorio Law PLLC

Iorio Law PLLC is a prominent securities arbitration law firm based in New York City. The practice focuses on representing investors in various claims against brokerage firms, investment advisors, and other financial institutions. Under the leadership of August M. Iorio, the firm has successfully recovered nearly $100 million for clients through litigation and FINRA arbitration.

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