Smith v. Helmle Arbitration Award

The FINRA Arbitration Award in FINRA Case No. 24-00004 can be viewed here: Smith v. Helmle Arbitration Award

Smith v. Helmle (FINRA Case No. 24-00004)

Award served February 7, 2025. Evidentiary hearing held January 21 to 23, 2025 by videoconference (hearing site: San Diego, California) before an all-public panel of three arbitrators in the FINRA Dispute Resolution Services forum.

What happened

Linda Smith invested in GWG Holdings, Inc. L Bonds and brought a FINRA arbitration claim over that investment. The award names Integrity Brokerage, LLC, a California firm [AUGUST TO CONFIRM], as the respondent’s former firm.

The claim

Ms. Smith filed her claim on December 29, 2023 against two individuals, Michael Frager and Joshua Helmle. The claims included negligence, unsuitability, fraudulent misrepresentations and omissions, securities fraud, breach of fiduciary duty, breach of contract, and failure to supervise, under federal and California law and FINRA Rules 2111 and 2010. She sought approximately $125,000 in compensatory damages. Both respondents represented themselves. On December 24, 2024, before the hearing, the claims against Mr. Frager were voluntarily dismissed with prejudice, and the case proceeded against Mr. Helmle.

The award

The panel found Mr. Helmle liable and ordered him to pay Ms. Smith:

$65,000.00 in damages; and
interest on that sum at 10% per annum from the date the award was served until it is paid in full.

Of the $6,750.00 in hearing session fees, the panel assessed $5,906.25 to Mr. Helmle, $562.50 to Ms. Smith and $281.25 to Mr. Frager. Requests for punitive damages and attorneys’ fees were denied. The award does not state the panel’s reasons.

Why it matters

At the hearing, Mr. Iorio argued that Mr. Helmle, as the individual who formerly owned and controlled the firm [AUGUST TO CONFIRM], was liable under California law as a “control person” of the firm for its sale of the GWG L Bond. The award holds Mr. Helmle liable to Ms. Smith for $65,000.00 plus interest; it does not say which claim or theory the panel accepted.

August M. Iorio represented Ms. Smith in the arbitration. At the time, he was with Iorio Altamirano LLP, the firm the award lists beside his name.

Read the award: FINRA’s copy of the award in Case No. 24-00004 (PDF) or the copy hosted on this site.

Past results are not a guarantee of future outcomes, and the outcome of a particular case cannot be predicated upon a lawyer’s or law firm’s past results.

Client Reviews

August represented my associate and me in the GWG arbitration and accomplished what we thought was impossible. He successfully tracked down the elusive owner of a firm—who had sold the company shortly after our issue arose—and secured a fair settlement for us. Another law firm had already told me...

Allan F.

August Iorio is a wonderful, very competent attorney. He helped me through a very complicated financial situation to a result that benefitted me greatly. He is responsive, efficient, and very accommodating to my personal situation. I highly recommend him.

Christine L.

I was impressed with August Iorio's directness and clarity in explaining the claim process and how it might work out. I also appreciated his promptness in getting back to me when I had questions or other concerns. The law firm is very good at what it does.

Art H.

August Iorio was the lead on our case. His professional demeanor, partnered with his responsiveness to our questions, suggestions, and ideas made us feel as if we were a team with a common goal. He always kept us updated and informed and gave us realistic expectations which resulted in a timely...

EB & SB.

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