Arete Wealth Management Ordered to Pay $280,000 to GWG L Bond Investor in Latest FINRA Arbitration Award

In another significant win for GWG L Bond investors, a FINRA arbitration panel has ordered Arete Wealth Management, LLC to pay $280,000 in compensatory damages to a harmed investor. The award, issued on August 11, 2025 (FINRA Arbitration Award No. 22-01257), marks the second time in as many years that the Chicago-based broker-dealer has been found liable for its role in the sale of GWG L Bonds.

This latest award adds to a growing trend: investors have now prevailed in 18 out of 20 GWG L Bond cases that have proceeded to a final FINRA hearing—an 90% success rate, far exceeding the historical average for investor claims.

If you purchased GWG L Bonds through Arete Wealth Management—or any other broker-dealer—visit our GWG L Bond Investor Recovery Center for more information.

Repeat Offender: Arete Wealth Management’s GWG L Bond Liability

In February 2024, another FINRA arbitration panel in St. Louis ordered Arete Wealth Management to pay $75,000 plus interest to a GWG L Bond investor (FINRA Arbitration Award No. 22-01337). Both cases underscore the firm’s failure to meet its regulatory obligations when recommending these speculative, illiquid, and high-commission bonds.

Arete Wealth Management’s compliance issues are not new. In 2012, the firm was fined and censured by FINRA for approving a private securities offering to customers without conducting adequate due diligence (2012 FINRA Enforcement Action). The same type of due diligence failure is at the heart of many GWG L Bond claims.

January 2025 Lawsuit: SEC Alleges Fraudulent Practices, Cover-up, and Inadequate Compliance Practices

In January 2025, the U.S. Securities and Exchange Commission filed a federal lawsuit against Arete Wealth Management, Arete Wealth Advisors, LLC, Joey Miller, Jeff and Randy Larson, and General Counsel and Chief Compliance Officer UnBo (Bob) Chung. The lawsuit alleges that Mr. Miller and brothers Jeff and Randy Larson defrauded dozens of investors by soliciting them to purchase unapproved stock in a sham company. This company was run by an individual who had served several years in prison for conspiracy to commit securities fraud and other crimes.

According to the SEC’s complaint, CCO Chung knowingly approved the sale of these shares even after being informed that the individual controlling the stock was a convicted felon. The complaint further alleges that, at the direction of Arete’s CEO, the brokers and CCO later obtained liability waivers from their advisory clients. These waivers, given to clients to whom they owed a fiduciary duty, were known to contain material misrepresentations and omissions.

The SEC’s complaint also claims that while this misconduct was occurring, Arete Wealth Management, through Mr. Chung, failed to comply with key recordkeeping requirements and maintain adequate compliance policies and procedures. The firm also allegedly failed to conduct required annual reviews of its policies for nearly four years after the SEC had already warned Mr. Chung about these deficiencies in the firm’s compliance program.

The shocking allegations, which include alleged fraudulent practices, a cover-up by firm executives, and inadequate compliance practices, reveal that Arete Wealth Management—including its CEO, General Counsel/Chief Compliance Officer, and Mr. Miller—had a practice of placing its own best interests ahead of its customers’.

A Nationwide Pattern of Broker-Dealer Failures

Iorio Law PLLC’s ongoing investigation into the sale of GWG L Bonds has uncovered a troubling pattern among many brokerage firms—not just Arete Wealth Management.

Broker-dealers were required to:

• Conduct reasonable due diligence into GWG Holdings’ financial condition and business model.
• Recommend the bonds only to suitable investors whose financial profile matched the product’s high risk and illiquidity.
• Fully and fairly disclose all material risks, including GWG’s ongoing financial instability and shift into alternative assets via The Beneficient Company Group.

For many investors, these duties were ignored. Instead, the lure of commissions—up to 8%—too often took precedence over investor protection.

Why FINRA Arbitration is the Best Path for Recovery

With GWG’s bankruptcy recovery projected at just 2.7%–3.45% of principal invested, FINRA arbitration claims against selling broker-dealers remain the most viable way for investors to recoup meaningful losses.

These claims can allege:

• Unsuitable recommendations / Reg BI violations
• Misrepresentations and omissions of material risks
• Breach of fiduciary duty
• Failure to supervise advisors who sold the bonds

Iorio Law PLLC, led by attorney August M. Iorio, has already recovered over $3.5 million for GWG L Bond investors nationwide. GWG L Bonds. We represent clients on a contingency-fee basis—no recovery, no fee.

GWG L Bond Investor Recovery Center

Iorio Law PLLC has been investigating the sale of GWG L Bonds for several years and has prepared a comprehensive guide for GWG L Bond investors to learn about what happened and their options going forward: GWG L Bond Investor Recovery Center.

Contact Us

If you purchased GWG L Bonds through Arete Wealth Management—or any other broker-dealer—contact us for a free, confidential case evaluation.

📞 Call: (646) 330-4624
📧 Email: info@iorio.law
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We are committed to holding brokerage firms accountable and helping investors recover what they have lost.