FINRA Arbitration Award - Iorio Law PLLC

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

Iorio Law PLLC — Tue, 12 Aug 2025 18:53:28 GMT

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 GWG recovery 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
📍 Location: One World Trade Center, 85th Floor, New York, NY 10007
🖊️ Free Case Review: Contact Form

We are committed to holding brokerage firms accountable and helping investors recover what they have lost.

UBS Hit with $92 Million FINRA Arbitration Award Over Risky Tesla Short Strategy

Iorio Law PLLC — Mon, 03 Mar 2025 19:31:56 GMT

On February 28, 2025, a FINRA arbitration panel delivered a staggering $92 million award against UBS Financial Services, Inc. and its broker, Andrew Burish, marking one of the largest investor victories in recent memory. The case, FINRA No. 21-00488, involved nine claimants who alleged that UBS and Burish mismanaged their accounts by recommending an unsuitable, high-risk strategy of shorting Tesla, Inc. stock. This landmark ruling underscores the accountability of financial giants and the potential for investors to recover losses through arbitration. As a securities arbitration law firm that recently secured a $65,000 award for our client in a GWG L Bonds case (FINRA Case No. 24-00004), we are proud to highlight how cases like these demonstrate the power of FINRA arbitration to deliver justice.

Case Background: A Risky Bet Gone Wrong

The claimants filed their initial Statement of Claim on February 22, 2021, accusing UBS and Burish of breach of fiduciary duty, violation of FINRA suitability rules, negligent supervision, and fraud. The allegations centered on a high-stakes trading strategy that involved shorting Tesla stock—a speculative move designed for short-term gains rather than the long-term wealth preservation the claimants sought. According to the amended claim, UBS and Burish pushed this aggressive approach, provided boilerplate paperwork to unsophisticated investors, and encouraged holding these risky positions despite ballooning losses.

Tesla’s stock, known for its volatility, soared in value during the period in question, turning the short positions into a financial disaster for the claimants. At the hearing, the claimants collectively sought over $36 million in actual damages, alongside punitive damages and legal costs. One couple alone requested $26,344,929.36, reflecting the scale of their losses.

UBS and Burish denied the allegations and sought dismissal of the case, expungement of Burish’s CRD records, and reimbursement of costs. However, the three-person arbitration panel sided overwhelmingly with the claimants.

The Award: A Massive Win for Investors

After a grueling process that included nine pre-hearing sessions and 71 hearing sessions spanning May 2023 to December 2024, the panel issued its award on February 27, 2025. The breakdown is jaw-dropping:

Compensatory Damages: UBS was ordered to pay $17,033,359.50 to Claimants A & B, $792,871.20 to Claimants C & D, $269,064.00 to Claimants E &F, $801,216.00 to Claimants G & H, and $4,163,011.20 to Claimant I. Burish was also held jointly liable, contributing $1,892,595.50, $88,096.80, $29,896.00, $89,024.00, and $462,556.80 to the respective claimants.
Punitive Damages: UBS faced a punitive damages bill totaling over $69 million, including $51,100,078.50 to Claimants A & B, with additional awards ranging from $807,192.00 to $12,489,033.60 for the other claimants. Burish was assessed $100,000 in punitive damages per claimant group, totaling $500,000. These awards were grounded in Iowa law, citing willful and reckless misconduct.
Expungement Denied: Burish’s request to clear Occurrence Numbers 2108362 and 2116466 from his CRD records was rejected, ensuring the case remains on his regulatory record.

The total award—$92,178,409.50—sends a clear message: brokerage firms and their advisors can face severe consequences for pushing unsuitable investments.

Why This Matters: Lessons from the Tesla Short Debacle

This case, as reported by AdvisorHub (e.g., “UBS Ordered to Pay $92 Million Over Top Wisconsin Broker’s Big Tesla Short”), highlights critical issues in the financial industry:

Unsuitability Violations: FINRA Rule 2111 requires brokers to recommend investments aligned with a client’s risk tolerance and goals. Shorting Tesla—a notoriously volatile stock—was a misfit for investors seeking asset protection and multi-generational wealth transfer.
Breach of Fiduciary Duty: UBS and Burish failed to act in their clients’ best interests, prioritizing aggressive strategies over prudence.
Supervisory Failures: UBS’s liability reflects a lack of oversight, allowing Burish to pursue a high-risk approach unchecked.
Punitive Damages as Deterrence: The massive punitive award signals that egregious misconduct won’t be tolerated, aiming to deter similar behavior industry-wide.

Our Experience: Fighting for Investors

As a securities arbitration law firm, we have seen firsthand how FINRA arbitration can level the playing field for investors. Recently, we represented a retail investor in a FINRA arbitration, securing a $65,000 award against the former owner and control person of Integrity Brokerage Services over unsuitable GWG L Bonds. While smaller in scale, that victory mirrors the UBS case—both involved advisors recommending risky investments that devastated their clients. At Iorio Law PLLC, we specialize in holding firms like UBS accountable, and cases like these reinforce why our work matters.

What This Means for Investors

The $92 million UBS award is a beacon of hope for investors harmed by broker misconduct. Whether you’ve lost money on Tesla shorts, GWG L Bonds, or other unsuitable investments, FINRA arbitration offers a path to recovery. The arbitration process is designed to deliver binding, enforceable decisions. With punitive damages on the table, it also punishes bad actors and compensates victims beyond their direct losses.

If you suspect your broker or firm mismanaged your investments, time is critical—statutes of limitations apply. Contact an experienced securities arbitration attorney to evaluate your case. The UBS ruling proves that even the biggest firms aren’t immune to accountability.

Conclusion

The FINRA award in Arbitration No. 21-00488 is a watershed moment for investor rights. UBS and Andrew Burish’s $92 million penalty reflects the severe consequences of pushing unsuitable, high-risk strategies like Tesla shorts on unsuspecting clients. For us, it’s a reminder of why we fight for investors—whether it’s a $65,000 win against a small firm or a headline-making victory against a giant like UBS. If you’ve suffered losses due to broker misconduct, don’t hesitate to reach out to Iorio Law PLLC. We’re here to help you reclaim what’s yours.

About Iorio Law PLLC

Iorio Law PLLC is a securities arbitration law firm located in New York, NY. We represent investors nationwide and vigorously pursue FINRA arbitration claims on behalf of investors to recover investment losses.

We have 15 years of experience as securities arbitration lawyers and have helped investors recover nearly $100 million of investment losses in over 700 cases. Our firm will file a FINRA securities arbitration claim on your behalf on a contingency fee basis to try to recover your losses. If we do not obtain a recovery, you do not owe us a legal fee.

If you have suffered investment losses as a result of broker misconduct or negligence, contact securities arbitration lawyers August Iorio at info@iorio.law. Alternatively, call the firm toll-free at (646) 330-4624.

GPB Investors Have Won Monetary Awards in 10 of 11 Arbitration Cases This Past Year

Iorio Law PLLC — Thu, 18 Nov 2021 18:01:55 GMT

Over the past calendar year, GPB Capital investors have won over $2.4 million in monetary awards in 10 out of 11 (nearly 91%) arbitration claims that have proceeded to a final hearing. According to public records, many other claims filed against broker-dealers who sold the private placements offered by GPB Capital have been settled for monetary compensation.

The judgments and awards come after years of filing lawsuits and arbitration claims by GPB Capital investors.

For our latest posts related to GPB Capital, please click here.

Earlier this year, the SEC has charged GPB Capital, Ascendant Capital, and Ascendant Alternative Strategies with running a Ponzi-like scheme that raised roughly $1.8 billion from securities issued by GPB Capital. The SEC believes that as many as 17,000 retail investors nationwide have been defrauded.

GPB Capital had four flagship funds, which were sold as private placement offerings:

GPB Holdings, LP / GPB Holdings Qualified, LP.
GPB Automotive Portfolio, LP.
GPB Holdings II, LP.
GPB Waste Management, LP.

GPB Capital, an alternative asset management firm, sold unregistered and high commission limited partnership interests through independent broker-dealers and investment advisers who would, in turn, sell the GPB Funds to their retail investors. There are serious concerns that broker-dealers may have failed to conduct reasonable due diligence about the GPB Funds and GPB Capital.

Brokers and brokerage firms are obligated to make suitable recommendations in their customers’ best interests. Among other things, the broker must have a reasonable basis to believe that a recommendation is suitable for a customer based on the particular customer’s investment profile. In addition, the broker and firm must have a reasonable basis to believe, based on reasonable diligence, that the recommendation is suitable for at least some investors. FINRA has stated that “reasonable diligence” means that the firm’s and/or broker’s due diligence “must provide the firm or associated person with an understanding of the potential risks and rewards of the recommended security or strategy.”

Brokerage firms may have failed to conduct reasonable diligence into the GPB funds before selling the private placement offerings to their customers. The firms’ compliance departments likely ignored or missed many red flags such as inflated revenue reports, fabricated profits, kickbacks, and investor funds being funneled into the pockets of GPB’s principals.

Iorio Altamirano LLP is investigating claims on behalf of defrauded investors who were victims in the GPB funds scheme. The GPB funds were marketed to independent broker-dealers and investment advisers who would, in turn, sell the GPB funds to their retail investors.

Investors that have purchased any of the following private placement investments issued by GPB Capital should contact securities arbitration law firm Iorio Altamirano LLP for a free and confidential consultation and review of their legal rights:

GPB Holdings, LP / GPB Holdings Qualified, LP.
GPB Automotive Portfolio, LP.
GPB Holdings II, LP.
GPB Waste Management, LP.

If you lost money in the GPB funds, you might have a claim.

A Year of Awards for GPB Capital Investors

Below is a summary of cases that have been identified from publicly available records where investors filed securities arbitration claims seeking to recover investment losses due to, in part, private placement offerings of GPB Capital. The list includes only cases that have proceeded to a hearing. It does not include numerous cases that were settled.

Date	Case Number	Hearing Site	Respondent(s)	Award
11/16/2021	20-01124	Boca Raton, FL	Sandlapper Securities, LLC	$155,188 + $50,000 attorney’s fees
11/1/2021	20-00604	Atlanta, GA	Capital Financial Services, Inc.	$88,760 + $16,000 attorney’s fees and costs
10/12/2021	19-00440	Cleveland, OH	McDonald Partners, LLC and Thomas M. McDonald	$160,000
8/13/2021	19-03721	New York, NY	Hightower Securities, LLC	$163,201
8/11/2021	20-1967	Tampa, FL	Berkely Creighton Badger	$126,734
7/16/2021	20-01385	New York, NY	Hightower Securities, LLC	Denied
5/10/2021	20-04209	St. Louis, MO	Moloney Securities Co. Inc.	$1,750
4/21/2021	20-00687	Boca Raton, FL	Sandlapper Securities, LLC, Concorde Investment Services, LLC, and Fortitude Investment Group, LLC	$100,000
4/20/2021	20-01415	Denver, CO	Triad Advisors, LLC	$55,000
1/28/2021	19-01143	Detroit, MI	Arete Wealth Management LLC	$186,639
11/11/2020	19-02820	Boca Raton, FL	Crystal Bay Securities, Inc.	$1,300,803

How to Recover GBP Investment Losses

GPB Capital investors should immediately contact a securities arbitration law firm to review their legal rights.

Investors who have purchased GPB Automotive, GPB Holdings, GPB Holdings II, or GPB Waste Management through a broker or brokerage firm have successfully recovered investment losses by filing securities arbitration claims.

Iorio Altamirano LLP is a national securities arbitration law firm based in New York, NY. The law firm pursues FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by financial advisors and brokerage firms.

We have nearly 20 years of combined experience as securities arbitration lawyers and have helped investors recover investment losses in over 1,000 cases. Our firm will file a FINRA securities arbitration claim on your behalf to recover your losses. We generally represent clients on a contingency fee basis. If we do not obtain a recovery, you do not owe us a legal fee.

Submit a form here to schedule a free and confidential consultation.

Iorio Altamirano LLP is investigating claims on behalf of GPB investors who purchased the security through a broker-dealer or registered investment advisor, including, but not limited to the following firms: