David Arlein Involved in Two Six-Figure GWG L Bond Disputes

David Arlein (CRD #: 7145), a broker previously registered with Cabot Lodge Securities, is the subject of his 22nd investor dispute, according to his BrokerCheck record, accessed on August 10, 2023. 

On July 6, 2023, investors alleged that David Arlein breached his fiduciary duty and engaged in negligent misrepresentation when he recommended GWG L Bonds in 2020. The issuer, GWG Holdings, has since filed for bankruptcy. L bonds were unrated bonds and unsuitably risky for many investors. The investors in this dispute are seeking $300,000. 

Another dispute from earlier in 2023 makes similar allegations regarding his recommendation of GWG L Bonds. The investors are seeking $500,000. 

On October 20, 2020, an investor alleged that David Arlein breached his contract and warranties, violated state securities statutes, and engaged in misrepresentation. They further alleged unjust enrichment, among other allegations. The investor sought $300,000 and settled for $200,000. 

Many of the disputes on David Arlein’s record have settled for six figures. 

FINRA Rule 2020

FINRA Rule 2020 prohibits the use of manipulation, deception, and other fraudulent methods to influence investors’ decisions. This includes the misrepresentation or omission of material information, such as an investment’s potential returns, risks, or limitations.

Negligence

Many types of broker misconduct may qualify as negligence. Typical examples include unsuitable investment recommendations, failure to follow instructions, and misrepresentations or omissions of material fact. 

Background Information 

David Arlein has passed the following exams: 

• Series 63 Uniform Securities Agent State Law Examination 
• Series 7TO Securities Industry Essentials Examination 
• SIE – Securities Industry Essentials Examination 
• Series 1 Registered Representative Examination 

From 1989 to 2022, David Arlein registered with the following firms: 

• Cabot Lodge Securities (CRD #: 159712) 
• Fintegra (CRD #: 16741) 
• Empire Financial Group (CRD #: 28759) 
• Rushmore Securities Corporation (CRD #: 8392) 
• Northstar Securities (CRD #: 11247) 
• Sigma Financial Financial Corporation (CRD #: 14303) 
• IFG Network Securities (CRD #: 19948) 
• Wealth Builders Equity Corporation (CRD #: 22152) 

Kurta Law Can Help

If you worked with David Arlein and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.