Eugene Thompson Involved in Fifth GWG L Bond Dispute

Eugene Thompson (CRD #: 4350479), a broker registered with Capital Investment Group, is involved in a pending dispute, according to his BrokerCheck record, accessed on August 11, 2025. Investors may have also engaged his services through Capital Investment Advisory Services. Keep reading if you have questions about his alleged conduct as a broker.

Investor Dispute

On April 17, 2025, multiple investors alleged that Eugene Thompson violated the North Carolina Securities Act, engaged in constructive fraud, and engaged in fraudulent misrepresentation. The clients further alleged negligent supervision and other negligence by Capital Investment Group.

These allegations were made in relation to a purchase of GWG Holdings L Bonds on April 20, 2022. The clients seek $224,000 in damages in this pending dispute.

On September 3, 2024, an investor alleged that Eugene Thompson breached his contract, engaged in negligence, and misrepresented and omitted information and violated the suitability rule. The client received a settlement of $165,000.

Four disputes filed from July 2022 to July 2024 named Eugene Thompson in allegations of misconduct, including negligence, misrepresentation, and violation of Regulation Best Interest, with regard to investments in GWG L Bonds. These disputes were settled for a collective $479,500.

FINRA Rule 2020

FINRA Rule 2020 prohibits the use of manipulative, deceptive, or otherwise fraudulent tactics to influence the purchase and sale of securities. The misrepresentation or omission of material facts violates this rule.

FINRA Rule 3110

FINRA Rule 3110 requires that firms establish systems of supervision to maintain their compliance with securities regulations. Firms must appoint supervisors and provide them with Written Supervisory Procedures (WSPs) to follow.

Regulation Best Interest

Regulation Best Interest (Reg-BI) is an SEC regulation that requires brokerage firms to put their clients’ best interests first. For example, firms must conduct reasonable due diligence when researching investments to ensure their recommendations are suitable for the investor.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

FINRA Rule 2111

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. Brokers must tailor their investment recommendations using the following characteristics described in an investor’s profile:

• Age
• Financial goals
• Risk tolerance
• Time horizon (i.e., how long the investor plans to hold the investment)
• Investing experience
• Tax status

Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration.

What are Blue Sky Laws?

Blue sky laws are state-level regulations that provide investors with an additional layer of protection against securities fraud. They frequently also define what investments qualify as securities in the state.

Background Information

Eugene Thompson has passed the following exams:

• Series 65 – Uniform Investment Adviser Law Examination
• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination

Eugene Thompson is a registered broker in seven states and a registered investment adviser in North Carolina.

He previously worked for Wells Fargo Advisors (CRD#:19616).

Kurta Law Can Help

If you worked with Eugene Thompson 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.