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Garrett Moretz Named in Dispute Involving GWG L Bonds

Oct 28, 2022 Unsuitable Investments

Garrett Moretz (CRD #: 4086791), a broker registered with LifeMark Securities Corporation, is named in a pending dispute, according to his BrokerCheck record, accessed on October 14, 2022. Read on if you want to know more about is conduct as a broker.

Investor Dispute

On July 14, 2022, an investor filed a dispute alleging that Garrett Moretz solicited them to invest in GWG L bonds and that this investment was speculative and illiquid. The client allegedly invested $154,500 into L bonds that later defaulted.

The investor alleges that LifeMark Securities Corporation violated Regulation Best Interest, several FINRA rules, and common law duties by offering GWG L bonds. The client also alleges negligence, negligent supervision, breach of contract, and violations of FINRA Rules 2010, 2120, 2111.05(a), and 3110.

The client seeks $154,500 in damages in this pending dispute.

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 requires brokers to recommend investments that fit their investors’ profiles. An investor’s profile contains information about their age, tax status, and investment goals.

FINRA Rule 2111.05(a) defines the forms of suitability:

  • Reasonable-basis: A broker must have a reasonable basis to believe that a security may be suitable for at least some potential investors. This requires brokers to have a competent understanding of an investment’s risks and potential returns.
  • Customer-specific: Brokers must believe a security is suitable for a specific client based on their profile.
  • Quantitative suitability: A series of recommended transactions must be suitable in total as well as individually. A broker executing an excessive number of trades violates this obligation.

Regulation Best Interest

Regulation Best Interest (Reg-BI) is a regulation enforced by the Securities and Exchange Commission which requires brokerage firms to put clients’ best interests first.

Among other things, Regulation Best Interest requires firms to provide disclosures to clients about their brokers and requires reasonable diligence when researching and recommending investments.

FINRA Rule 3110

FINRA Rule 3110 requires that firms establish systems of supervision over their brokers in order to detect and avoid violations of securities regulations. Among other things, firms must appoint supervisors with either the training or sufficient experience to perform their roles.

What is broker negligence?

Many types of broker misconduct can qualify as negligence, including giving unsuitable investment recommendations and executing unauthorized trades. Investors who feel their losses are the result of broker negligence may be able to recover their money by seeking out FINRA arbitration.

Background Information

Garrett Moretz has passed the following exams:

  • Series 65 – Uniform Investment Adviser Law Examination
  • Series 66 – Uniform Combined State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination
  • Series 24 – General Securities Principal Examination

Garrett Moretz is a registered broker in California, Georgia, North Carolina, South Carolina, and Virginia. He is also a registered investment adviser in seven states.

He has also worked for the following firms:

  • First Heartland Consultants (CRD#:110377)
  • First Heartland Capital (CRD#:32460)
  • Allegiant Asset Management (CRD#:141047)
  • Allegiant Securities (CRD#:133912)
  • Synergy Investment Group (CRD#:46035)
  • American Express Financial Advisors (CRD#:6363)
  • IDS Life Insurance Company (CRD#:6321)

Kurta Law Can Help

If you worked with Garrett Moretz 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.