Lifemark Securities Corp.

Lifemark Securities Corp. (CRD #: 16204), a brokerage firm with headquarters in Rochester, New York, is facing allegations that one of its registered representatives recommended unsuitable GWG L Bonds to investors. Issuer GWG Holdings purchased life insurance policies and claimed that L Bonds would generate a return for investors based on premiums payouts. In order for the scheme to work, the policyholders had to die before GWG Holdings paid out too many premiums.

Investors should be aware of the other allegations on Lifemark Securities’ FINRA record.

SEC Geoffrey Wolterstorff Fine and Suspension Following Alleged L Bond Recommendations

The SEC suspended Geoffrey Wolterstorff on July 29, 2024, following allegations that he failed to comply with the Regulation Best Interest’s Duty of Care obligation when he recommended GWG L Bonds. The Duty of Care requires that brokers take the initiative to assess the risks associated with an alternative investment and consider their customers’ risk tolerances.  

As part of his settlement agreement, Geoffrey Wolterstorff consented to pay a $15,000 fine, a $24,991 disgorgement (i.e., refund) to his customers, and a monetary penalty of $3,430. His six-month suspension ends on February 11, 2025.

Life Mark Securities Corporation Fees

LifeMark Securities Corporation offers both brokerage services and investment advisory services. These different services come with separate fees.

The Customer Relationship Summary (Form CRS) prompts investors to ask their financial professional, “Given my financial situation, should I choose an investment advisory service? Should I choose both types of services? Why or why not?

Brokerage Services Fees

Securities transactions come with commissions for the broker every time investors buy or sell an investment. This fee is called a commission.

Lifemark Securities may also impose the following fees:

• Custodial and account management fees paid to the person who manages your investments.
• Mutual funds and annuities could come with management and administrative fees. They could also come with surrender charges (i.e., early withdrawal charges), and 12b-1 fees for marketing, distribution, and operational expenses of the fund.
• Variable annuities might impose mortality and expense charges (M&E) as well as rider charges.

Conflicts of Interest

The Form CRS also reveals the following conflicts of interest that investors should review before purchasing securities:

• More trades generate more fees for brokers. Brokers therefore have a financial incentive to encourage you to trade more often.
• Certain investment products come with more commissions for Lifemark Securities. This results in a conflict of interest for brokers.
• Some of the Lifemark Securities brokers have licenses that limit the securities they can recommend. They will not recommend products that they do not have the correct license to sell, even if one of those products would better suit your needs.
• Advisory accounts come with ongoing payments for Lifemark Securities. This creates an incentive for brokers to recommend advisory accounts more often than brokerage firm accounts.

Brokers with Records of Alleged Misconduct

Kurta Law is aware of the following brokers with misconduct allegations on their records. This is not necessarily a complete list and you should contact Kurta Law if you have any concerns regarding your broker. 

• Garrett Moretz is facing a GWG L Bond dispute.
• Samuel Barber allegedly recommended an unsuitable alternative investment that has since filed for bankruptcy.
• Richard Pascale also has allegations on his record of an unsuitable alternative investment recommendation.
• George Kuruvilla allegedly failed to perform his due diligence and recommended unsuitable investments.
• Robert Murphy is the subject of two investor disputes.
• David Baum allegedly did not disclose all the facts regarding an account.
• Patrick Durst allegedly recommended an unsuitable alternative investment.
• John Derbin has been fined and suspended by FINRA.

Background Information

Kurta Law has experience helping investors who lost money due to unsuitable broker recommendations. If you lost money on a GWG L bond or another risky product after working with a Lifemark Securities Corp. broker. Contact Kurta Law today for a free case evaluation (877) 600-0098 or email info@kurtalawfirm.com.