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Mike Nileson Allegedly Recommended Unsuitable GWG L Bonds

Mike Nielson (CRD #: 4546896), a broker registered with IFP Securities, is the subject of an investor dispute. This is according to his BrokerCheck record, accessed on November 2, 2023. Keep reading if you have questions about his alleged conduct. 

On August 17, 2023, an investor alleged that Mike Nielson recommended a high-risk, high-commission, and illiquid alternative investment. The investor further alleged that Mike Nielson misrepresented GWG L bonds, an alternative investment. The issuer, GWG Holdings, has since filed for bankruptcy. The investor is seeking $150,000. 

FINRA Rule 2111 – Unsuitable Investments 

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. Investor profiles have information on the investor’s age, risk tolerance, tax status, investing experience, and financial goals. Investments that do not take these factors into account may be unsuitable. Alternative investments are unsuitable for most investors due to their high degree of risk. 

FINRA Rule 2020 – Misrepresentation

FINRA Rule 2020 prohibits the misrepresentation of investments or omission of material facts. Material facts include information about an investment’s potential returns, as well as charges, expenses and fees. Brokers must always disclose the risks associated with illiquid investments, such as early withdrawal fees.

Background Information 

Mike Nielson 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 
  • Series 24 General Securities Principal Examination 

He is a registered broker in 19 states and D.C. 

During his 21 years of experience, he has registered with five firms: 

  • IFP Securities (CRD #: 297287) 
  • Independent Financial Partners (CRD #: 125112) 
  • Cetera Advisors (CRD #: 10299) 
  • LPL Financial (CRD #: 6413) 
  • Edward Jones (CRD #: 250) 

Kurta Law Can Help

If you worked with Mike Nielson and have concerns about your investments, please contact us today at 877-600-0098 or 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 that 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.