Phillip Anderson Suspended by FINRA Over Alleged GWG L Bond Recommendations

Phillip Anderson (CRD #: 814936), a broker formerly registered with Kingswood Capital Partners, allegedly recommended unsuitable investments, according to his BrokerCheck record, accessed on June 14, 2025. Read on to learn more about his alleged conduct as a broker.

FINRA Suspension

On May 13, 2025, Phillip Anderson consented to the entry of findings that he allegedly made unsuitable recommendations of GWG Holdings L Bonds to two senior customers.

According to a Letter of Acceptance, Waiver & Consent (AWC), the offering documents for GWG Holdings’ third L Bond offering in December 2017 allegedly described the bonds as illiquid, involving a high degree of risk, and only suitable for investors with significant financial resources. GWG Holdings filed for bankruptcy in 2022.

Phillip Anderson allegedly made the following recommendations:

• Customer A: Allegedly had a moderate risk tolerance, annual income below $50,000, and net worth (excluding primary residence) of less than $100,000. Recommendation to invest $96,000 in L Bonds in March 2019 allegedly represented 96% of her net worth and resulted in $4,320 in commissions.
• Customer B: Allegedly had a moderate risk tolerance, annual income below $100,000, and net worth (excluding primary residence) of up to $250,000. Recommendation to invest $88,000 in March 2019 allegedly represented 35% of his net worth and generated $3,960 in commissions.

The AWC concluded that these allegations constituted violations of FINRA Rules 2111 and 2010.

FINRA Rule 2111

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile, which describes their age, tax status, risk tolerance, and other characteristics.

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

FINRA Rule 2010

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

Sanctions

Phillip Anderson consented to the following sanctions:

• Five-month suspension from associating with FINRA members
• $10,000 fine
• Disgorgement of $8,280 plus interest

His suspension began on May 19, 2025, and will end on October 18, 2025. You can read the full AWC here.

Investor Disputes

On April 28, 2023, an investor alleged that Phillip Anderson recommended and misrepresented an illiquid alternative investment as safe. The client sought $96,000 in damages and received a settlement of $56,000.

In a dispute filed on August 19, 2021, an investor alleged that Phillip Anderson made material omissions and used false information with regard to recommendations of unsuitable, illiquid, and risky private placements. Specifically, Phillip Anderson allegedly claimed that the unregistered private placement was a growth fund with 7-8% annual returns.

The client seeks $250,000 in this pending dispute.

FINRA Rule 2020

FINRA Rule 2020 forbids the use of deceptive, manipulative, and otherwise fraudulent methods to influence investors’ decisions. Misrepresenting an investment’s risks, fees, features, and other material facts violates this rule.

Background Information

Phillip Anderson has passed the following exams:

• General Securities Principal Examination – Series 24
• Securities Industry Essentials Examination – SIE
• General Securities Representative Examination – Series 7
• Registered Representative Examination – Series 1
• Uniform Investment Adviser Law Examination – Series 65
• Uniform Securities Agent State Law Examination – Series 63

He previously worked for the following firms:

• Kingswood Capital Partners (CRD#:288898)
• Niagara International Capital Limited (CRD#:135327)
• Wells Fargo Advisors Financial Network (CRD#:11025)
• Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691)
• Edward D. Jones & Company (CRD#:250)
• Carillon Investments (CRD#:14646)
• PML Securities Company (CRD#:4082)
• NML Equity Services (CRD#:2881)

Kurta Law Can Help

If you worked with Phillip Anderson 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 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.