Stefan Shimshidian Faces Two Investor Disputes Regarding GWG L Bonds

Stefan Shimshidian (CRD #: 3043669), a broker registered with Cabot Lodge Securities, is the subject of an investor dispute. This disclosure appears on his BrokerCheck record, accessed on September 25, 2023. This is the second investor dispute on his record. 

On July 13, 2023, investors alleged that Stefan Shimshidian breached his fiduciary duty and engaged in negligence and negligent misrepresentation with regard to the purchase of GWG L Bonds. They further alleged a violation of Regulation Best Interest. GWG Holdings filed for bankruptcy in 2022 and L bondholders have suffered significant losses.

There is a similar investor dispute dated September 26, 2023. The investor alleged Stefan Shimshidian engaged in gross negligence when he recommended GWG L Bonds. The investor is seeking $235,000. 

Negligence

Many types of broker misconduct may qualify as negligence. Typical examples include unsuitable investment recommendations, misrepresentations or omissions of material fact, and failure to follow instructions.

Investors who believe their losses are the result of broker negligence may be able to recover their funds through FINRA arbitration.

Misrepresentation 

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

What is Regulation Best Interest? 

Regulation Best Interest expanded on the requirements of FINRA Rule 2111, which defines suitable investment recommendations. In addition to limiting their recommendations to investments that suit their investors’ needs, brokerage firms must also uphold a Duty of Care, the Conflict of Interest Obligation, and the Disclosure Obligation. These obligations and duties require brokerage firms to disclose conflicts of interest. Firms must also research the market for investments that could offer similar benefits at a lower cost prior to making a recommendation. 

Background Information 

Stefan Shimshidian 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 

He is a registered broker in eight states: California, Connecticut, Florida, New Jersey, New York, North Carolina, South Carolina, and Vermont. 

In his 24 years of experience, Stefan Shimshidian has registered with the following firms: 

• Cabot Lodge Securities (CRD #: 159712) 
• Allied Beacon Partners (CRD #: 46227) 
• Advanced Planning Securities (CRD #: 14382) 
• Clark Dodge & Co. (CRD #: 23288) 
• Banc of America Investment Services (CRD #: 16361) 
• Quick & Reilly (CRD #: 11217) 
• CitiCorp Investment Services (CRD #: 23988) 

Kurta Law Can Help

If you worked with Stefan Shimshidian and 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.