Tony Barouti Allegedly Sold Unsuitable L Bonds

The Kurta Law firm is investigating claims related to Tony Barouti (CRD #: 3031995) selling unsuitable L bonds to investors. Tony Barouti is currently a registered representative with Emerson Equity LLC. Emerson Equity is an underwriter for GWG Holdings, a financial services holding company that has recently become the subject of an SEC investigation.

GWG Holdings has failed to make approximately $13 million in payments to L Bond investors. GWG Holdings stated in a February 2022 letter that they will continue to suspend maturity, dividend, and redemption payments as they evaluate restructuring options. 

If you have worked with Tony Barouti, you should review your securities portfolio and consider if an L Bond may not have fit your financial goals and risk tolerance. Securities lawyers can help you recover any losses. Contact Kurta Law for a free case evaluation: 877-600-0098 or info@kurtalawfirm.com.

What is an Unsuitable Recommendation?

FINRA Rule 2111 requires stockbrokers to recommend investments that only fit their investor’s risk tolerance. L Bonds are inherently risky and rely on speculative investments in life insurance policies. They could potentially have yields as high as 8.5%. In many suitability disputes, investors allege their stockbroker emphasized the possibility for high returns without highlighting the possibility of major losses.

Tony Barouti Investor Allegations

There are two investor disputes on Tony Barouti’s record. One alleges Tony Barouti misrepresented an investment. Misrepresentation violated FINRA Rule 2020, which forbids material misrepresentations and omissions.

The other alleged that a variable universal life insurance policy was presented as a mutual fund. The investor further alleged that he was not told of monthly charges associated with the variable universal life policy (VULs). VULs are often too expensive to suit investors’ needs.

Background Information

He is a registered broker in the following states:

• Arizona
• California
• Georgia
• Illinois
• Kansas
• Maryland
• New Jersey

Tony Barouti has worked with the following firms:

• First Heartland Capital (CRD #: 32460)
• LPL Financial (CRD #: 6413)
• Newport Coast Securities (CRD #: 16944)
• Commonwealth Financial Network (CRD #: 8032)
• Brookstreet Securities Corporation (CRD #: 14667)
• Jefferson Pilot Securities Corporation (CRD #: 3870)
• Linsco/ Private Ledger (CRD #: 6413)
• World Group Securities (CRD #: 114473)
• WMA Securities (CRD #: 32625)

Do You Know How to Recover L Bond Losses?

If you want to sue your stockbroker to recover your losses, you may discover a pre-dispute arbitration clause in your brokerage firm agreement. Many firms require you to settle disputes through FINRA Arbitration. If you think you may have a claim, speak with a securities attorney and find out what steps to take next to recover your losses.