Investor: James Schrack Sold Unsuitable GWG L Bonds
James Schrack (CRD# 2620270), a broker with Center Street Securities and owner of Schrack Financial Group, allegedly recommended unsuitable investments. This is according to investor disputes disclosed in his Financial Industry Regulatory Authority (FINRA) BrokerCheck record, accessed on June 29, 2023. More information about the Spokane Valley investment professional’s alleged conduct is available below.
Two Disputes Seek at Least $1 Million
Two investors or parties of investors lodged disputes involving Mr. Schrack between June 2022 and April 2023. Both disputes allege that he recommended an unsuitable investment. While one of the disputes only identifies the underlying product as an “alternative investment,” the other specifies that the investment at issue was in GWG L bonds. The disputes, which remain pending, seek more than $1 million in cumulative damages.
What Are GWG L Bonds?
Investors in GWG L Bonds may have recovery options. GWG Holdings, which issued these risky investments, filed for Chapter 11 bankruptcy on April 20, 2022. The Securities and Exchange Commission (SEC) had been conducting a probe into it since at least October 2020, which GWG first disclosed to its investors the following year. The company’s principals directed investors’ funds toward investments in their own ventures beginning in 2018, of which they failed to inform investors.
If you suffered losses on investments in GWG L Bonds, you may be able to pursue a recovery by filing a FINRA arbitration claim against the firm that marketed the products to you. Should you successfully win a recovery from the firm, you will still be eligible to receive any payments issued as part of the bankruptcy process GWG Holdings is currently undergoing.
FINRA: Schrack Based in Spokane Valley, Washington
James Schrack began his career as a broker in 1995, when he started working at NYLife Securities in New York City. In the years since, he has worked at a variety of broker-dealer firms, including Franklin Financial Services Corporation and Sunset Financial Services. He joined Center Street Securities’ branch office in Spokane Valley, Washington in 2011, where he has remained until the present. According to his BrokerCheck record, he has been the owner of Schrack Financial Group since 1993. With 27 years of experience in the securities industry, he has passed one state securities law exam and three general industry/products exams, including the Series 7TO and the Series 6.
Call MDF Law to Discuss Your Broker Fraud Claim Today
Investors who experienced losses on investments recommended by James Schrack may be able to file a FINRA arbitration claim to pursue a recovery. The seasoned investment fraud attorneys at MDF Law have extensive experience recovering their clients’ losses. Call 800-767-8040 today for a free consultation.
Call MDF Law today if any of the following apply to you:
- Your broker recommended investments in GWG L Bonds or other alternative investments that exceeded your stated risk tolerance;
- You lost more money than you could afford to;
- You were not made aware of substantial risks associated with investments in your portfolio;
- Your investment comprised a significant amount of your net worth;
- You were not made aware that you could lose your entire principal on an investment in your portfolio.