Paulson’s John Nole Involved in GWG L Bond Dispute

John Nole (CRD# 1609191[1]), a broker registered with Paulson Investment Company, is embroiled in an investor dispute stemming from investments in GWG Holdings. This dispute can be found in his BrokerCheck profile, a record published by the Financial Industry Regulatory Authority (FINRA) and accessed on August 1, 2023. As it reflects, he is based at his member firm’s office in St. Petersburg, Florida.

GWG Dispute Seeks $250,000

On May 23, 2023, a party of investors filed a dispute alleging that Mr. Nole recommended an unsuitable purchase of GWG L Bonds[2]. The dispute, which remains pending, seeks damages of $250,000.

FINRA Rule 2111 Mandates Suitable Investment Recommendations

FINRA Rule 2111[3] is an important securities industry standard that brokers to have a “reasonable basis to believe” the their investment recommendations are suitable for their customers’ profiles. In determining a product’s suitability, they must weigh factors including the customer’s background, experience, goals, risk tolerance, investment horizon, net worth, and more.

What Are GWG L Bonds?

Based in Texas, GWG Holdings filed for bankruptcy on April 20, 2022. The firm was known for issuing GWG L Bonds, which raised investor funds to buy secondary-market life insurance policies. These were complex, risky investments that may not have been suitable for many investors, including those with little experience or tolerance for risk. GWG Holdings’ principals used funds raised for L Bonds for investments in their own ventures, something they failed to inform the products’ investors. When the company filed for bankruptcy, it was under investigation by the Securities and Exchange Commission, which has brought charges against a firm that marketed L Bonds. Investors who suffered losses in these products may be able to file a FINRA arbitration claim against the broker-dealer firm that marketed them. Claimants who successfully receive a recovery through the arbitration process will still be eligible for any payments issued through GWG Holdings’ bankruptcy process.

John Nole Based in St. Petersburg, Lake Oswego

Nole started his career as a broker in 1987, when he registered with Graystone Nash. Over the following years, he worked at a variety of firms, including VTR Capital, Barron Chase Securities, Gunnallen Financial, and Aegis Capital. He registered with his current member firm, Paulson Investment Company, in 2016, and is affiliated with the firm’s offices in St. Petersburg, Florida and Lake Oswego, Oregon. With 36 years of experience under his belt, he has completed two state securities law exams, two general industry/products exams, and one principal/supervisory exam.

GWG Complaints?

You may be qualified to file an arbitration claim to recover your losses. With tens of millions in recoveries, MDF Law accepts cases on contingency and offers free consultations to the victims of broker fraud. Call 800-767-8040 to speak with our team today.