Stefan Shimshidian Involved in GWG L Bond Disputes
Stefan Shimshidian (CRD# 3043669), a broker registered with Cabot Lodge Securities, violated industry rules when selling GWG L Bonds, according to investor disputes. MDF Law is investigating the White Plains, New York-based financial professional for similar conduct. If you are a current or former client with concerns about your own accounts, contact us for a free consultation.
Continue reading this post to learn more about the allegations involving Mr. Shimshidian. The information below is sourced from his BrokerCheck profile, a Financial Industry Regulatory Authority record examined on February 18, 2025.
Pending GWG Dispute Seeks 6-Figure Damages
On November 21, 2024, an investor lodged a dispute involving Mr. Shimshidian. In this claim, they alleged breach of fiduciary duty, negligence, misrepresentation, breach of contract, and the violation of Regulation Best Interest. As a disclosure regarding the allegations notes, they stem from investments in GWG L Bonds. The dispute, which is still pending, seeks $255,000 in alleged damages.
Settled Disputes Also Involved L Bonds
Between 2022 and 2024, three other parties of investors lodged disputes involving Mr. Shimshidian that his member firm settled. These claims detailed allegations of fraud, violations of state and federal law, negligence, Regulation Best Interest violations, and breach of fiduciary duty. Like the pending dispute, they stemmed from purchases of GWG L Bonds. His broker-dealer firm settled the disputes for more than $222,000 in total.
What Are GWG L Bonds?
Texas-based firm GWG Holdings filed for bankruptcy in April 2022, according to news reports and legal filings. The company had previously marketed “L Bonds,” investment products that purportedly raised investor funds to buy secondary-market life insurance policies. As GWG explained in its own offering materials, these investments were both complex and risky, suitable for investors with “substantial financial resources and with no need for liquidity.” The company was under SEC investigation when it filed for bankruptcy, and the regulator has since filed charges against a broker-dealer firm that marketed the L Bonds. Before the company filed for bankruptcy, it defaulted on its obligations to bond investors and stopped issuing them.
If you lost money investing in GWG L Bonds, you may be able to pursue a recovery through the FINRA arbitration process. This means you’d file a claim against the firm that marketed the investments to you. If you secure a recovery through this process, you will still be eligible for payments, if any, issued through GWG Holdings’ bankruptcy proceedings.
FINRA: Stefan Shimshidian Based in White Plains
Mr. Shimshidian started working as a broker in 1999, when he registered with Citicorp Investment Services. Over the years, he worked at firms including Quick & Reilly, Clarke Dodge & Company, and Allied Beacon Partners. He joined his current member firm, Cabot Lodge Securities, in 2013. Still with the firm today, he is based at its office in White Plains, New York. Boasting 25 years of experience as a broker, he has completed four industry exams, including the Series 65 and the Series 63.
GWG L Bond Investors Have Recovery Options
Have you lost money investing in GWG L Bonds or other products recommended by Stefan Shimshidian? You may have recovery options. The dedicated investor advocates at MDF Law have proven records of experience, collecting substantial recoveries for the victims of investment fraud. We accept cases on a contingency basis, meaning our clients only pay a fee if they win their case. Call 800-767-8040 today for a free consultation with our team.