FINRA fined Kingswood Capital Partners $150,000 for failing to supervise a former representations recommendations of illiquid alternative investments to senior customers, which investigators flagged as unsuitable. Kingswood Capital Partners is headquartered in San Diego, California.
In its report, FINRA wrote that Kingswood Capital failed to supervise alternative investment sales, specifically failing to supervise a former representative's recommendations of the GWG L Bonds product, which is an alt investment.
FINRA previously fined and suspended former Kingswood Capital Partners broker Phillip Curtis Anderson for unsuitably recommending senior customers invest in GWG L Bonds.
In our article, "What Went Wrong with GWG L Bonds?", we track GWG's significant risks that ultimately resulted in massive losses and bankruptcy proceedings that have left investors holding the bag and standing to lose substantial portions of, if not their entire, investments.
According to FINRA's AWC against Kingswood, a former representative unsuitably recommended multiple elderly customers invest in GWG L Bonds. Kingswood then approved the sales notwithstanding red flags indicating the risky product was not suitable for the customers to whom GWG was recommended.
In some cases, this resulted in high concentrations, or the customers having high percentages of their net worth concentrated in GWG L Bonds. When we wrote about the Phillip Anderson allegations in July 2025, we noted that one customer purportedly invested 96% of their net worth in GWG, which greatly exceeded concentration limits for suitability.
If you invested with Kingswood Capital Partners or any broker, investment adviser, or firm whose unsuitable alternative investment recommendations, such as overconcentration in GWG L Bonds, has proven harmful to your investments or interests, please call our experienced FINRA arbitration attorneys at The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.