Scot Barringer

ChapmanAlbin is investigating claims on behalf of investors who purchased GWG L Bonds based on recommendations from financial advisor Scot Barringer.

According to a recent FINRA disciplinary action, Barringer has been suspended for three months and fined $5,000 for recommending unsuitable investments in speculative GWG L Bonds to multiple customers. FINRA found that from October 2020 through February 2021, Barringer advised four clients—including retirees and a nonprofit—to invest in L Bonds without having a reasonable basis for those recommendations based on their financial profiles and risk tolerance.

The investigation also revealed that Barringer caused his firm, American Trust Investment Services, to maintain inaccurate records by underreporting how much of each client’s net worth was being allocated to these risky investments. In some cases, between 22% and 72% of the clients’ liquid net worth ended up concentrated in alternative investments—far beyond typical risk limits for most investors.

GWG Holdings defaulted on its bond obligations in January 2022 and filed for bankruptcy in April 2022, causing widespread investor losses. Barringer had previously faced regulatory action in the 1990s and recently settled arbitration claims with customers who alleged he misrepresented L Bond investments.

If you were sold GWG L Bonds or other alternative investments by Scot Barringer and have experienced financial losses, contact ChapmanAlbin today. We are actively investigating cases involving Barringer and helping investors pursue recovery.

Call 1-877-410-8172 or visit chapmanalbin.com for a free consultation.