GWG Holdings has become a focal point in recent discussions about alleged misrepresentation and investment losses connected to financial advisor Alex Maltez. Investors were drawn to GWG Holdings‘s complex products, marketed with the promise of attractive returns. However, a string of customer complaints has raised important questions about the advice provided by Alex Maltez during his time at various securities firms, including Newbridge Securities Corporation and his current role with Merrill Lynch.
The Allegations Against Alex Maltez: A Look at Recent Complaints
A well-known adage attributed to Benjamin Franklin tells us, “A dollar saved is a dollar earned.” Yet, for some investors, a dollar invested can become a dollar lost when advice is questionable or risks are not fully understood. This scenario is at the heart of one of the most substantial complaints against Alex Maltez (CRD# 6506116), now registered with Merrill Lynch in Winter Park, Florida.
In November 2025, a customer complaint exceeding $651,000 was filed against Alex Maltez, alleging that, while at Newbridge Securities Corporation, he recommended investments in GWG products that were not suitable for the investors’ profiles. These products, issued by GWG Holdings, focused on purchasing life insurance policies in the secondary market. Although this strategy could yield high returns, it also exposed investors to significant risk, particularly when the company filed for bankruptcy in April 2022. This filing left thousands facing considerable financial losses.
According to the claims, Mr. Maltez breached his contract, misrepresented key information, failed in his fiduciary obligation, and violated federal securities laws, including the SEC’s Regulation Best Interest. The complaint, which remains pending, highlights damages totaling $651,709. This is part of a pattern: in January 2025, another investor brought forth similar allegations regarding GWG investments, claiming breach of fiduciary duty and Regulation Best Interest violations. That dispute settled in December 2025 for $27,500. Just months prior, in October 2024, a third complaint with nearly identical claims was settled for $55,000 in November 2025.
| Date Filed | Nature of Complaint | Status | Award/Settlement |
|---|---|---|---|
| Nov 2025 | GWG investments; breach of contract; misrepresentation; Reg BI | Pending | $651,709 (claimed) |
| Jan 2025 | GWG investments; fiduciary breach; Reg BI | Settled | $27,500 |
| Oct 2024 | GWG investments; similar allegations | Settled | $55,000 |
| 2022 | Alternative investments; broader allegations | Settled (2023) | $30,000 |
Notably, a fourth complaint from 2022 broadened the scope beyond just GWG, alleging unsuitable recommendations in other alternative investments and failures regarding supervisory controls, contract obligations, and proper disclosures under FINRA Rule 2210. This was resolved in 2023 for $30,000.
Background of Alex Maltez: Experience and Regulatory Record
Alex Maltez brings nine years of experience to the securities industry and is currently based in Winter Park, Florida. Since October 2022, he has been dually registered as both a broker and investment advisor at Merrill Lynch. His prior affiliations include Newbridge Securities Corporation, Corecap Securities, USA Financial Securities, and United Planners’ Financial Services of America. He is licensed to operate in nine states: Alabama, Connecticut, Florida, Georgia, Massachusetts, New Jersey, New York, Pennsylvania, and Texas.
The presence of multiple complaints on Mr. Maltez’s record is notable, particularly given data from the Public Investors Advocate Bar Association, which finds that only about 1% of financial advisors receive multiple customer complaints throughout their careers. This statistically rare occurrence places Alex Maltez amongst a select group of advisors requiring additional scrutiny. You can learn more about advisor complaints here.
Most of the recent complaints focus on GWG investments, underlining a pattern of unsuitable or inadequately explained recommendations. This pattern, especially in the context of alternative and illiquid investments, is a well-known risk area in the financial advisory landscape. For example, according to Investopedia’s guide to investment fraud, inappropriate advice or lack of adequate disclosure can lead to significant investor losses—which has been observed repeatedly in GWG-related cases across the industry.
Understanding FINRA Rule 2210 and SEC Regulation Best Interest
Investor protection rules such as FINRA Rule 2210 and the SEC’s Regulation Best Interest (Reg BI) are designed to ensure transparent, honest communication between brokers and their clients.
- FINRA Rule 2210: Governs all communications between financial professionals and the investing public. Its requirements include fairness, good faith, balance of information, and the prohibition of false or misleading statements or omissions. Financial advisors must present both the benefits and the risks of any investment product, especially those as complex as GWG’s structured offerings.
- Regulation Best Interest (Reg BI): Enacted in June 2020, Reg BI requires broker-dealers to place client interests ahead of their own when making recommendations. Advisors must consider each customer’s profile and must not recommend investments unless they reasonably believe the investment is in that client’s best interest.
For advisors recommending GWG products, this means candidly discussing the illiquid and risky nature of those investments, not simply emphasizing potential returns. Advisors are expected to clearly disclose all material risks, including the possibility of principal loss, to prevent misunderstandings and avoid claims of misrepresentation or omission.
Investment Fraud: A Real-World Concern
Unfortunately, investors continue to suffer losses due to investment fraud or unsound advice. A 2023 FINRA report noted that unsuitable recommendations by advisors remain one of the top investor complaints. Additionally, according to Forbes, the U.S. sees thousands of investment fraud allegations each year, from outright scams to cases of misleading or non-transparent advice. Patterns of similar complaints, like those surrounding Alex Maltez and GWG investments, may indicate a potential problem and should prompt heightened vigilance from clients and compliance professionals alike.
Consequences and Lessons for Investors
The consequences for Mr. Maltez include the permanent disclosure of these customer complaints on his BrokerCheck record, along with settlements totaling over $112,500 across three resolved cases. The pending complaint alleging damages of $651,709 could further impact his record if it results in a settlement or award.
For investors, several key lessons should be drawn from these cases:
- Always check the BrokerCheck record: Before entrusting your money to a financial professional, review their disciplinary and customer complaint history. Advisors with prior complaints are statistically more likely to be subject to further complaints.
- Treat complex alternative investments with caution: High yields often come with high risks. Alternative products like GWG should be fully understood, including their illiquidity and exposure to market downturns.
- Ask comprehensive questions: Ensure that your advisor explains the investment in plain terms and transparently reveals all risks. If an explanation seems unclear or superficial, consider seeking a second opinion.
- Understand that settlements reflect concerns: While a settlement does not imply guilt, multiple settlements over similar complaints may reveal issues with disclosure, product suitability, or supervision.
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