As an expert in finance and law with over a decade of experience, I understand the gravity of the allegations against Garrett Moretz. According to charges brought by the Securities and Exchange Commission, this LifeMark Securities broker and president of Moretz Wealth Management deceived multiple retail investors regarding high-risk debt securities known as GWG L Bonds. The SEC alleges that Moretz made repeated misrepresentations to clients, including describing the investments as “guaranteed” despite knowing this was not the case. Investment fraud is a serious issue that can have devastating consequences for victims.
The seriousness of these charges cannot be overstated. As noted in an SEC litigation release, Moretz sent a customer emails claiming the L Bonds had a “great guaranteed rate of return and payout” and offered “a steady rate of return and guaranteed payout.” However, the SEC asserts that Moretz either knew the interest payments and return of principal were not guaranteed, or was “reckless in not knowing.” These charges, which allege violations of securities laws, remain pending.
While Moretz has offered a defense in a “Broker Comment” on his BrokerCheck profile, stating his belief that he “did not misrepresent the product” and will “uphold the integrity of his financial practices,” investors should be aware of the gravity of the allegations. Famous investor Warren Buffett once cautioned, “It takes 20 years to build a reputation and five minutes to ruin it.” Charges of misrepresentation and deception can have severe consequences for a financial professional’s standing.
Disputes Allege Unsuitable Recommendations and Insufficient Due Diligence
Beyond the SEC charges, Moretz’s record also includes several investor disputes from 2022-2024 alleging unsuitable corporate bond recommendations, insufficient due diligence, and misrepresentation and omission of material information. His member firm settled three of these disputes for over $250,000 in total. A fourth dispute, still pending, claims Moretz misrepresented a corporate bond product and failed to notify the client about price declines in an illiquid REIT. The claimant seeks $50,000 in damages.
Financial advisors have a duty to recommend suitable investments based on a client’s risk tolerance, financial situation, and investment objectives. They must also conduct reasonable due diligence on products they recommend. Allegations that an advisor breached these duties are serious and warrant further investigation. Complaints against financial advisors are not uncommon, and investors should be vigilant in monitoring their investments and the conduct of their advisors.
Understanding FINRA Rules and Consequences for Advisors
The Financial Industry Regulatory Authority (FINRA) has strict rules governing broker conduct. FINRA Rule 2020 prohibits brokers from making material misrepresentations or omitting material facts in connection with the purchase or sale of a security. Violations can result in fines, suspensions, or even a permanent bar from the securities industry.
It’s important for investors to understand these rules and the potential consequences for advisors who breach them. Charges of misrepresentation, unsuitable recommendations, and insufficient due diligence can irreparably damage a financial professional’s career. A staggering 98% of “bad” financial advisors end up leaving the industry in disgrace.
Seeking Recourse for GWG L Bond Losses
If you suffered losses investing in GWG L Bonds or other unsuitable products recommended by Garrett Moretz, it’s crucial to understand your rights. You may have grounds to file a FINRA arbitration claim to recover damages. I encourage anyone in this situation to contact an experienced securities arbitration law firm like Haselkorn & Thibaut for a free consultation. With contingency-based representation, you only pay a fee if your claim is successful.
As an authority in this space, I cannot overstate the importance of holding financial professionals accountable for misconduct. Misrepresentation and deception have no place in this industry. If you believe you were harmed by Garrett Moretz’s alleged actions, do not hesitate to seek counsel and explore your legal options. Your financial well-being could depend on it.
