Kingswood Capital Partners, LLC and Kingswood Wealth Advisors, LLC are two firms currently associated with Gregory John Richards (CRD #1339012), a financial advisor with a decades-long career in the securities industry. While many investors seek the expertise and guidance of registered representatives to achieve their financial goals, recent allegations and customer disputes involving Gregory Richards highlight the critical importance of due diligence when selecting a financial advisor.
| Category | Details |
|---|---|
| Advisor’s Name | Gregory John Richards |
| CRD Number | 1339012 |
| Current Firms | Kingswood Capital Partners, LLC; Kingswood Wealth Advisors, LLC |
| Exams Passed | SIE, Series 7, Series 6, Series 66, Series 63 |
| Prior Firms | DST Wealth Management LLC; Benchmark Investments, LLC (also Boral Capital f/k/a Benchmark Investments); Centaurus Financial, Inc. |
| Customer Disputes | 4 total (2 pending, 2 finalized/not summarized) |
| Pending Disputes | 4/23/2026: $100,000 (GWG Bond, suitability); 10/23/2025: $175,000 (Alternative/unsuitable) |
The Allegations: Understanding Customer Complaints Versus Gregory Richards
According to FINRA BrokerCheck, Gregory Richards currently has four customer dispute disclosures on record. Two are listed as pending, each involving substantial requested damages and serious allegations related to alleged investment misrepresentation and unsuitable recommendations.
- April 23, 2026: One customer claims that Gregory Richards, at what is now known as Boral Capital f/k/a Benchmark Investments, recommended GWG L Bonds (a high-risk alternative investment) characterizing them as “safe” and “low risk.” The customer’s primary objective was to preserve principal, and the claim seeks $100,000 in damages. This claim is currently pending.
- October 23, 2025: A second customer alleges that Richards recommended and misrepresented another unsuitable, high-risk alternative investment—a situation that also involves allegations of breach of fiduciary duty. The damages sought are $175,000, with the claim still pending as of this writing.
There are two additional customer disputes on record, though the details are not summarized in public filings. Collectively, four customer disputes suggest a pattern that potential clients and investors should recognize and evaluate before entrusting their assets to any financial advisor.
- GWG L Bonds described as “safe” and “low risk”
- Alternative investments pitched as income-producing despite a principal-preservation client profile
- Alleged misrepresentations and breach of fiduciary duty
- Two pending customer claims, totaling $275,000 in damages
It is critical to remember that these are only allegations and no wrongdoing has been proven. However, the repeated nature of such customer complaints warrants close attention and underscores the importance of full transparency in the advisory relationship.
What Do the FINRA Rules Say?
To understand why these allegations matter, it helps to know the rules that apply to registered representatives like Gregory John Richards.
- FINRA Rule 2111 – Suitability: Brokers must only recommend securities or investment strategies that they have a reasonable basis to believe are suitable for the client’s age, financial status, goals, and risk tolerance. A product meant to preserve principal should align with a client’s investment objectives—not expose them to unnecessary risk.
- FINRA Rule 2020 – Use of Manipulative, Deceptive or Other Fraudulent Devices: This rule flatly prohibits fraudulent, deceptive or manipulative acts in securities transactions. Misrepresenting a high-risk product as “safe” or “low risk” may violate this standard if proven true.
- Regulation Best Interest (Reg BI): Enforced by the SEC since June 2020, Reg BI requires brokers to put clients’ interests ahead of their own. They must fully disclose conflicts, employ diligence and skill in forming recommendations, mitigate conflicts of interest, and maintain compliant firm-wide practices. Learn more about Reg BI on Investopedia.
If a broker is compensated more for recommending one product over another, this incentive must be disclosed—and any recommendation must be based on the client’s best interest, not the advisor’s commission.
Who Is Gregory John Richards? Background and Experience
Gregory John Richards has a long-standing industry history, having passed key FINRA and industry qualification exams:
- Securities Industry Essentials (SIE)
- Series 7
- Series 6
- Series 66
- Series 63
He is currently registered with Kingswood Capital Partners, LLC and Kingswood Wealth Advisors, LLC. His career also includes tenures at DST Wealth Management LLC, Benchmark Investments, LLC (now Boral Capital), and Centaurus Financial, Inc..
Broker background and firm history are significant considerations. According to academic research published by the National Bureau of Economic Research, approximately 7% of financial advisors have been associated with misconduct, and nearly half are rehired by other firms within a year. This statistic alone illustrates why proper vetting and research are critical when choosing anyone to manage your investments.
GWG L Bonds and Investment Product Risks
The central product at issue in some of the pending disputes is the GWG L Bond, a high-risk alternative investment offered by GWG Holdings. These bonds attracted attention after GWG Holdings declared bankruptcy in 2022, leaving thousands of investors facing significant losses despite marketing materials that described the bonds as income-generating and relatively safe alternatives to more traditional investments.
This situation demonstrates how misleading or vague financial advice can cause severe financial harm. According to industry sources, investment fraud and unsuitable product recommendations are a leading cause of investor complaints. In 2022 alone, FINRA received thousands of arbitration filings alleging investment losses due to unsuitable or misrepresented products.
What Are the Consequences of Unsuitable Investment Advice?
When allegations of unsuitable recommendations or misrepresentations are made against an advisor like Gregory Richards, the fallout can be significant, both for advisors and for clients.
- For investors: Real losses, often involving retirement or college funds, emergency savings, or life-long nest eggs.
- For advisors: FINRA arbitration can lead to monetary awards to customers, regulatory penalties, or even permanent industry suspension or expulsion.
- For firms: Reputational damage, regulatory scrutiny, and loss of public trust.
GWG L Bond investors, for example, ended up with little recourse after the issuer’s bankruptcy, reinforcing the value of informed, diversified, and risk-appropriate decision-making. Inadequate disclosures or mischaracterizations around high-risk private placements have long been highlighted by regulators as a source of elevated complaint
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