2024-07-31 sec-litreleases litigation_release 64 KB 2,015 chars

SEC v. Western International Securities, Inc.; and Five individual brokers, No. LR-26065, Central District of California (July 31, 2024) — Press Release

raw: Western International Securities, et al.,

Western International Securities, et al.,, No. LR-26065 (July 31, 2024)

Caption: SEC v. Western International Securities, Inc, et al.

summary

Western International Securities and five brokers settled SEC allegations of Regulation Best Interest violations regarding the sale of high-risk GWG Holdings L Bonds.

paragraph

Western International Securities and five individual brokers settled SEC charges for violating Regulation Best Interest through the sale of high-risk L Bonds. The firm must pay $34,468 in disgorgement plus a $160,000 civil penalty, while each broker faces $12,500 in individual penalties and disgorgement of commissions. All defendants consented to permanent injunctions against future Reg BI violations without admitting or denying the allegations.

narrative

The SEC announced a settlement with Western International Securities, Inc. and five registered representatives regarding violations of Regulation Best Interest (Reg BI). The case centered on the sale of high-risk debt securities known as L Bonds issued by GWG Holdings, Inc. Western agreed to pay $34,468 in disgorgement of commissions and fees, plus a $160,000 civil penalty. Each of the five individual brokers must also pay disgorgement of their commissions and a $12,500 civil penalty. All parties consented to final judgments that permanently enjoin them from future Reg BI violations. The settlement, which includes prejudgment interest, remains subject to court approval. This resolution concludes litigation that was originally filed in June 2022.

Enriched metadata

Scheme: broker-dealer-fraud (95%)
Court: Central District of California
Outcome: settled
Civil penalty: $160,000
Entity: Western International Securities, Inc.
CIK: 0001542334

Classified broker-dealer-fraud(confidence 95%). EDGAR detection: forms Form D· recall 29% / precision 9%. detection rule →

Extracted insights

Dollar amounts 3

$160K $160,000 $100K–$1M
$34K $34,468 $10K–$100K
$13K $12,500 $10K–$100K

Entities 1

agency Securities and Exchange Commission

Triples 11

U.S. Securities and Exchange Commission Announces Settlement of Regulation Best Interest Matter with Western International Securities, Inc. and Five Individual Brokers
The SEC filed a Motion by consent to settle the ongoing litigation in SEC v. Western International Securities, Inc. et al.
The SEC filed its complaint in June 2022 against Western International Securities, Inc. and five of its registered representatives
Western consented to the entry of a final judgment that would permanently enjoin it from violating Reg BI
Western orders to pay disgorgement of the commissions and fees Western retained from all post-Reg BI sales of L Bonds by the five individual defendants totaling $34,468, plus prejudgment interest
Western orders a civil penalty of $160,000
The five individual defendants consented to the entry of final judgments that would permanently enjoin them from violating Reg BI
The five individual defendants orders to pay disgorgement of all the commissions they received for their post-Reg BI recommendations of L Bonds, prejudgment interest
The five individual defendants orders individual civil penalties of $12,500
The proposed settlements are subject to approval by the Court
The SEC’s litigation in Securities and Exchange Commission v. Western International Securities, et al. has been led by Ariella Guardi and Timothy Leiman with assistance from Jonathan Epstein and Matthew Connelly, all of the Chicago Regional Office

View original SEC litigation releasesec.gov

Extracted body text (2,015c)

U.S. SECURITIES AND EXCHANGE COMMISSION Lit. Release No. 26065 / July 31, 2024 Securities and Exchange Commission v. Western International Securities, et al., 22-cv-04119 (C.D. Cal., Complaint filed June 15, 2022) SEC Announces Settlement of Regulation Best Interest Matter with Western International Securities, Inc. and Five Individual Brokers The SEC announced today that it had filed a Motion by consent to settle the ongoing litigation in SEC v. Western International Securities, Inc. et al., alleging violations of Rule 15l-1(a)(1) of the Securities Exchange Act of 1934 (“Reg BI”) based on the sale of high-risk debt securities known as L Bonds, which were issued by GWG Holdings, Inc. The SEC filed its complaint in June 2022 against Western International Securities, Inc. (“Western”) and five of its registered representatives. Without admitting or denying the allegations of the SEC’s complaint, Western has consented to the entry of a final judgment that would permanently enjoin it from violating Reg BI and orders Western to pay disgorgement of the commissions and fees Western retained from all post-Reg BI sales of L Bonds by the five individual defendants totaling $34,468, plus prejudgment interest, as well as a civil penalty of $160,000. The five individual defendants have also consented, without admitting or denying the allegations of the SEC’s complaint, to the entry of final judgments that would permanently enjoin them from violating Reg BI and orders them to pay disgorgement of all the commissions they received for their post-Reg BI recommendations of L Bonds, prejudgment interest, as well as individual civil penalties of $12,500. The proposed settlements are subject to approval by the Court. The SEC’s litigation in Securities and Exchange Commission v. Western International Securities, et al., Civil Action No. 22-cv-04119 (C.D. Cal.) has been led by Ariella Guardi and Timothy Leiman with assistance from Jonathan Epstein and Matthew Connelly, all of the Chicago Regional Office.

OCR text (2,015c · html-text · 99% conf)