Arete Wealth Management Pays Over $1 Million in Investor Claims
June 18, 2024
Arete Wealth Management, a Chicago-based broker-dealer firm focused on alternative investments, has paid out more than $1.1 million in settlements to investors in Q1 2024. The particular reasons for the settlements remain unclear, but Arete Wealth states that most of them result from an advisor who is no longer an employee.
Arete Wealth has recently expanded, acquiring Center Street Securities in 2021. However, Center Street ceased operations in November 2023. Most notably, Center Street’s advisors sold a significant amount of L Bonds backed by GWG Holdings, a company that filed for bankruptcy in 2022. As a result, investors were left with potentially worthless holdings.
Investor claims against Arete Wealth are not a new phenomenon. In February 2024, they lost a $75,000 FINRA arbitration case related to GWG L Bonds. In 2021, they lost a $515,000 case regarding high-risk investment vehicles managed by GPB Capital Holdings, another scrutinized firm facing a court-ordered takeover.
Although Arete Wealth boasts a network of 49 offices and 230 financial advisors working with over 50 alternative asset managers, the recent settlements raise questions about their investment recommendations and handling of client funds.
Securities fraud attorney Bruce Oakes of Oakes & Fosher, LLC, was recently interviewed by InvestmentNews regarding the actions of Arete Wealth Management and Center Street Securities. Read the full article using the link below, and contact Oakes & Fosher now if you’ve suffered losses at the hands of these firms.
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