A complaint filed by the Financial Industry Regulatory Agency (FINRA) against Jonathan Jay Greenfield of West Hills, California alleges the former representative of Arete Wealth Management (AWM) made fraudulent misrepresentations and omissions through emails with clients regarding features of renewable secured debentures. FINRA alleges that during the period of March 2012 to October 2012, Mr. Greenfield made material and sometimes intentional misrepresentations to three customers regarding connections with their purchases of GWG Renewable Secured Debentures.
According to FINRA, Mr. Greenfield made similar misrepresentations to more than fifty other clients who did not end up buying the debentures during this period. In addition, FINRA alleges that between September 2012 and November 2012, Mr. Greenfield “provided twelve customers with GWG sales literature that stated GWG was secured by life insurance policies owned by GWG.” However, the debentures were not secured by insurance policies. These alleged misrepresentations and omissions are violations of NASD Rule 2210 and FINRA Rule 2010. FINRA’s enforcement department has requested sanctions to be imposed and for further findings into which Mr. Greenfield willfully violated the Exchange Act. Continue Reading