FINRA Suspends Broker Alan Mason After GWG Holdings L-Bonds Sales

Alan Mason (CRD# 1302190, a/k/a Alan M Mason, Alan Mark Mason, Alan Mason) is a registered broker and previously registered investment advisor currently registered with Bradley Woods & Co. LTD. (CRD# 13660) of New York, NY.  His most recent previous employers include Westpark Capital, Inc. (CRD# 39914), Wilmington Capital Securities, LLC (CRD# 133839), and Forefront Capital Markets, LLC (CRD# 151812), all of New York, NY. He has been in the industry since 1984.

During Mason’s employment with Westpark Capital in July of 2020, he recommended to one client that she invest 20% of her liquid net worth into the speculative and risky GWG Holdings L-Bonds. The investment was not in the customer’s best interest based on her investment profile and goes against Regulation Best Interest.

The client opened her Westpark account with Mason. She indicated a moderate risk tolerance and a liquid net worth between $200,00 and $500,000, with an investment objective was growth and income with no speculation.

Mason recommended investing $50,000 in the L-Bonds during the third offering in February of 2020. In July of 2020, Mason recommended an additional $50,000 in the fourth offering, earning $1,324.38 in commission. This was approximately 20% of her liquid net worth invested in L-Bonds and was not suitable nor in her best interest after the second $50,000 because of the high degree of risk.

Following two investments into the L-Bonds in January of 2022, the company defaulted on its obligations to investors and ceased selling them. Four months later, GWG Holdings filed for bankruptcy.

Mason violated Exchange Act Rule 15/-1 (a)(I) and violated FINRA Rule 2010, leading to a two-month suspension in all capacities, a fine of $5,000, and disgorgement of his commission of $1,324.38 plus interest. The suspension began on 8/4/2024 and ends on 10/4/2024.

Separately, a customer dispute filed on 8/16/2022 included allegations of breach of fiduciary duty and unsuitability. Although GWG Holdings was not mentioned, it is indicated the company that sold the securities later filed Chapter 11 bankruptcy. The client is requesting damages of $5,000,000, and the claim is currently listed as “pending.”

A prior claim filed on 6/7/2022 included allegations of “Improper Recommendation; Failure to perform Due Diligence; Unsuitability.”  This client requested damages of $100,000, and the firm settled the claim for $33,200.

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