A broker who was barred by the Financial Industry Regulatory Authority Inc. last year and has dozens of so-called "disclosure" marks on his work history is the latest to be named in a customer complaint alleging negligence over the sale to clients of GWG L Bonds, whose parent firm declared bankruptcy in April.
Marc Korsch was booted from the retail securities industry last December after he failed to cooperate in a Finra investigation, according to his BrokerCheck report, which reveals a staggering 33 disclosure items, ranging from pending customer complaints to financial liens from the IRS.
Korsch was a broker in Sarasota, Florida, for 12 years with half-a-dozen firms, with the longest stint at Centaurus Financial Inc., a significant seller of the GWG L bonds, according to industry attorneys and executives. He was registered with Centaurus from 2014 to 2021.
Korsch isn't named in the Finra arbitration complaint but Centaurus Financial is, according to a statement by Marc Fitapelli, an attorney with MDF Law.
“I’m not even in the business anymore,” Korsch said Tuesday morning when reached by phone. Paul King, general counsel at Centaurus Financial, didn't return a call to comment.
GWG Holdings Inc. sold $1.6 billion in bonds backed by life settlements through a network of about 140 independent broker-dealers.
"The recent complaint filed against Centaurus Financial concerns Marc Korsch’s recommendation of GWG L Bonds," according to the statement by Fitapelli. "The Finra complaint against Centaurus alleges that the broker-dealer was negligent by approving GWG L Bonds for sale to its customers," who were conservative investors and mostly elderly, according to the attorney.
GWG L Bonds were also marketed as a safe investment that was guaranteed. and as a conservative investment with a guaranteed monthly payment, according to the attorney's statement.
"The clients met [Korsch] through a free retirement seminar he was doing at a local university," Fitapelli said in an interview Tuesday.
While industry statistics pointing to a succession crisis can cause alarm, advisor-owners should be free to consider a middle path between staying solo and catching the surging wave of M&A.
New joint research by T. Rowe Price, MIT, and Stanford University finds more diverse asset allocations among older participants.
With its asset pipeline bursting past $13 billion, Farther is looking to build more momentum with three new managing directors.
A Department of Labor proposal to scrap a regulatory provision under ERISA could create uncertainty for fiduciaries, the trade association argues.
"We continue to feel confident about our ability to capture 90%," LPL CEO Rich Steinmeier told analysts during the firm's 2nd quarter earnings call.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
