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Alarming Pattern of Customer Disputes: What Investors Need to Know
If you’ve invested with John Gerard Forrester Jr. (CRD# 728188), currently affiliated with Newbridge Securities Corporation, your financial future may be at risk. Our securities fraud attorneys are actively investigating Mr. Forrester’s investment practices following a disturbing pattern of customer complaints and regulatory issues that raise serious concerns about his handling of client accounts.
Red Flags in Forrester’s Regulatory Background
The FINRA BrokerCheck report for John Gerard Forrester Jr. reveals a troubling history:
- 10 Customer Disputes: Multiple allegations of breach of fiduciary duty, negligence, and unsuitable investment recommendations
- 1 Regulatory Event: FINRA suspension in 2010 for failure to comply with an arbitration award
- 1 Financial Disclosure: A bankruptcy filing in 2017 (dismissed in 2018)
- Recent Customer Complaints: Ongoing disputes involving GWG alternative investments
Alternative Investment Concerns: GWG Holdings Under Scrutiny
Several recent customer complaints against Forrester involve GWG Holdings investments. These alternative investments have come under intense scrutiny following GWG’s bankruptcy filing in April 2022, which left many investors with significant losses. The complaints against Forrester allege:
- Breach of fiduciary duty
- Negligence in investment recommendations
- Failure to disclose material risks
- Unsuitable investment advice
According to FINRA records, six customer disputes against Forrester since 2023 have resulted in settlements totaling over $282,000, with no contribution from Forrester personally in most cases.
Professional Background: A Career Spanning Decades
John Gerard Forrester Jr. has been in the securities industry since 1981, when he passed his Series 7 examination. His employment history includes:
- Newbridge Securities Corporation (2010-Present)
- Wasserman & Associates, Inc. (2000-2010)
- K. Wasserman & Associates, Inc. (1995-1999)
- Dean Witter Reynolds Inc. (1991-1995)
- Prudential Securities Incorporated (1988-1991)
- Several other firms dating back to 1981
Forrester is currently registered in 17 states and territories, working from Newbridge Securities Corporation’s Boca Raton, Florida office.
Understanding Alternative Investments and Their Risks
Alternative investments like those involved in complaints against Forrester often carry significant risks that may not be suitable for all investors:
Delaware Statutory Trusts (DSTs)
DSTs are complex investment vehicles that allow investors to own fractional interests in large commercial properties. While they offer potential tax advantages through 1031 exchanges, they come with substantial risks:
- Illiquidity: Investors typically cannot access their capital for 5-10 years
- Loss of control: Investors have no management authority
- Single-asset risk: Performance depends entirely on one property
- Tax consequences: Failed 1031 exchanges may trigger substantial tax liabilities
L Bonds and Other Alternative Products
Products like GWG L Bonds were marketed to investors seeking income, but often carried risks that were inadequately disclosed:
- High commissions: Creating potential conflicts of interest
- Limited transparency: Complex structures difficult for average investors to understand
- Concentration risk: Overallocation to a single, high-risk product
- Liquidity concerns: Inability to access funds when needed
Warning Signs of Investment Misconduct
Investors should be alert to these common warning signs of potential broker misconduct:
- Promises of guaranteed returns: No investment can guarantee specific returns
- Pressure to act quickly: Legitimate investments don’t require rushed decisions
- Inadequate documentation: All material risks should be clearly disclosed in writing
- Concentration in one product: Proper diversification is fundamental to risk management
- Recommendation of investments outside the firm: “Selling away” violations are serious regulatory issues
Your Rights as an Investor
As an investor, you have specific legal protections under securities laws and FINRA regulations:
- The right to suitable investment recommendations based on your financial situation, goals, and risk tolerance
- The right to full disclosure of all material facts about recommended investments
- The right to fair dealing and ethical treatment by your financial advisor
- The right to seek recovery through FINRA arbitration when these standards are violated
Recovery Options for Victimized Investors
If you’ve suffered losses while working with John Forrester or another financial advisor, you may have several paths to recovery:
FINRA Arbitration
The most common method for resolving investor disputes:
- Faster than court litigation: Typically resolved within 12-16 months
- Binding decisions: Limited grounds for appeal
- More accessible: Less formal than court proceedings
- Industry expertise: Arbitrators familiar with securities regulations
Securities Class Actions
When many investors have suffered similar losses:
- Strength in numbers: Combining smaller claims for greater impact
- Shared costs: Reducing individual expense of pursuing claims
- Experienced representation: Specialized attorneys handling complex cases
Regulatory Complaints
While not resulting in direct compensation, regulatory actions can support other recovery efforts:
- FINRA investigations: May uncover evidence helpful to private claims
- SEC enforcement: Can impose significant penalties for securities violations
- State securities divisions: Often active in protecting local investors
The Arbitration Process Explained
Understanding what to expect can help you prepare for the recovery process:
- Initial consultation: Discussing your case with experienced securities attorneys
- Case evaluation: Thorough review of account statements, communications, and other evidence
- Statement of Claim filing: Formally initiating the FINRA arbitration process
- Discovery phase: Exchange of relevant documents and information
- Pre-hearing conferences: Addressing procedural matters and selecting arbitrators
- Arbitration hearing: Presenting testimony and evidence to the arbitration panel
- Final award: Binding decision from the arbitrators
Why Timely Action Is Critical
The statute of limitations for investment claims can severely limit your recovery options if you delay:
- FINRA arbitration claims: Generally must be filed within 6 years of the event
- State securities law claims: Often limited to 2-5 years depending on jurisdiction
- Common law claims: Varying time limitations based on state law
Prompt investigation and action are essential to preserving your legal rights.
How Our Securities Attorneys Can Help
Our investment fraud attorneys bring specialized expertise to these complex matters:
- Deep regulatory knowledge: Understanding the nuances of securities laws and FINRA rules
- Forensic financial analysis: Identifying unsuitable recommendations and hidden losses
- Experience with alternative investments: Familiar with the specific products at issue
- Proven recovery record: Successful representation in similar cases
- Resources to take on major firms: Leveling the playing field for individual investors
Take the First Step Toward Recovery
If you’ve invested with John Gerard Forrester Jr. or Newbridge Securities Corporation and experienced significant losses, particularly in alternative investments like GWG products, contact our securities attorneys immediately for a confidential evaluation of your potential claims.
Our experienced team will:
- Review your account documents and investment history
- Identify potential regulatory violations
- Calculate recoverable damages
- Explain your legal options clearly
- Handle all aspects of your case if you choose to proceed
Don’t let investment misconduct derail your financial future. Take action now to protect your rights and pursue the recovery you deserve.
Call 800-950-6553 or complete our online form to schedule your no-obligation case evaluation.
This information is attorney advertising. Past results do not guarantee similar outcomes. This information is not legal advice and does not create an attorney-client relationship.
