Last Updated: November 2024 (Raleigh, North Carolina)
National securities fraud lawyers at Patil Law P.C. are investigating Capital Investment Group advisor Bowman Nicholson (CRD #6050450) regarding a pending FINRA arbitration involving allegations of unsuitable recommendations of high-risk GWG L-Bonds that subsequently went into default following GWG Holdings’ bankruptcy.
Critical Insights About Raleigh, NC Financial Advisor Bowman Nicholson
- Advisor Name: Bowman James Nicholson
- CRD: 6050450
- Location: Raleigh, NC
- Current Employer: Capital Investment Group, Inc.
- Classification: Financial Advisor/Registered Representative
- Primary Location: Raleigh, NC
- Can Bowman Nicholson be sued in FINRA arbitration: Yes
- Recent Legal Action: FINRA arbitration seeking $100,000-$500,000 in damages
- Professional Designations: Certified Financial Planner (CFP)
If you have suffered investment losses in GWG L-Bonds or other investments recommended by Mr. Nicholson, please contact Attorney Patil online or (800) 950-6553 for a free initial consultation.
Details of Current FINRA Arbitration
GWG L-Bond Allegations (Filed September 2024)
A customer has filed a FINRA arbitration (Case #24-01962) alleging:
- Breach of contract and warranties
- Violations of state securities statutes
- Breach of fiduciary duty
- Vicarious liability claims
- Damages between $100,000-$500,000
- Losses stemming from GWG Holdings’ bankruptcy
The customer held approximately $70,000 in GWG L-Bonds at the time of GWG Holdings’ bankruptcy filing in April 2022.
Analysis of Investment Recommendations
GWG L-Bond Background and Risks
GWG L-Bonds were complex, high-risk investments that:
- Were backed by life insurance policies
- Offered above-market interest rates
- Required significant due diligence
- Carried substantial liquidity risks
- Were suitable only for sophisticated investors
- Filed for bankruptcy protection in 2022
Regulatory Framework and Investor Protection
SEC Regulation Best Interest
The SEC’s Regulation Best Interest establishes heightened standards for broker-dealer recommendations of complex products like L-bonds. This regulation requires thorough analysis of risks and rewards, careful evaluation of client suitability, and complete disclosure of all material facts. For complex products like GWG L-bonds, advisors must demonstrate particular care in ensuring recommendations align with client sophistication levels and risk tolerance.
FINRA Rules and Their Significance
FINRA Rule 2111 (Suitability) creates a multi-layered framework for evaluating investment recommendations. For complex products like L-bonds, the rule requires enhanced due diligence including:
- Reasonable-basis suitability (understanding the product)
- Customer-specific suitability (matching to client needs)
- Quantitative suitability (appropriate concentration levels)
FINRA Rule 2310 (Direct Participation Programs) specifically governs the sale of alternative investments like L-bonds. This rule requires members to:
- Conduct thorough due diligence on the investment
- Maintain detailed records of suitability determinations
- Provide enhanced disclosure of risks and features
- Ensure reasonable pricing and compensation
FINRA Notice 12-03 provides additional guidance on complex products, requiring firms to:
- Perform heightened supervision of complex product sales
- Implement additional training requirements
- Enhance their due diligence processes
- Monitor concentration and liquidity risks
Professional Background and Experience
Nicholson’s career includes positions at:
- Capital Investment Group (2016-Present)
- Merrill Lynch (2012-2016)
Professional Qualifications:
- Series 7 (General Securities Representative)
- Series 66 (Combined State Law)
- Certified Financial Planner (CFP) designation
Red Flags for GWG L-Bond Investors
- GWG Holdings bankruptcy filing in April 2022
- Default on interest and principal payments
- Complex investment structure
- High-risk nature of the investment
- Limited liquidity options
- Above-market interest rates suggesting heightened risk
Implications for Current and Former Clients
Investors who purchased GWG L-Bonds should review:
- Initial investment recommendations
- Disclosed risks versus actual risks
- Concentration levels in their portfolio
- Suitability of the investment
- Available recovery options
Patil Law P.C. Will Help You Recover Your Investment Losses
If you invested in GWG L-Bonds or other alternative investments through Bowman Nicholson, contact Attorney Patil online or call (800) 950-6553 for a free consultation to discuss your legal options. Cases handled on contingency – no recovery, no fee.
