March, 2025 | Based in Franklin, NC
Have you suffered investment losses while working with financial advisor Tammie Lyn Farrell? Our securities attorneys are investigating allegations against Ms. Farrell related to unsuitable investment recommendations. Contact us today at Call 800-950-6553 to schedule your free consultation and learn about your options for recovery.
Critical Information About Tammie Lyn Farrell
- Full Name: Tammie Lyn Farrell
- CRD Number: 2475931
- Current Location: Franklin, NC
- Current Employers:
- Capital Investment Advisory Services, LLC (Investment Adviser Representative)
- Capital Investment Group, Inc. (Registered Representative)
- Office Address: 175 East Main Street, Suite E, Franklin, NC 28734
- Registration Status: Currently registered with 1 Self-Regulatory Organization and in 5 U.S. states/territories
- State Licenses: Alabama, Arizona, Florida, Georgia, North Carolina
- Experience: In the securities industry since 1994 (31 years)
- FINRA BrokerCheck: Seven customer disputes, including 4 settled and 3 pending
- Previous Employers: Wells Fargo Advisors, LLC (2000-2012), First Union Brokerage Services, Inc. (2000)
- Other Business Activities: Owner of Farrell Wealth & Associates, LLC
GWG L-Bonds: A Pattern of Problematic Recommendations
Our securities fraud attorneys are currently investigating allegations against financial advisor Tammie Lyn Farrell (CRD# 2475931) involving potentially unsuitable recommendations of GWG Holdings, Inc. L-Bonds. According to FINRA BrokerCheck records, Ms. Farrell has been the subject of seven customer complaints, with all recent disputes specifically involving these high-risk alternative investments that ultimately led to significant investor losses following GWG’s bankruptcy in April 2022.
Currently registered with Capital Investment Advisory Services, LLC and Capital Investment Group, Inc. in Franklin, North Carolina, Ms. Farrell has established a concerning pattern of customer disputes that raise serious questions about her investment recommendations and sales practices.
Understanding GWG L-Bonds and the Bankruptcy
GWG Holdings, Inc. was a financial services company that offered L-Bonds as a way to finance its life settlement business. L-Bonds are high-yield, high-risk debt securities that were marketed to retail investors seeking income. In April 2022, GWG Holdings filed for Chapter 11 bankruptcy protection, leaving thousands of investors with significant losses.
The bankruptcy filing has triggered numerous investor complaints and regulatory investigations across the financial industry. Investors who purchased these products have alleged that financial advisors failed to adequately disclose the risks associated with these complex investments, which were often unsuitable for retail investors, particularly those with conservative or moderate risk profiles.
Tammie Lyn Farrell’s Customer Disputes
According to FINRA BrokerCheck records, Ms. Farrell has been named in seven customer disputes, with multiple cases specifically referencing GWG L-Bonds. Here’s a breakdown of these complaints:
Settled Complaints
- October 2023 Complaint: Clients alleged that Ms. Farrell recommended unsuitable GWG Holdings L-Bonds, which they purchased for $25,000 in December 2020. The complaint was settled for $17,500, with Ms. Farrell personally contributing $8,750 to the settlement.
- February 2023 Complaint: Allegations included breach of fiduciary duty, negligence, breach of contract, fraud, and negligent supervision related to Direct Investment products. This FINRA arbitration case (Case #23-00403) was settled for $32,500, with Ms. Farrell personally contributing $16,250.
- November 2022 Complaint: The complaint alleged that investments in GWG Holdings L-Bonds were unsuitable for multiple clients. This FINRA arbitration case (Case #22-02467) was settled for $111,399.81, with Ms. Farrell personally contributing $55,700.
- October 2022 Complaint: Similar allegations that GWG products recommended to clients were unsuitable. This FINRA arbitration case (Case #22-02311) was settled for $55,000, with Ms. Farrell personally contributing $27,500.
Pending Complaints
Ms. Farrell currently faces three pending customer disputes:
- December 2024 Complaint: Allegations of federal securities law violations, violations of the North Carolina Securities Act, breach of contract, common law fraud, breach of fiduciary duty, and negligence related to GWG L-Bonds. This FINRA arbitration case (Case #24-02594) involves claimed damages of $100,000.
- September 2024 Complaint: Similar allegations of securities laws violations and fraud related to GWG L-Bonds. This FINRA arbitration case (Case #24-01999) involves claimed damages of $275,000 for two clients.
- March 2024 Complaint: A $250,000 claim alleging violations of securities laws and breach of fiduciary duty related to GWG L-Bonds purchased in 2019. This FINRA arbitration case (Case #24-00408) is part of a larger group complaint with a total alleged damage amount of $357,000.
The pattern of similar complaints, all centered around GWG L-Bonds, raises serious questions about the suitability of these recommendations and whether proper risk disclosures were provided to clients.
Tammie Lyn Farrell’s Professional Background
Ms. Farrell has been in the securities industry since 1994 and has worked with several firms during her three-decade career:
- Capital Investment Advisory Services, LLC and Capital Investment Group, Inc. (2012-present)
- Wells Fargo Advisors, LLC (2000-2012)
- First Union Brokerage Services, Inc. (2000)
- BISYS Brokerage Services, Inc. (1998-2000)
- Linsco/Private Ledger Corp. (now LPL Financial) (1995-1998)
- SunTrust Securities, Inc. (1994)
Ms. Farrell has passed the Securities Industry Essentials (SIE) Examination, General Securities Representative Examination (Series 7), Uniform Combined State Law Examination (Series 66), and Uniform Securities Agent State Law Examination (Series 63). She is currently registered in Alabama, Arizona, Florida, Georgia, and North Carolina.
In addition to her broker-dealer and investment advisory roles, Ms. Farrell operates Farrell Wealth & Associates, LLC, which she established in April 2019 as a financial advisory business for securities and insurance products.
Legal Framework: Understanding Broker Obligations
Financial advisors like Ms. Farrell are bound by important regulatory obligations designed to protect investors. Understanding these rules can help investors recognize when their rights may have been violated:
Suitability Obligations (FINRA Rule 2111)
Brokers must have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer, based on the customer’s investment profile. This profile includes factors such as:
- Age
- Financial situation
- Tax status
- Investment objectives
- Investment experience
- Investment time horizon
- Liquidity needs
- Risk tolerance
The suitability rule is particularly important for complex, illiquid investments like GWG L-Bonds. Based on the allegations in the complaints against Ms. Farrell, questions arise about whether these high-risk products were appropriate for her clients’ risk profiles and investment objectives.
Duty of Fair Dealing
Financial advisors have a fundamental obligation to deal fairly with customers and to observe high standards of commercial honor and just and equitable principles of trade. This includes providing balanced disclosure of both risks and potential rewards of investments.
Fiduciary Duty
As a registered investment adviser representative, Ms. Farrell owes fiduciary duties to her advisory clients, requiring her to act in their best interests, provide full and fair disclosure of material facts, and avoid conflicts of interest.
Red Flags in the GWG L-Bond Recommendations
The pattern of complaints against Ms. Farrell highlights several potential issues with her recommendations of GWG L-Bonds:
Concentration Risk
Multiple complaints suggest that clients may have been overconcentrated in GWG products, violating the principle of diversification that is fundamental to prudent investing. Proper diversification helps protect investors from the risk of catastrophic loss when a single investment fails.
Misrepresentation of Risk
The multiple allegations of securities fraud and misrepresentation suggest that clients may not have been fully informed about the high-risk nature of these investments. GWG L-Bonds were complex, illiquid investments with significant risk factors that needed to be clearly disclosed.
Unsuitable Recommendations
The consistent allegation across complaints is that GWG L-Bonds were unsuitable for these investors’ risk profiles and investment objectives. This raises questions about whether Ms. Farrell conducted appropriate due diligence on both the product and her clients’ suitability before making these recommendations.
Personal Contribution to Settlements
It’s noteworthy that Ms. Farrell has personally contributed significant amounts to the settlements of these complaints—totaling over $108,000 across the four settled cases. This level of personal contribution is unusual and may indicate the seriousness of the allegations.
Options for Recovery for Affected Investors
If you invested in GWG L-Bonds or other potentially unsuitable investments recommended by Tammie Lyn Farrell, several avenues for recovery may be available:
FINRA Arbitration
The most common method for resolving disputes with brokers is through FINRA’s arbitration system. This process is generally faster and less formal than court litigation, with cases typically resolved within 12-16 months.
All the current complaints against Ms. Farrell are proceeding through this channel, which is mandatory for disputes between FINRA-registered representatives and their clients based on the arbitration agreements in customer account documents.
Claims Against the Brokerage Firm
Capital Investment Group, Inc. and Capital Investment Advisory Services, LLC may share liability for Ms. Farrell’s recommendations under the legal doctrine of “failure to supervise.” Brokerage firms have a duty to establish and maintain a system to supervise the activities of their registered representatives.
The number and pattern of complaints against Ms. Farrell raise questions about the effectiveness of the supervision provided by her employing firms, potentially creating firm liability for client losses.
Regulatory Complaints
Filing complaints with regulatory authorities such as FINRA, the SEC, or state securities regulators can trigger investigations that might result in restitution orders or other remedies for investors. While this approach doesn’t guarantee recovery, it can create additional pressure on firms to resolve legitimate claims.
How Our Investment Fraud Attorneys Can Help
Our securities litigation team specializes in representing investors who have suffered losses due to broker misconduct. Here’s how we assist clients dealing with potential investment fraud:
Case Evaluation and Strategy Development
We conduct a comprehensive analysis of your investment history, account statements, and communications with your advisor to identify potential violations of securities laws and regulations. This analysis helps us develop a targeted strategy for pursuing recovery.
FINRA Arbitration Representation
Our attorneys have extensive experience navigating the FINRA arbitration process from initial filing through final hearing. We understand how to effectively present claims in this specialized forum and have a track record of successful recoveries.
Damage Assessment
We work with financial experts to accurately calculate the full extent of your investment losses, including opportunity costs and other damages you may be entitled to recover.
Contingency Fee Representation
We handle investment fraud cases on a contingency fee basis, meaning you pay no legal fees unless we recover money for you. This alignment of interests ensures that we are motivated to achieve the best possible outcome for your case.
Protecting Yourself: Lessons from the GWG L-Bond Situation
The complaints against Ms. Farrell offer important lessons for all investors:
Verify Advisor Credentials and Disciplinary History
Always check your financial advisor’s background using FINRA BrokerCheck (brokercheck.finra.org) before establishing a relationship. This free tool provides information about an advisor’s qualifications, registrations, and, crucially, any history of customer complaints or regulatory actions.
Question Complex Investment Products
Be skeptical of complex investment products promising high yields with supposedly low risk. If you don’t fully understand how an investment works and what specific risks it entails, ask detailed questions or consider seeking a second opinion.
Monitor Account Statements and Trade Confirmations
Regularly review your account statements and trade confirmations to ensure that the investments in your portfolio align with your stated investment objectives and risk tolerance.
Diversify Your Investments
Avoid overconcentration in any single investment product or asset class. Proper diversification is one of the most effective strategies for managing investment risk.
Document All Communications
Keep records of all communications with your financial advisor, including emails, letters, marketing materials, and notes from in-person meetings or phone calls. This documentation can be invaluable if a dispute arises.
Protect Your Financial FutureToday
The multiple complaints against Tammie Lyn Farrell highlight the importance of working with financial advisors who truly understand and respect your investment objectives and risk tolerance. If you were a client of Ms. Farrell and invested in GWG L-Bonds or other alternative investments that have resulted in significant losses, it’s important to understand your legal rights and options for recovery.
Our securities fraud attorneys stand ready to help you evaluate your potential claims and pursue appropriate remedies. With decades of combined experience representing investors in similar situations, we have the knowledge and resources to advocate effectively for your financial interests.
Time limits apply to investment fraud claims, so it’s important not to delay in seeking legal advice if you believe you may have been affected by unsuitable investment recommendations or inadequate risk disclosures.
Contact our team today at 800-950-6553 or through our secure online form to schedule a free, confidential consultation with an experienced investment fraud attorney who can help you understand your options and begin the process of recovering your losses.
