David La Grange: Moloney Advisor’s GWG Sales Lead to SEC Fine

Winterset, Iowa financial advisor David La Grange (CRD# 4200976) allegedly sold unsuitable investments in GWG L bonds, according to a recent order by the Securities and Exchange Commission. Financial Industry Regulatory Authority records show that he is registered as a broker and an investment advisor with Moloney Securities.

Mr. La Grange’s BrokerCheck report discloses the SEC’s administrative action against him. Filed in September 2024, it alleged that he “failed to exercise reasonable diligence, care, and skill to understand the potential risks, rewards, and costs associated with the recommendation of L Bonds to certain retail customers.” It goes on to state that he recommended these products to customers without a reasonable basis to believe they were in the customers’ best interests.

As the order notes, GWG’s own disclosure materials described the investments as highly risky, speculative, and “only suitable for investors with substantial financial resources and no need for liquidity in the investment.” It also notes that the according to these disclosures, GWG planned to “use a portion of the L Bond proceeds to repay existing L Bond holders.” Mr. La Grange’s member firm, Moloney Securities, allegedly failed to establish policies designed to mitigate conflicts of risk associated with its recommendations of these investments. As a result of these findings, the SEC ordered Mr. La Grange to pay a fine of $12,500 and disgorgement of $20,442.

According to the Financial Industry Regulatory Authority, David La Grange holds 24 years of securities industry experience. Based in Winterset, Iowa, he has been registered as a broker and an investment advisor with Moloney Securities since 2012 and 2016, respectively. His past registrations include Moloney Investment Advisory and Eagle One Investments. His credentials include the passage of three securities industry qualifying exams: the General Securities Representative Examination, or Series 7; the Securities Industry Essentials Examination, or SIE; and the Uniform Securities Agent State Law Examination, or Series 63. He holds 25 state licenses. (Information current as of October 6, 2024.)

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