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American Equity’s Donald Rhodes Lands $120K GWG Complaint
An investor complaint alleges that New Albany, Indiana financial advisor Donald Rhodes (CRD# 2813490) recommended an unsuitable investment in GWG Holdings. Records maintained by the Financial Industry Regulatory Authority indicate that he is a broker with American Equity Investment Corporation.
Mr. Rhodes’ BrokerCheck report discloses one investor complaint. Filed in November 2022, it alleges that in April 2021 he sold an unsuitable GWG Holdings bond and failed to “sufficiently convey the risks” involved with the product. The pending complaint, which notes that GWG “filed for Chapter 11 bankruptcy reorganization” in April 2022, alleges damages of $120,000.
A statement included with the pending complaint’s disclosure clarifies that the complaint involves two GWG L bond investments. “The first investment of $150,000 was made in January 2017 upon referral by representative Donald Rhodes,” it states further. The claimant, according to the comment, “was and is a close friend and client of Mr. Rhodes, but at the time of the sale Mr. Rhodes did not hold the appropriate license to sell the GWG bonds.” As such, per the comment, asked American Equity Investment Corporation’s compliance officer “to act as the selling agent for the bond,” which was reassigned to him after he passed the relevant examination. The statement concludes by noting that a second $120,000 L bond purchase “was represented by Mr. Rhodes.”
According to the Financial Industry Regulatory Authority, Donald Rhodes holds 24 years of securities industry experience. Based in New Albany, Indiana, he has been registered as a broker with American Equity Investment Corporation from 2013 until the present and from 1996 until 2011. His credentials include the passage of five securities industry qualifying exams: the Investment Company Products/Variable Contracts Representative Examination, or Series 6; the Direct Participation Programs Representative Examination, or Series 22; the Securities Industry Essentials Examination, or SIE; the General Securities Representative Examination, or Series 7TO; and the Uniform Securities Agent State Law Examination, or Series 63. He is licensed in Indiana. (Information current as of December 26, 2022.)
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