Virgil Folden: GWG L Bond Complaint Against Fredericksburg Advisor

An investment in GWG Holdings gave rise to a new investor complaint against Fredericksburg, Virginia representative Virgil Folden (CRD# 1067585), also known as Val Folden. Records provided by the Financial Industry Regulatory Authority reveal that Mr. Folden is a broker with Saxony Securities and an investment advisor with Fredericksburg Financial Planning Services.

The complaint against Mr. Folden was filed in October 2022, according to his FINRA-maintained BrokerCheck report. It alleges that as a representative of Sandlapper Securities, he misrepresented material facts related to an investment in a GWG L bond, and further that he failed to disclose material facts regarding the investment. The pending complaint alleges damages of $300,000.  

As news reports explain, GWG Holdings was an investment company that raised funds from investors to purchase life insurance policies on the secondary market, reportedly seeking to generate profits when those policies paid out. In a 2020 filing with the Securities and Exchange Commission, GWG Holdings revealed that it was experiencing financial difficulties, and further that it was under SEC scrutiny. In 2022 the company filed for bankruptcy for itself and two of its subsidiaries, GWG Life and GWG USA. The SEC later announced charges against Western International Securities and five of the firm’s representatives, alleging they engaged in violations of the SEC’s Regulation Best Interest in connection with the recommendation and sale of GWG L bonds. If your financial advisor misrepresented the risk of L bond investments, or over-concentrated these products in your portfolio, they may be liable to you.

Virgil Folden, also known as Val Folden, has spent 39 years as a broker, according to FINRA records. Currently based in Fredericksburg, Virginia, he has been a broker with Saxony Securities since 2019 and an advisor with Fredericksburg Financial Planning Services since 1989. Over the course of his career, he has been registered with Sandlapper Securities, Capwest Securities, United Securities Alliance, MML Investors Services, and Massachusetts Mutual Life Insurance Company. He is registered in Georgia, New Hampshire, North Carolina, and Virginia. (Information current as of November 10, 2022.)

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