The Securities and Exchange Commission (SEC) today announced settled charges against Texas-based broker-dealer Lion Street Financial, LLC for violating Regulation Best Interest.
Without admitting or denying the SEC’s findings, Lion Street has agreed to a cease-and-desist order, a censure, disgorgement of $14,899.55, prejudgment interest of $3,683.32, and a civil money penalty of $135,000.
According to the SEC’s Order, between June 30, 2020 and April 2021, Lion Street failed to comply with Regulation Best Interest’s Care Obligation by recommending high-risk debt securities known as “L Bonds,” which were issued by GWG Holdings, Inc, to retail customers without exercising reasonable diligence, care, and skill to understand the potential risks, rewards, and costs associated with the recommendations.
As…
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