Barry Cabalar: Did PHX Advisor Recommend GWG L Bonds?

Records filed with a US bankruptcy court show that at least one current or former client of Phoenix Financial Services representative Barry Cabalar (CRD# 4749342) is listed as a creditor for investments in GWG Holdings L bonds. The records, filed with a US bankruptcy court, describe an investment of at least $386,000. Records maintained by the Financial Industry Regulatory Authority show that Mr. Cabalar is currently based in Hauppage, New York.

Mr. Cabalar’s BrokerCheck report discloses several investor complaints. The most recent, filed in 2019, alleged that as a representative of PHX Financial, he engaged in excessive trading. The complaint reached a settlement of $185,000. In a statement included with the complaint’s disclosure, Mr. Cabalar pushed back against the allegations. “These clients were accredited and experienced investors who provided appropriate risk tolerance and objectives that were documented and updated at different times throughout the life of their accounts,” he wrote in part, continuing: “Documented records additionally reflect the clients were completely aware and informed of their account activity and fully authorized all account transactions. I deny any alleged wrongdoing and would like to state that the decision to settle this matter is strictly based on avoiding a costly legal process.”

An earlier investor complaint, filed in 2016, alleged that as a representative of Legend Securities, he recommended unsuitable investments, breached his fiduciary duty, committed fraud, breached contract, churned investments, and violated the Arkansas Securities Act. In 2022 the complaint reached a settlement of $5,000.

A third investor complaint, filed in 2015, alleged that as a representative of John Thomas Financial, he churned investments, made unsuitable recommendations, breached his fiduciary duty, and engaged in negligent misrepresentation. The complaint reached a settlement of $14,500.

Investors should be aware that in 2022, securities regulators at the SEC were reportedly scrutinizing the sales of L bonds issued by GWG Holdings, an investment firm based in Dallas that filed for bankruptcy that same year. The SEC filed charges against the broker-dealer firm Western International Securities, as well as several of its representatives, in connection with allegations that their recommendation and sales of GWG L bonds constituted violations of securities industry rules. If your financial advisor misrepresented and recommended unsuitable investments in GWG L bonds or preferred stock, they may be liable for damages.

According to the Financial Industry Regulatory Authority, Barry Cabalar holds 15 years of securities industry experience. Based in Hauppage, New York, he has been a broker with PHX Financial since 2015. His past registrations include Legend Securities, Aegis Capital Corporation, John Thomas Financial, and Newbridge Securities Corporation. He currently holds 20 state licenses. (Information current as of May 30, 2023.)

Carlson Law has represented at least nine investors in claims against their financial advisors for investments in GWG Holdings Inc. If you or a loved one have suffered investment losses, please call us at 888-976-6111 or complete our contact form for a free and confidential consultation.