Joseph Farrell Beam, of Flat Rock, North Carolina, a stockbroker registered with Capital Investment Group Inc., is the subject of a customer initiated investment related Financial Industry Regulatory Authority (FINRA) securities arbitration claim filed on July 18, 2024. The customer requested $175,000.00 in damages based on allegations of failure to conduct due diligence in connection with the sale of GWG Holdings L Bonds. GWG Holdings filed Chapter 11 bankruptcy on April 20, 2022. FINRA Arbitration No. 24-01565.
FINRA Public Disclosure shows that Beam has been referenced in seven other customer initiated investment related disputes concerning his conduct while associated with Capital Investment Group. On May 17, 2024, a customer filed an investment related FINRA securities arbitration claim involving Beam’s conduct, seeking $357,000.00 in damages based on allegations of violations of federal securities laws, violation of North Carolina Securities Act, breach of contract, common law fraud, breach of fiduciary duty, and negligence in connection with the sale of GWG L Bonds. FINRA Arbitration No. 24-00408.
On May 15, 2024, a customer filed an investment related FINRA securities arbitration claim involving Beam’s conduct, requesting $195,000.00 in damages based on allegations of unsuitable recommendations, failure to act in the best interest of the customers, misrepresentations, omissions, breach of fiduciary duty, breach of contract, failure to supervise, and violations of federal and state securities laws in connection with the sale of GWG L Bonds. FINRA Arbitration No. 24-01055.
On April 18, 2024, another customer filed an investment related FINRA securities arbitration claim involving Beam’s conduct, requesting $400,000.00 in damages based on allegations of failure to conduct reasonable due diligence on the issuer of L Bonds. FINRA Arbitration No. 24-00838.
FINRA Public Disclosure also shows that on November 16, 2023, a customer filed an investment related FINRA securities arbitration claim requesting $100,000.00 in damages based on allegations of unsuitable investment recommendations in GWG Holdings Inc. during the time that Beam was associated with Capital Investment Group. The claim also alleged breach of contract and breach of fiduciary duty. FINRA Arbitration No. 23-03309.
On February 9, 2023, a different customer filed an investment related FINRA securities arbitration claim requesting $125,000.00 in damages based on allegations of breach of contract and breach of fiduciary duty in connection with the sale of GWG products. The case was settled on August 29, 2024, with Capital Investment Group paying $40,000.00 to the customer. FINRA Arbitration No. 23-00335.
Beam is also referenced in a customer initiated investment related FINRA securities arbitration claim filed on November 29, 2022, in which the customer requested $160,000.00 in damages based on allegations of misrepresentation and unsuitable investment recommendations in GWG Holdings Inc. This case was settled on January 12, 2024, for $60,000.00. FINRA Arbitration No. 22-02718.
Additionally, on July 19, 2022, another customer filed an investment related FINRA securities arbitration claim, requesting $80,000.00 in damages based on allegations of unsuitable recommendations during the time that Beam was associated with Capital Investment Group. The dispute was settled for $32,500.00 in damages on September 25, 2023. FINRA Arbitration No. 22-01550.
Beam was associated with Capital Investment Group Inc. from August 20, 2013, to June 5, 2023.
