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GWG L Bond Losses? How to Recover Damages

GWG L Bond Losses? How to Recover Damages 150 150 Rex Securities Law

GWG Holdings L Bonds

Recovery Options For Investors

 

Did you invest in  GWG L Bonds ?  

If you invested in  GWG L Bonds products you should know that the current outlook for GWG is grim.

  • The company has been under investigation since October 2020, however the existence of this investigation was not shared with investors until nearly a year after the investigation began.
  • The auditors for GWG recently resigned (December 2021) and GWG has failed to make recent regulatory filings with the Securities and Exchange Commission.
  • On April 20.2022, GWG Holdings, Inc. filed for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas.

As a result of the bankruptcy filing all payment obligations of GWG are stayed, which means there will be no payments, of principal or interest, to investors until GWG Holdings is restructured and has the approval of the court, a process that could take several years or more. GWG may have sold has much as $2 billion worth of high yield bonds over recent years.

As a result investors may be facing the loss of a significant portion of their  investment.

GWG L Bonds are High Risk, Illiquid Investments Not Suitable For Many Retirees

According the the Prospectus, the GWG L Bonds are speculative and involve a high degree of risk, including the risk of losing your entire investment. While this onerous warning is in included in the offering documents, many investors we have spoken with tell us that the financial advisor who recommended the investment failed to mention this warning when selling the bonds to them. To the contrary most investors we have spoken with tell us that the bond was touted as being low to moderate risk and there was no mention of the fact that an investor could lose everything.

GWG L Bonds were not likely to be suitable for retirees seeking low risk and for those with the need for liquidity.

How to Recover Damages for Your Losses on GWG

If your financial advisor misrepresented or failed to advise you of the risks associated with GWG L Bonds,  you can pursue damages from the financial firm that recommended that you invest in  GWG L Bonds.

These cases are pursued in FINRA arbitration and take about 12-14 months. Your case will be filed and prosecuted individually and will not be part of a class action.

We are willing to represent you on a contingent fee basis, meaning we are only entitled to an attorney fee if we are successful.

Call us now or fill out the contact form at the bottom of the page and we will call you for a no charge evaluation of your case.

GWG L Bonds Sold by 150 Brokerage Firms According to GWG

A partial list of the financial firms that sold GWG L Bonds:

  • Aegis Capital
  • Arete Wealth Management
  • Cabot Lodge Securities
  • Capital Investment Group
  • Centaurus Financial
  • Center Street Securities
  • Coastal Equities
  • D.H. Hill Securities
  • Emerson Equity
  • G.A. Repple
  • International Assets Advisory
  • Landolt Securities
  • Lion Street Financial
  • Madison Avenue Securities
  • M Stevens Securities
  • Moloney Securities
  • National Securities Corporation
  • Newbridge Securities
  • NL Advisors
  • SW Financial
  • Western International Securities
  • Westpark Capital

While 150 or so firms seems like quite a few, consider the fact that, according to FINRA’s Industry Snapshot,  there were 3,394 registered firms in 2021. This means only about 4.4% of the FINRA registered firms chose to sell this high risk product.

Brokers and financial advisors have a duty to make suitable recommendations to investors. Brokerage firms are required to supervise their brokers to assure that only suitable recommendations are made to customers. Financial advisors also have a duty to perform due diligence to investigate an investment before recommending it to a customer.

A breach of any of these duties forms the basis of liability for investor claims

Nationwide Representation—Contingent Fee

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

 

 

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