In recent news, it was reported that GWG Holdings, a Dallas, Texas-based asset manager that provides insurance services, as well as acquires life insurance policies in the secondary market, filed for bankruptcy on April 20, 2022.
It is estimated that GWG Holdings has more than $2 billion in liabilities, including $1.3 billion of GWG L bonds, and has missed millions of dollars in combined interest and principal payments to investors owning the GWG L bond series.
IMPORTANT: As of February 2022, GWG Holdings has failed to pay $13.6 million in payments to GWG L bondholders. These were high yield, high risk, illiquid investments that as stockbrokers should have been wary and not recommended to investors with conversative or moderate risk tolerances.
The Law Offices of Robert Wayne Pearce, P.A. is currently investigating claims against stockbrokers related to recommendations to purchase GWG Holdings L bonds (“GWG L bonds”) and is offering free consultations to those who have suffered GWG L bond losses.
If you have suffered GWG L bond investment losses, our experienced securities litigation attorneys are prepared to discuss the matter and provide their legal opinion as to whether you can recover damages against the broker-dealer who recommended and sold you GWG L bonds. Please contact our law firm at 561-338-0037 or online for a free consultation.
GWG Holdings issued the GWG L bonds to raise capital to purchase an individual life insurance policyholder seeking liquidity or cash by selling his/her life insurance policy to GWG Holdings for more than the surrender value but substantially less than the policy’s face value. GWG Holdings would then make the premium payments and hope to receive a payout worth greater than what it paid for the policy after the original policy matures or the policyholder passes away.
The subject GWG L bonds were created to finance these life insurance policy purchases by GWG Holdings.
The problem for investors was the GWG L bond investments depended on insurance policy premiums and benefits being paid out according to assumptions and statistical models, thus making them speculative investments for investors seeking income and protection of their capital. Further, GWG L bonds had no secondary market, which prevented investors from liquidating should they need the cash immediately.
In other words, money used to purchase GWG L bonds was essentially trapped from the moment of purchase. Moreover, the only collateral supposedly backing GWG Holdings are interests in GWG subsidiary companies that purportedly owned real assets, including the insurance policies.
Don’t Be Discouraged by GWG Holdings’ Bankruptcy
As early as April 2022, news sources reported that GWG Holdings was filing for Chapter 11 bankruptcy protection. However, this news should not stop investors from seeking the opinion of a skilled and experienced securities attorney and getting just compensation.
Broker-dealers and their agents who misrepresented and/or made unsuitable recommendations as to the GWG L bonds may still be held liable for losses in investor accounts. In other words, an account holder can still file a FINRA arbitration against the broker-dealer to recover losses in GWG L bonds for misrepresentations, unsuitable recommendations, failure to conduct adequate due diligence, negligence, etc.
You should not let your broker-dealer or broker/financial advisor convince you otherwise.
Robert Wayne Pearce, P.A. Recovers Investment Losses
The attorneys at Law Offices of Robert Wayne Pearce, P.A. are experienced in litigating high-yield and speculative fixed-income instrument securities loss cases.
For over 40 years we have represented investors in arbitration and securities litigation matters, including FINRA arbitration proceedings in nearly every state.
GWB L Bonds Were Sold for High Commissions!
According to GWG Holdings, the GWG L bonds were sold by Emerson Equity, the managing broker-dealer, which partnered with other brokerage firms that also sold the L bonds to their retail customers. The commissions on such sales by the brokerage firms were as high as 8%.
The Law Offices of Robert Wayne Pearce, P.A. suspects that many other broker-dealers were involved in the recommendation and sale of the GWG L bonds to their customers.
Some of the firms alleged to have sold L bonds to their customers include:
- Aegis Capital
- Ages Financial Services
- Allied Beacon Partners
- American Trust Investment Services
- Arete Wealth Management
- Ausdal Financial Planers
- Cabot Lodge Securities
- Capital Investment Group
- Centaurus Financial, Inc.
- Center Street Securities
- Coastal Equities
- Dempsey Lord Smith
- Emerson Equity
- Great Point Capital
- IFP Securities
- International Assets Advisory
- Intervest International Equities Corporation
- Kingswood Capital Partners
- Landolt Securities
- Lifemark Securities
- Lion Street Financial
- Malone Securities
- Moloney Securities
- M Stevens Securities
- National Securities
- National Securities Corporation
- Newbridge Securities
- NI Advisors
- (Stiba Wealth Management)
- Strategic Financial Partners
- SW Financial
- The Fig Group
- Titan Securities
- TRL Capital Corporation
- Western international securities, Inc.
- Westmark Capital
If the name of your broker-dealer does not appear on the list above, do not be alarmed. Rather, call us at 561-338–0037 or contact us online for free consultation to discuss whether you may have a claim to recover damages.
Recover Your GWG L Bond Investment Losses in a FINRA Arbitration
The Law Offices of Robert Wayne Pearce, P.A. is prepared to help investors who have sustained damages or monetary losses not only in GWG L bonds but other investments in your account in FINRA arbitration.
If you were one of those investors who have suffered losses, you should seek the immediate advice of an experienced investment fraud attorney with more than 40 years of experience representing investors in investment fraud and broker-dealer negligence cases. It is imperative that you seek our consultation as soon as possible, as there are applicable eligibility rule and/or statutes of limitation that may forever bar your claim against the broker-dealer who sold you the GWG L bonds if you do not file your claim in a timely manner.
We Don’t Get Paid Unless You Get Paid!
The Law Offices of Robert Wayne Pearce, P.A. accepts cases on a contingency fee basis. This means if we do not recover money for you, you will not incur any fees owed to our firm. In other words, our attorney’s fees are collected only if we successfully settle your case or obtain a monetary award at the final arbitration hearing.
We will also bear the cost of your case through the litigation process, and we will be reimbursed for such cost only if we are successful in recovering your monetary losses.
The investment fraud attorneys at the Law Offices of Robert Wayne Pearce, P.A. are ready and willing to devote their experience to your case for the best possible outcome achievable. Please call us at 561-338-0037 or contact us online for your free consultation.