GWG L bond investors are facing significant losses as GWG Holdings navigates both bankruptcy and class action lawsuits. Despite the bonds offering high interest dividends, the GWG L Bonds were poorly secured, unlisted and unsellable once purchased, while also being aggressively auto-renewed. This combination of high risk and illiquidity should have meant that they were offered only to a specific kind of knowledgeable and secure investor.
Instead, tempted by the 8% commissions offered by GWG Holding’s brokerage seller network, broker-dealers pushed the L bonds on retail investors including retirees, elderly investors, and other conservatively-invested consumers. And despite SEC investigations, a messy failed merger and other warning signs that GWG Holdings itself was neither stable nor acting in good faith, brokers sold even more, up to $350 million, between August 2020 and April 2021.
In February 2022, GWG defaulted on $13.6 million dollars in payments plus interest that it owes to investors. In April, the company filed for bankruptcy. L Bond redemption payments are suspended and investors have no way of getting rid of the toxic asset. Some may lose as much as 80% of their initial investment.
Did You Lose Money on a GWG L-Bond?
If your broker recommended a GWG L-Bond and you have lost money, you may have a case against your broker. Financial Industry Regulatory Authority (FINRA) rules require brokers to make recommendations that are suitable for the client and have reasonable reasons for their strategy, trade or investment vehicle recommendations. If your broker did not act on behalf of your best interests by recommending this product, you may have a claim of securities mismanagement or broker-dealer misconduct.
Emerson Equity is the lead broker-dealer for GWG L Bonds. Contact us immediately If you purchased this product from Emerson Equity or one of their approximately 145 network dealer members such as:
- Emerson Equity
- Advanced Financial Solutions
- Cabot Lodge Securities
- Capital Investment Group
- Centaurus Financial
- Coastal Equities
- Ni Advisors
- Landolt Securities
- Lion Street Financial (Stiba Wealth Management)
- National Securities
- SW Financial
We Can Help
The Law Offices of Jared A. Rose can help you recover losses suffered from the purchase of the failed GWG L-Bond scheme. Contact Us Today to find out if you have a case. We will advise you on the best way to recoup your losses, whether that be action against your broker/brokerage firm, or FINRA mediation.