GWG Holdings, Inc. (NASDAQ: GWGH), headquartered in Dallas, was once marketed as an opportunity for individuals seeking high-yield investments backed by life insurance policies. However, the financial landscape for this company deteriorated dramatically, culminating in bankruptcy and minimal recovery for investors.
Haselkorn & Thibaut’s seasoned GWG Holdings L Bonds lawyers represent bond buyers who bought the financial instruments from broker-dealers. There is a limited time to file a claim. Our attorneys may be able to get an extension, but investors are encouraged to call for a review of all their loss recovery options.
Investors who bought L bonds can reach us online or by calling toll-free at 1-888-885-7162 for a free GWG Investor Guide and confidential consultation.
Critical 2025 Updates:
Table of Contents
Recovery Outlook – Bleak:
- Estimated Recovery: 2.7% to 3.45% (approximately $27-$34 per $1,000 invested)
- GWG Wind Down Trust net assets: ~$3 million (as of early 2025)
- Litigation Trust settlements: $91.3 million approved (June 2025)
- After legal fees: ~$59.8 million available for distribution
- No distributions expected until 2026 at the earliest
Asset Values Collapsed:
- Beneficient (BENF) stock: Trading at ~$3.74-$3.83 (December 2024) after 1-for-8 reverse stock split
- FOXO Technologies: Trading at $0.0001 on OTC markets (delisted from NYSE American in August 2025)
- Life insurance portfolio: Sold for only $10 million (October 2023)
Criminal Charges Filed:
- Brad Heppner arrested (November 2025) on federal fraud charges
- Allegations: Misappropriated over $150 million from GWG
- Investors suffered over $1 billion in losses
Alternative Recovery Option:
- FINRA Arbitration showing 90% success rate in cases going to trial
- Several firms ordered to pay damages to L Bond investors
- Investors have 6 years from purchase date to file claims
Latest Developments (2024-2025)
Key Timeline
2024:
- January 15: GWG Holdings officially dissolved
- July: SEC filed complaints against brokers for misrepresenting GWG L Bonds
- August: SEC settled with Emerson Equity and broker Tony Barouti
- December: Beneficient executed 1-for-8 reverse stock split; BENF trading at $3.74-$3.83
2025:
- January: Wind Down Trust confirmed minimal assets remaining
- February: Arete Wealth Management ordered to pay $75,000 in FINRA arbitration
- March: Beneficient offered $50.5 million settlement
- April: Wind Down Trust confirmed ~$3 million in net assets remaining
- May/June: Lifemark Securities lost two FINRA arbitrations ($75K and $58K awards)
- June 13: U.S. Bankruptcy Court approved settlements totaling $91.3 million
- August: FOXO delisted from NYSE American; Arete Wealth ordered to pay $280,000
- September 24: Preliminary approval granted for class action settlement
- November 4: Brad Heppner arrested on federal fraud charges
- January 13, 2026: Final Fairness Hearing scheduled
Current Status of Assets
The GWG Wind Down Trust has liquidated nearly all tangible assets:
1. Life Insurance Portfolio – SOLD
- Sale Price: $10 million (October 2023)
- Recovery to L Bondholders: $0-$7 million (0.5% of $1.3 billion owed)
- Judge’s Assessment: “No material recovery”
2. FOXO Technologies Stock – LIQUIDATED
- Proceeds: $586,942
- Current Status: Trading at $0.0001 on OTC markets (effectively worthless)
3. Beneficient (BENF) Stock – MOSTLY SOLD
- Sales: 1.9+ million shares sold for ~$6.2 million (2023-2024)
- Remaining: 248,026 shares valued at ~$73,912 (April 2025)
- Current Price: ~$3.74-$3.83 (December 2024, post-1:8 reverse split)
- Company Status: Negative equity of -$52.30 million
4. Litigation Trust Settlements – APPROVED
Settlements (June 13, 2025):
- D&O Defendants (including Heppner/Beneficient): $50.5 million
- Mayer Brown LLP: $30 million
- Whitley Penn LLP: $8.5 million
- Sabes Defendants: $2.3 million
- Total: $91.3 million
Net Distribution: ~$59.8 million after legal fees
Recovery Estimate: 2.7-3.45% of original investment ($27-$34 per $1,000 invested)
Recovery Outlook for Investors
Total Expected Recovery
Available for Distribution:
- Asset liquidations: ~$10-17 million
- Litigation settlements (net): ~$59.8 million
- Grand Total: ~$70-77 million for ~$1.67 billion in claims
Final Recovery:
- 2.7% to 3.45% of original investment
- This represents a ~97% loss of principal
Reality for Investors
U.S. Bankruptcy Judge Marin Isgur stated (October 3, 2023):
“[GWG] L Bondholders will lose a very large percentage of their investments.”
Examples:
- $100,000 investment → Expected recovery: $2,700-$3,450
- $50,000 investment → Expected recovery: $1,350-$1,725
- $25,000 investment → Expected recovery: $675-$863
Distribution Timeline:
- No distributions before 2026
- Likely mid-to-late 2026 at earliest
- Dependent on all court approvals
Criminal Charges Against Brad Heppner
Arrest and Indictment (November 4, 2025)
Brad Heppner, founder of Beneficient and former chairman of GWG Holdings, was arrested on multiple federal fraud charges:
Charges:
- Securities Fraud
- Wire Fraud
- Conspiracy to Commit Securities and Wire Fraud
- False Statements to Auditors
- Falsification of Records
Maximum Sentence: Multiple decades in federal prison
The Alleged Scheme
Prosecutors allege Heppner:
- Secretly controlled shell company Highland Consolidated Limited Partnership (HCLP)
- Created fictitious debt of $141 million
- Caused $300 million in transfers between GWG and Beneficient (2019-2021)
- Diverted over $150 million to trusts/entities he controlled
- Falsified documents and obstructed SEC investigation
How Money Was Used
- $50+ million: Ranch and mansion renovations
- $10+ million: Private jets and personal expenses
- $500,000+: Jewelry
- $20 million: Personal taxes
Impact
- GWG bankruptcy: $2+ billion in debt
- Over $1 billion in investor losses
- Victims primarily retirees and conservative investors
FINRA Arbitration: Your Best Recovery Option
Given minimal bankruptcy recovery (2.7-3.45%), FINRA arbitration offers significantly better prospects.
Why FINRA Arbitration Works
Broker Failures:
Many brokers allegedly:
- Failed to conduct proper due diligence on GWG
- Sold high-risk L Bonds to conservative, elderly investors
- Misrepresented bonds as “safe” or “principal-guaranteed”
- Did not disclose illiquidity and risks
- Ignored red flags (SEC investigations, auditor resignations)
- Were motivated by high commissions (up to 8%)
Success Rate: 90%
18 out of 20 cases (90%) resulted in monetary awards for investors at trial.
Recent Awards (2024-2025)
- Arete Wealth Management: $280,000 (August 2025), $75,000 (February 2024)
- Lifemark Securities: $75,000 + costs (May/June 2025), $58,000 + costs (May/June 2025)
- Individual control person found liable (January 2025)
Regulatory Actions
SEC:
- Filed complaints against brokers (July 2024)
- Settled with Emerson Equity and Tony Barouti (August 2024)
- Settled with Western International Securities for Reg BI violations
FINRA:
- Over $675,000 in penalties since 2021
- Settled with at least 15 brokers and firms
Time Limit: 6 Years
Investors typically have 6 years from purchase date to file FINRA arbitration claims.
Example:
- Purchased April 2019 → File by April 2025
- Purchased January 2021 → File by January 2027
Recovery Comparison
Investor with $100,000 L Bond:
| Recovery Source | Amount | Percentage |
|---|---|---|
| Bankruptcy Only | $2,700-$3,450 | 2.7-3.45% |
| FINRA Arbitration (Successful) | $50,000-$100,000+ | 50-100%+ |
| Combined Total | $52,700-$103,450+ | 52-103%+ |
What Are GWG L Bonds?
GWG L Bonds were high-yield, speculative debt securities issued from 2012 to April 2021, raising nearly $2 billion.
Original Business Model (2012-2018)
- GWG purchased life insurance policies on secondary market
- L Bond proceeds funded policy purchases
- Collected death benefits when insureds passed away
Business Shift (2018-2021)
- 2018: GWG shifted focus to The Beneficient Company Group
- Invested heavily in Beneficient instead of life insurance
- Many investors NOT informed of this fundamental change
- Risk profile dramatically increased
Key Characteristics & Risks
High-Risk Features:
- Interest Rates: 4.25% to 9% annually
- Callable: GWG could redeem at any time
- Illiquid: Not traded on any exchange, cannot be sold
- Unrated/Uninsured: No credit rating, no FDIC/SIPC protection
- Auto-Renewable: Automatically renewed at maturity
- High Commissions: Up to 8% to brokers
- Minimum: $25,000 initial investment
- Junior Debt: Subordinated to senior lenders
Red Flags Ignored:
- Delayed SEC filings
- Frequent auditor resignations
- SEC investigations
- Continued net losses
- Related-party transactions
- Brad Heppner’s dual role (Beneficient CEO + GWG Chairman)
Who Should NOT Have Been Sold L Bonds
- Conservative investors
- Retirees depending on income
- Elderly investors
- Anyone needing liquidity
- Low risk tolerance investors
- Those unable to afford total loss
Frequently Asked Questions
What happened to GWG Holdings?
GWG filed for Chapter 11 bankruptcy on April 20, 2022, and was dissolved on January 15, 2024. L Bond investors now hold “Series A1 WDT Interests” in the GWG Wind Down Trust, with an estimated recovery of only 2.7-3.45%.
When will I receive my distribution?
No distributions expected until 2026 at earliest. Timeline depends on:
- Final court approval (hearing January 13, 2026)
- Settlement payments received
- Claims resolution
Can I still file a claim?
YES – through FINRA arbitration if you’re within the 6-year deadline from purchase date. This offers much higher recovery potential than bankruptcy alone.
How do I know if I’m eligible for FINRA arbitration?
You may be eligible if:
- Purchased L Bonds through a broker/financial advisor
- Within 6 years of purchase date
- L Bonds were unsuitable for your profile
- Broker failed to disclose risks
- Told bonds were “safe” or “guaranteed”
What about my L Bonds?
All L Bonds were canceled on August 1, 2023, and replaced with “Series A1 WDT Interests” in the Wind Down Trust. These are:
- Not securities
- Generally non-transferable
- No trading market
- Cannot be sold
Should I pursue FINRA arbitration or join the class action?
Most investors should consider individual FINRA arbitration because:
- Potentially higher recovery (50-100%+ vs. minimal class action recovery)
- 90% success rate at trial
- Case tailored to your circumstances
- Faster resolution
Important: Joining class action typically prevents individual arbitration. Consult attorney first.
What brokerage firms sold L Bonds?
Common firms include:
- Emerson Equity LLC (managing broker-dealer)
- Aegis Capital
- Centaurus Financial
- Western International Securities
- Arete Wealth Management
- Lifemark Securities Corp.
- NI Advisors
- Center Street Securities
- Many others
Legal Options for Investors
Option 1: FINRA Arbitration (Recommended)
Best option for maximum recovery.
Eligibility:
- Purchased through broker/advisor
- Within 6 years of purchase
- Can demonstrate broker misconduct
Potential Recovery: 50-100%+ of losses
Success Rate: 90% at trial
Cost: Contingency fee (33-40%) – no recovery = no attorney fee
Timeline: 12-18 months
Option 2: Bankruptcy Distribution
Automatic for verified claimholders.
- Recovery: 2.7-3.45%
- Timeline: 2026 at earliest
- Action: Ensure contact info current with Computershare or broker
Option 3: Securities Class Action
Currently pending final approval.
- Preliminary approval: September 24, 2025
- Final hearing: January 13, 2026
- Likely low per-investor recovery
- Warning: Participating bars individual FINRA arbitration
Combined Approach (Recommended)
Maximum recovery strategy:
- Pursue FINRA arbitration (highest recovery)
- Participate in bankruptcy distribution (automatic)
- Monitor criminal proceedings (potential restitution)
Example Combined Recovery ($100,000 investment):
- FINRA Award: $75,000
- Bankruptcy: $2,700-$3,450
- Total: $77,700-$78,450 (77-78%)
How to Get Started
Step 1: Free Consultation
Contact experienced securities attorneys:
- Haselkorn & Thibaut: +1 888-885-7162
- Free, confidential case evaluation
- No obligation
Step 2: Gather Documentation
Helpful documents:
- L Bond purchase confirmations
- Account statements
- Communications with advisor
- Marketing materials
Step 3: Take Action
Time is critical. The 6-year deadline means some investors are running out of time to file FINRA arbitration claims.
Don’t wait if:
- You purchased L Bonds between 2019-2021
- You believe your advisor didn’t disclose risks
- You were told bonds were “safe” or “guaranteed”
- L Bonds were unsuitable for your profile
Summary: Your Action Plan
The Reality
- GWG dissolved (January 2024)
- Expected bankruptcy recovery: 2.7-3.45% (~3 cents on the dollar)
- $1+ billion in investor losses
- Brad Heppner arrested on fraud charges
- No distributions until 2026 at earliest
What You Should Do
✓ Immediate:
- Contact securities attorney for free consultation: +1 888-885-7162
- Verify 6-year FINRA deadline hasn’t passed
- Gather documentation
✓ Short-Term:
- Update contact info with Computershare or broker
- Monitor gwgholdingstrust.com for updates
- Watch Final Fairness Hearing results (January 13, 2026)
✓ Ongoing:
- Pursue FINRA arbitration if viable (highest recovery potential)
- Await bankruptcy distributions (automatic)
- Monitor criminal proceedings
✓ Tax Planning:
- Consult tax advisor about loss recognition
- Await Grantor Letters from Wind Down Trust
Key Contacts
Legal Representation (FINRA Arbitration):
- Haselkorn & Thibaut: +1 888-885-7162
- Website: investmentfraudlawyers.com
- Free confidential consultation
- Experienced GWG L Bonds securities attorneys
GWG Wind Down Trust:
- Website: gwgholdingstrust.com
- Transfer Agent: Computershare Trust Company, N.A.
Regulatory Resources:
- FINRA: finra.org
- SEC Investor Information: investor.gov
Important Disclaimers
Attorney Advertising: This article contains information about legal services. No attorney-client relationship is created by reading this article.
No Guarantees: Past results do not guarantee future outcomes. While FINRA arbitration has shown a 90% success rate in GWG L Bond cases, individual results vary.
Time-Sensitive: FINRA arbitration claims are subject to a 6-year time limit. Contact an attorney immediately to preserve your rights.
Seek Professional Advice: This article is for informational purposes only and does not constitute legal, tax, or financial advice.
Conclusion
The GWG Holdings bankruptcy represents over $1 billion in losses to approximately 26,000 investors, many of whom were retirees who should never have been sold these high-risk securities.
While bankruptcy proceedings offer minimal recovery (2.7-3.45%), FINRA arbitration provides a viable path to meaningful recovery with a 90% success rate.
If you invested in GWG L Bonds:
- You are NOT alone
- Legal options MAY be available
- Time limits apply (6 years from purchase)
- Free consultations available
Contact experienced securities attorneys today:
Haselkorn & Thibaut
- Phone: +1 888-885-7162
- Website: investmentfraudlawyers.com
- Consultation: Free and confidential
Investors who bought L bonds from Emerson Equity LLC, Aegis Capital, NI Advisors, Centaurus Financial, Center Street Securities, Arete Wealth Management, Lifemark Securities Corp., or any other brokerage firms should reach out immediately.
