Are you worried about your GWG L-Bonds investment through Portsmouth Financial Services? Many investors faced losses after GWG Holdings’ bankruptcy in April 2022, leaving many people unsure about what to do next.
GWG’s L-Bonds were sold as a way to finance life insurance policy purchases. But they came with high risks that weren’t always clear to investors. This blog post will explain what happened with Portsmouth Financial Services GWG L-Bonds.
We’ll also show you how to seek help if you’ve lost money. Keep reading to learn about your options for recovery.
Key Takeaways
Table of Contents
- GWG Holdings went bankrupt in April 2022, causing big losses for L-Bond investors.
- Portsmouth Financial Services sold GWG L-Bonds but may not have fully explained the risks.
- Investors can seek help through FINRA arbitration to try to recover their losses.
- Haselkorn & Thibaut offers legal help on a no-win, no-fee basis for L-Bond investors.
- L-Bonds were very risky investments used to buy life insurance policies from policyholders.
GWG Holdings and L-Bonds
GWG Holdings’ bankruptcy has left many investors in a tough spot. Haselkorn & Thibaut lawyer’s can help those who lost money in L-Bonds.
GWG Holdings’ bankruptcy and investor losses
GWG Holdings faced major financial troubles in 2022. On February 14, the company missed key SEC payment deadlines, causing a default. This led to a sharp drop in GWG’s share price from $9 in January 2021 to under $3.75 within months.
By April 2022, GWG Holdings filed for bankruptcy protection. This move put investors at risk of losing most or all of their money.
The company’s insolvency created a dire situation for many people who trusted GWG with their funds. Investors now face the harsh reality of principal loss due to GWG’s financial instability.
The SEC violations and payment defaults added to the company’s woes. Let’s explore how L-Bonds played a role in this financial crisis.
Haselkorn & Thibaut’s (InvestmentFraudLawyers.com) expertise in representing investors
Haselkorn & Thibaut stands out as a top choice for GWG L-Bonds investors seeking help. The firm has deep knowledge in handling FINRA arbitration claims against broker-dealers.
Haselkorn & Thiabut takes on cases with no upfront costs to clients. They only charge fees if they win money back for investors.
GWG Holdings’ bankruptcy left many investors with big losses. Haselkorn & Thibaut aims to recover these losses through FINRA arbitration. The firm is now working on claims against several broker-dealers, including Moloney Securities.
Their goal is to protect investor rights and fight financial fraud. Let’s explore how L-Bonds worked and why they caused problems for investors.
L-Bonds and GWG Holdings
GWG Holdings sold L-Bonds to raise money for their life insurance business. These bonds carried high risks and led to big losses when GWG went bankrupt.
Purpose of L-Bonds and their risks
L-Bonds were created to buy life insurance policies from policyholders. GWG Holdings used investor money to purchase these policies and pay premiums until the insured person died. They offered higher returns to attract investors.
But L-Bonds came with big risks.
These bonds were very risky and hard to sell. There was no easy way for investors to get their money back if needed. L-Bonds were called speculative, which means they had a high chance of losing value.
Investors faced major financial risks by putting money into these bonds.
Failure of GWG Holdings and SEC investigation
GWG Holdings faced big troubles in 2022. The SEC started looking into the company for missing report deadlines. This put GWG in hot water with regulators. NASDAQ also warned GWG it might be kicked off the stock exchange.
Things got worse in January when GWG said it wouldn’t pay dividends to investors. The company then hired experts to help fix its money problems.
These issues scared many people who had bought GWG’s L-Bonds. L-Bonds were risky investments that GWG sold to raise cash. As GWG’s problems grew, investors worried they might lose their money.
The SEC probe and NASDAQ warning showed GWG was in serious trouble. This made many wonder if the company could survive its financial crisis.
Portsmouth Financial Services and L-Bonds
Portsmouth Financial Services sold GWG L-Bonds to investors. Some claim the firm didn’t fully explain the risks or do proper checks before selling these bonds.
Allegations of inadequate disclosure and misrepresentation
Portsmouth Financial Services faced claims of poor risk disclosure to investors. They allegedly pitched L-Bonds as safe and secure investments. This misled many people, especially older folks with little investing know-how.
Investors ran into big problems when they tried to get their money back. They had to pay a 6% fee to transfer their investment, which caused major cash flow issues.
Experts say Portsmouth should have given clearer info about L-Bonds’ risks. Many investors didn’t grasp how risky these products were. The firm’s actions may have broken rules about honest sales practices.
Financial firms must fully explain investment dangers to clients. Portsmouth’s failure to do so left many people in a tough spot.
Broker-dealer due diligence requirements
Broker-dealers must check if investments fit each client’s needs. This duty includes looking at a person’s age, income, and wealth. It also means thinking about how much risk they can handle and what they want from their money.
Firms like Portsmouth Financial Services have to do this research before selling products.
FINRA rules require brokers to know their customers well and learn about their past investing choices. If brokers don’t perform proper checks, they might suggest bad investments.
Clients can then ask FINRA to help them get their money back through a special process.
Investor Recourse and FINRA Arbitration
Investors can seek to recover losses through FINRA arbitration. Haselkorn & Thibaut offer help on a contingency fee basis.
Options for investors to recover losses through arbitration
Investors have options to recover losses from unsuitable investments. FINRA offers a path to reclaim funds through arbitration.
- File a claim with FINRA: Investors can start the process by filing a formal complaint against their broker or firm.
- Seek legal help: Firms like Haselkorn & Thibautcan guide investors through the arbitration process.
- Prove misconduct: Investors must show their losses resulted from bad advice or hidden risks.
- Attend hearings: FINRA arbitration involves presenting evidence before a panel of experts.
- Recover funds: If successful, investors may get back some or all of their lost money.
- Pay no upfront fees: Some law firms, like Haselkorn & Thibaut, only charges if they win the case.
- Act quickly: There are time limits for filing claims, so investors should not delay.
- Gather documents: Collect all investment records, emails, and statements to support the claim.
- Prepare for questioning: Investors may need to answer questions about their financial history.
- Consider settlement: Some cases may be resolved without a full hearing through negotiation.
Haselkorn and Thibaut’s representation and contingency fee basis
After exploring options to recover losses, investors may seek legal help. Haselkorn & Thibaut offers strong support for those harmed by financial wrongdoing. The firm takes cases on a contingency fee basis.
This means clients pay nothing upfront. Fees are only charged if money is recovered.
They aim to get back money lost due to broker misconduct or fraud. The firm’s no-win, no-fee approach makes legal action possible for many investors.
Conclusion
GWG’s L-Bonds have left many investors in a tough spot. Portsmouth Financial Services may not have told the whole story about these risky bonds. Investors who lost money can seek help through FINRA arbitration.
Haselkorn & Thibaut offers a way to fight back and try to recover losses. Don’t wait if you bought L-Bonds from Portsmouth. Act now to protect your hard-earned cash and get expert help.
FAQs
1. What are GWG L-Bonds?
GWG L-Bonds are high-risk investments that Portsmouth Financial Services may have sold to clients. These bonds promised high returns but carried significant risks.
2. How can I know if I bought L-Bonds from Portsmouth Financial Services?
Check your investment records or account statements. Look for any mentions of GWG L-Bonds or similar products. If unsure, contact Portsmouth Financial Services directly for clarification.
3. What should I do if I own GWG L-Bonds?
If you own these bonds, speak with a financial advisor right away. They can help you understand your options and potential next steps to protect your investment.
4. Are there legal actions against Portsmouth Financial Services for selling L-Bonds?
Some investors have taken legal action against firms that sold GWG L-Bonds. If you believe you were misled, consider talking to a lawyer who specializes in investment fraud cases.
