Retiree Recovers Full GWG L Bonds Investment Through FINRA Claim

A woman retiree has been successful in recovering part of her investment in the GWG L Bonds of GWG Holdings. The company is now under Chapter 11 bankruptcy protection, with as many as 17,000 investors facing the prospect of losing a large part of their investment.

It was alleged in the claim that the illiquid, high-risk, speculative GWG L Bonds sold to her were unsuitable for her, as she lived on a fixed income and had no prior experience in investing. It was also alleged that the broker-dealer and its representatives misrepresent the nature of the security and the attendant risks while closing the sale. They also omitted to share material information about the L Bonds as well as GWG Holdings, the company that issued these bonds.’

If you’re an investor in GWG L bonds and are wondering if your investments are safe, there’s good news: you can pursue compensation through an individual FINRA arbitration. Unlike a court case, this resolution is relatively fast and can be completed in a few months. Moreover, investors can retain an attorney to help them with the process. The Financial Industry Regulatory Authority (FINRA) regulates brokerage firms and arbitrates legal disputes.

Haselkorn & Thibaut ( is currently representing GWG investors and helping them recover losses. Investors can reach our GWG Holdings lawyers at 1-888-614-9356 to receive a free GWG Holdings Investor Guide and a free consultation.

GWG L Bond Sales

The L Bonds of GWG were sold through Emerson Equity LLC and a network of prominent regional broker-dealers created by Emerson to reach out to larger numbers. Sharing the lucrative sales commission is a major driver of these sales. Some of the firms involved in selling GWG L Bonds were:

  • Aegis Capital, LLC.
  • Ages Financial Services, LTD.
  • American Trust Investment Services, Inc.
  • Arete Wealth Management, LLC.
  • Ausdal Financial Partners, Inc.
  • Cabot Lodge Securities LLC.
  • Capital Investment Group, Inc.
  • Centaurus Financial, Inc.
  • Center Street Securities.
  • Coastal Equities, Inc.
  • Dempsey Lord Smith, LLC.
  • Great Point Capital LLC.
  • IFP Securities, LLC.
  • International Assets Advisory, LLC.
  • Intervest International Equities Corporation.
  • JRL Capital Corporation.
  • Kingswood Capital Partners, LLC.
  • Landolt Securities, Inc.
  • Lifemark Securities, Corp.
  • M Stevens Securities, LLC.
  • Moloney Securities.
  • National Securities Corporation.
  • Newbridge Securities Corporation.
  • NI Advisors.
  • The FIG Group, LLC.
  • Titan Securities.
  • Western International Securities, Inc.
  • Westpark Capital, Inc.

GWG Holdings Bankruptcy, Default & Other Problems

The Securities and Exchange Commission’s Division of Enforcement (SEC) sent a subpoena to the company in October 2020. This led to GWG suspending its L Bond sales and postponing its 10-K filing until April 2021. The SEC’s Office of the Chief Accountant (OCA) reportedly found accounting problems with GWG’s financial reports. The company subsequently acknowledged that its financial reports were unreliable.

The GWG L Bond default and bankruptcy earlier this year by GWG Holdings have created many legal issues. These problems raise questions about the legitimacy of GWG Holdings’ business practices. As a result, many investors have questioned the company’s legitimacy and filed lawsuits against any who sold the GWG L Bonds to them.

Despite the high-interest rate, GWG L bonds were never intended for the individual investor. Consequently, they were not suitable for the elderly, retired, or conservative investors. These investors are facing the potential complete loss of their investment.

Responsibility of brokerage firms

Brokerage firms and their registered representatives have a responsibility towards the investors they work with. They are required to recommend investments that are in line with the investor’s investment profile and in their best interest.

GWG’s L Bonds, speculative, illiquid, and high-risk, sold as private placement offerings, did not qualify as securities that should have been recommended to investors with a low-risk tolerance or with insignificant investing experience.

They are also required to disclose all material information about the recommended security. That also seems to have been missed out on by brokers in many cases. For example, the significant change in GWG’s business model in 2018 does not appear to have been made known to many investors. The use of investor capital to pay significant distributions to other investors, a Ponzi-like investment scheme, was also not known to many.

These circumstances could make the brokerage firm liable to the investor for the losses they incur as a result of their recommendation.

GWG Holdings investor guidance

The findings from these investigations have been made available by for the guidance of others in the same predicament. Haselkorn & Thibaut specializes in fighting for investors against investment fraud and broker fraud. The firm has successfully recovered money lost by investors on account of broker or broker-dealer misconduct or misrepresentation. Currently, we represent numerous investors of GWG L Bonds who have filed arbitration claims against the firm that sold them these securities.

If you are facing losses in your GWG L Bond investments and would like to determine if you have a case for proceeding against the broker-dealer, you are invited to contact Iorio Altamirano for a free evaluation of your case and guidance on rights and options.

The firm also offers a contingency fee arrangement where you may not need to pay any legal fees until you are able to make a recovery. Meaning that you don’t pay us unless we recover losses. Investors who bought L bonds can reach us online or by calling toll-free at 1-888-614-9356 for a free GWG Investor Guide and confidential consultation.

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