Shepherd Smith Edwards and Kantas Is Representing This Claimant and Many Others

A 69-year-old retiree has filed a FINRA arbitration claim against Western International Securities after suffering total losses on her high-risk GWG L Bond investments. Represented by the law firm Shepherd Smith Edwards and Kantas, she accuses the brokerage firm of making unsuitable recommendations, failing to disclose risks, and prioritizing high commissions over her financial security.

A 69-year-old retiree has filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against Western International Securities after she suffered significant losses in GWG Holdings. In her six-figure investor lawsuit, she is accusing the brokerage firm of self-dealing and making unsuitable investment recommendations in this alternative asset firm that is now accused of running a more than $1.6B Ponzi scam. The Claimant is looking at a complete total loss of the principal she invested in GWG’s L Bonds.

Shepherd Smith Edwards and Kantas (investorlawyers.com) is representing this investor. Her L Bond loss recovery claim is now part of the unit of broker fraud lawsuits we have brought against Western International Securities for selling these high-risk junk bonds to customers.

Our Client contends that she was reassured that GWG L Bonds were safe and secure. She claims that no meaningful disclosures were made to her regarding the risks involved. Even after the bonds collapsed, this investor alleges, her Western International Securities broker continued to assure her that all was well and she would get her money back. Instead, her financial future has been negatively impacted.

In her GWG L Bond lawsuit, this Claimant is alleging misrepresentations and omissions, breach of fiduciary duty, breach of contract, vicarious liability, and more.

Why Are Investors Suing Western International Securities Over GWG L Bonds?

• It is one of the 145 regional brokers who profited in commissions from selling these risky junk bonds to customers.
• The US Securities and Exchange Commission (SEC) filed a Regulation Best Interest case against this firm for allegedly unsuitably recommending these speculative, illiquid bonds to fixed-income customers and conservative seniors.
• Western International Securities and its brokers earned commission of up to 8% for marketing this high-risk investment to customers, many of whom went on to sustain significant losses.

What Were The Risks Involved That Should Have Prevented Brokers From Selling GWG Bonds To Retail Customers and Retirees?

L Bonds were alternative debt instruments from GWG Holdings that were high-risk. Yet that didn’t seem to stop brokerage firms from marketing these junk bonds to investors. When GWG filed for Chapter 11 Bankruptcy in 2022 and defaulted on payments, it was L Bond investors who ended up with serious losses.

• L bonds were speculative by nature and unrated.
• They were totally illiquid with no secondary trading market. This meant that GWG bond investors were reliant on the issuer’s redemption program, which was eventually suspended.
• L Bonds are considered junior corporate debt.  L Bond investors are considered lower priority when it comes to who gets paid first from the liquidity proceedings.
• Seeing as GWG suffered operational losses for years, this should have been a red flag indicating financial trouble.
• GWG started directing investor funds toward another company—Beneficient—but didn’t tell investors.
• Because brokers could make high commissions for selling GWG Bonds, this posed a conflict of interest that allowed many of them to ignore whether or not this was an investment that was in a customer’s best interests.

Why Hire Our Skilled GWG L Bond Loss Lawyers To Represent You Against Your Broker?

• Seasoned securities law firm that has spent decades solely focused on helping investors to get back their losses caused by broker misconduct or negligence.
• We are highly knowledgeable about the role brokers played in exposing investors to L Bonds and the legal grounds for which many of them should be held liable.
• Shepherd Smith Edwards and Kantas is made up of seasoned FINRA attorneys, mediators, and litigators that know how to maximize an investors’ chances for full financial recovery.

Explore Your Legal Options Over Your GWG Losses Today

Call (800) 259-9010 or contact us online to request your free case consultation.