FINRA Arbitrator Lawyers

GWG L Bonds Unsuitable For “Perhaps Anyone” Declares FINRA Arbitrator. Investor Awarded Almost $100K Against Greenberg Financial Group

The FINRA arbitrator who ordered brokerage firm Greenberg Financial Group and its longtime financial advisor David Michael Sherwood to pay $102K (including damages, fees, and interest) to a claimant called GWG L Bonds “not a suitable investment for the {client} or perhaps anyone.” These high-risk junk bonds, issued by GWG Holdings, were marketed and sold by approximately 40 regional brokers to retail investors, including retirees and seniors, all over the United States.

GWG, which filed for Chapter 11 bankruptcy protection in 2022, is accused of operating a more than $1.6B Ponzi scam. Meanwhile, L Bond investors, who thought they were buying into safe life settlement bonds, have found themselves with significant losses.

The sole arbitrator to rule on this GWG bond lawsuit found that Greenberg and its Arizona broker committed fiduciary breaches when they allegedly unsuitably recommended these high-yield bonds even though for years the alternative asset firm had exhibited “loss and large negative cash flows.” Tucson, AZ stockbroker David Sherwood, who has been a Greenberg Financial registered representative for more than 22 years, has other disclosures on his CRD. This includes a number of investor claims, many of which resulted in settlements. Excessive trading, unsuitability, and unauthorized trading are among the other allegations made against him.

Working With Our Skilled GWG L Bond Loss Recovery Lawyers Can Maximize Your Chances For a Successful Case Outcome

L Bonds were always risky, unrated, illiquid, and speculative investments. Investors were required to put up a minimum of $25K to get involved in these private placements used to purchase life insurance policies on the secondary market. Many of those who bought these life settlement-backed bonds were not aware that these were callable or auto-renewable.  They also didn’t know that in 2018 the alternative asset company stopped investing in life insurance policies and instead was allegedly redirecting these funds toward GWG Chairman Brad Heppner’s The Beneficient Company Group.

Shepherd Smith Edwards and Kantas (  is representing dozens of investors against the broker-dealers that sold GWG L Bonds to clients. Many thousands of retail investors collectively lost millions of dollars, including the income they expected to make from these life settlement-backed bonds.

More than 90% of our clients have received full or partial financial recovery because of our skilled securities representation and personalized attention. We are seasoned bond fraud attorneys who have the resources and experience to pursue your claim and represent you before a panel of arbitrators. We understand the nature of these investments, why they failed, and the reasons that brokers should be held liable.

How To Contact Us To Discuss Your L Bond Losses

Call (800) 259-9010 or fill out this form.



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