High-Yield GWG L Bonds May Now Be Worth 20 to 30 Cents on The Dollar
Our high-yield bond lawyers investigate brokerage firms that sold GWG L Bonds to their customers. On April 20, 2022, GWG Holdings, Inc., the issuer of these junk bonds, announced that it had filed for Chapter 11 bankruptcy protection.
The news comes in the wake of a slew of troubles involving the Texas-based alternative firm. GWG Holdings owes investors $13.6M in principal payments plus interest and is way behind in submitting yearly regulatory filings. It also has been under investigation by the US Securities and Exchange Commission (SEC) since 2020.
GWG sold $1.6B of L Bonds to investors. According to InvestmentNews, one anonymous investor has speculated that these risky, illiquid financial instruments may now be worth 20 cents to 30 cents on the dollar.
Our GWG Holdings L Bond investment lawyers have filed Financial Industry Regulatory Authority (FINRA) arbitration claims against Center Street Securities and NI Advisors on behalf of L bond investors. In the wake of the bankruptcy news, we are ramping up our efforts to investigate the other broker-dealers that sold these junk bonds to customers.
Call Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) today at (800) 259-9010.
About 145 Brokerage Firms sold GWG L Bonds
Emerson Equity, LLC has been the managing broker for these L Bonds. This firm and a network of regional brokerage firms marketed and sold these high-yield bonds to retail customers, including retirees and other elderly investors. They earned high commissions in the process.
Approximately 145 brokerage firms sold GWG L Bonds. Our skilled securities lawyers are investigating all of them, including:
- Emerson Equity
- NI Advisors
- Center Street Securities
- Centaurus Financial
- Aegis Capital
- International Assets Advisory
- Arete Wealth Management
- Western International Securities
- Cabot Lodge Securities
- M Stevens Securities
GWG L Bonds are risky, speculative, and illiquid. They were always unsuitable for most retail customers. We are now hearing that brokers may have made misrepresentations or omissions about these investments.
According to GWG, in December 2021, the SEC started subpoenaing the broker-dealers that had already been selling L Bonds or were thinking of selling them. Because of these inquiries, these firms became reluctant to sell the bonds, and low sales resulted.
GWG said that the Commission’s probe of the company and these firms contributed to its collapse. Also, in April 2021, GWG suspended its sale of L Bonds to address questions related to the regulator’s investigation. Liquidity issues occurred as a result.
Seasoned High-Yield Bond Lawyers
For over thirty years, SSEK Law Firm has been at the forefront of helping investors of junk bonds recoup their losses. Our high-yield bond attorneys have gone up against the biggest firms on Wall Street to recover losses for our clients. To explore your legal options over your GWG L bond losses, call SSEK Law Firm at (800) 259-9010 today.