Shepherd Smith Edwards and Kantas is representing a group of investors in a FINRA Arbitration

The law firm Shepherd Smith Edwards and Kantas has filed a FINRA arbitration lawsuit against Centaurus Financial, seeking up to $1 million in damages on behalf of a group of inexperienced investors who were sold high-risk GWG Holdings L Bonds. The claim alleges that Centaurus brokers misrepresented these illiquid, high-commission junk bonds as safe investments while failing to disclose the immense risks and red flags associated with the now-bankrupt alternative asset firm.

In FINRA arbitration, our L Bond loss recovery attorneys are representing a group of investors in pursuing up to $1M in damages from Centaurus Financial. The Claimants had no experience with private placements. Yet their Centaurus broker unsuitably recommended and sold them these high-risk junk bonds from GWG Holdings, which is now accused of running a more than $1.6B Ponzi scam.

This is not the first investor lawsuit involving these likely fraudulent investments that Shepherd Smith Edwards and Kantas (investorlawyers.com) has made against Centaurus or other brokerage firms.

At no time did Centaurus or its agents warn these Claimants about the incredible risks involved or that red flags had arisen indicating trouble. Instead, the Respondents allegedly misrepresented L Bonds as safe and low-risk. In their GWG loss lawsuit, these investors are alleging unsuitability, misrepresentations and omissions, negligence, grossly negligent behavior, breach of fiduciary duty, breach of contract, breach of fiduciary duty, vicarious liability, and more.

They are seeking to recover all sums lost in their accounts, any lost opportunities, rescission, statutory damages, punitive damages, pre-award and pre-judgment interest, legal fees, and all related costs incurred from making this claim, as well as any other relief owed.

Why Are Investors Suing Brokerage Firms Over GWG L Bond Losses?

• Besides the Ponzi fraud allegations, these were risky, unlisted, illiquid, auto-renewable callable bonds that should never have been sold to retail investors.
• L-Bonds were supposedly secured by collateral, yet their indenture agreements got rid of bondholder rights. Many investors are saying they were unaware of this.
• Considered junior unsecured debt, even after senior debt was repaid, there were insufficient assets to pay back L bonds when the time came.
• Brokers earned high commissions for selling these junk bonds to customers. These payments scaled according to maturity dates.
• Regulatory and financial woes involving GWG did not seem to dissuade some financial advisors from keeping customers in L Bonds.

GWG Holdings filed for Chapter 11 bankruptcy protection in April 2022. Our L Bond loss recovery law firm is one of the securities firms leading the charge in pursuing and winning damages for GWG Bond investors. Brokerage firms should have known better than to market and sell these high-risk alternative investments to customers.

Why Should You Hire Trusted L Bond Loss Recovery Attorneys?

• Shepherd Smith Edwards and Kantas is highly knowledgeable about why these private placements failed and the legal reasons that the brokers that sold them should be held liable.
• We are seasoned securities attorneys who have gone up against many of the regional broker-dealers that sold GWG to retail customers and retirees.
• Our track record is excellent when it comes to winning awards and negotiating settlements for investors. More than 90% of our clients have secured full or partial financial recovery through our skilled and dedicated efforts.
• We offer not just robust investor loss representation but also customized attention to you and your GWG L Bond case.
• Waiting out the bankruptcy proceedings against GWG, or relying on any class action securities fraud settlement against the alternative asset firm, is unlikely to get back all of your money.

Explore Your Legal Options Over Your GWG L Bond Losses Today

Call our L Bond Loss Recovery Attorneys at (800) 259-9010 or contact us online to schedule your free, no obligation case assessment.