Shepherd Smith Edwards and Kantas Is Representing This Claimant And Many Other GWG Investors

Shepherd Smith Edwards and Kantas is representing a Texas widow in a FINRA arbitration claim against International Assets Advisory to recover six-figure losses from high-risk GWG L Bonds. The firm alleges that the broker-dealer unsuitably recommended these “junk bonds” to an inexperienced investor and failed to disclose the significant risks associated with the now-bankrupt entity.

A widow from Texas is seeking up to six figures in damages for losses she sustained in GWG Holdings L Bonds. These illiquid, high-risk junk bonds were sold by International Assets Advisory.  Shepherd Smith Edwards and Kantas (investorlawyers.com) is representing this semi-retiree investor in her investment loss recovery claim against the broker-dealer.

This Claimant is an inexperienced investor who entrusted her assets to International Assets Advisory and its then-financial advisor, Michael David Kolacz. Instead of placing her money in safe investments, as she had clearly stipulated, the Respondent unsuitably recommended GWG Holdings. This risky alternative asset firm is now accused of being run like a more than $1.6B Ponzi scam. GWG filed for Chapter 11 bankruptcy protection in 2022.

Our Client contends that even after GWG’s bankruptcy filing,  International Assets Advisory continued to offer reassurances that her GWG L Bond investment was safe, low-risk, and would generate income.  She is alleging that misrepresentations and omissions were made about this illiquid, high-risk junk bond fund.

In her GWG L Bond Recovery Claim, which we submitted to FINRA arbitration, this older investor is also alleging a failure to supervise, negligence, grossly negligent behavior, breach of contract, breach of fiduciary duty, vicarious liability, and more.

I’m A GWG L Bond Investor. What Are My Legal Options?

If you are an L Bond investor, know that there continues to be a low outlook for financial recovery through GWG Holdings’ bankruptcy proceedings—at best a 2.7% to 3.45% return of capital. Class action lawsuits, especially against bankrupt entities also generally don’t render much in terms of recouped investment losses.

What you can do is determine whether you have grounds for your own investor lawsuit against the brokerage firm that earned their 5%-8% in commissions when they marketed and sold you GWG L Bonds.

How Do I Know If My Broker Owes Me Damages For My L Bond Losses?

•  More than 145 regional broker-dealers sold L Bonds to their customers. They collectively earned more than $40M commissions and fees, even as investors are now left grappling with how to get their money back.
• GWG Holdings was in trouble long before the alternative asset firm went defunct. Yet many L Bond investors are now saying they were never informed of this by their financial advisor.
• The majority of GWG investors are seniors and retail investors for whom investing in L Bonds was a risky and unsuitable proposition from the start. Brokerage firms should have refrained from selling this product to these customers.

How Do I File A FINRA Arbitration Case To Pursue My GWG Losses?

You want to hire seasoned L Bond loss recovery lawyers who are experienced in this type of legal venue. Arbitration is not the same as going to court.  If we agree to work together, the Shepherd Smith Edwards and Kantas L Bond Loss Recovery Law Firm will conduct a thorough investigation into your GWG losses and prepare your Statement of Claim that it will submit to FINRA arbitration. We will represent you in all proceedings.

Why Can’t I File My Own L Bond Lawsuit Without Legal Representation?

It is a fact that investors who are represented by skilled FINRA attorneys consistently have better results in arbitration than those who don’t have a good lawyer. Our L Bond Loss Recovery Law Firm has helped thousands of investors to collectively recoup many millions of dollars in arbitration, mediation, and litigation against brokerage firms and investment advisers.

How To Contact Our L Bond Loss Recovery Law Firm

Call (800) 259-9010 or fill out this online form to schedule your free case consultation.