Our Seasoned Securities Lawyers Continue to Fight For GWG L Bond Investors
Resignations of GWG Holdings CEO and CFO Are Latest Upset To Hit Beleaguered Alternative Asset Firm
GWG Holdings, Inc. CEO/President Murray T. Holland and CFO/Treasurer Timothy L. Evans recently resigned as the company’s executives. The two men stepped down in mid-November 2022 after an internal review found that other ex-board members’ worries about one investment were allegedly disregarded. Holland and Evans, however, remain on the alternative asset firm’s board.
Also, in an amended 8-K filing with the US Securities and Exchange Commission (SEC), the investigations committee of GWG’s current board admitted that it had previously falsely reported that these other former board members did not resign because of any disagreements, which was, in fact, the case. The dispute appears to have involved the proposed investment by GWG into Beneficient Company Group, LP. A special meeting was held to hear their concerns, but the investment was still approved. Since 2018, GWG Holdings has invested at least $230M in Beneficient.
In April 2022, GWG, which was about $2B in debt, filed for bankruptcy protection. This debt includes $1.6B in outstanding L bonds. These high-yield junk bonds were sold by brokerage firms all over the United States to investors, many of whom are now fighting to recoup their investment losses. Read GWG Holdings, Inc. and GWG Holdings L Bonds to learn more.
Shepherd Smith Edwards and Kantas (investorlawyers.com) are representing many L Bond investors against their broker-dealers and financial advisors for unsuitably recommending, and in some cases, overconcentrating their portfolios with GWG L Bonds. Many were never fully apprised of the risks they were taking on or that the company had been in financial trouble for some time.
More FINRA Lawsuits Our L Bond Investor Loss Securities Lawyers Have Filed Against Broker-Dealers:
- Another six-figure FINRA arbitration claim was filed against Centaurus Financial involving its ex-broker Deborah Anderson. This California financial adviser, who also has operated under the name Anderson Financial Management, allegedly unsuitably recommended risky investments, including GWG L Bonds, Shopoff Land Fund, and Sila REIT (formerly known as Carter Validus Mission Critical REIT), to this older, conservative investor. The combined recommendations ended up comprising nearly 40% of this claimant’s entire holdings, which heavily concentrated his IRA account in high-risk investments.
- An investor fraud claim against Lifemark Securities Corp. after its New Jersey broker Jeffrey Seth Morrison allegedly unsuitably invested the claimant’s retirement funds in GWG L Bonds. This older New York investor, who is requesting up to six figures in damages, ended up sustaining significant investment losses that have profoundly impacted her portfolio’s financial stability. Morrison is also the owner of Classic Benefit Planners Ltd.
How Can You Recover Your GWG L Bond Investor Losses?
With GWG Holdings has filed for bankruptcy protection and in so much debt, chances are you won’t recover much, if anything at all, from the proceedings. However, your broker-dealer could be held liable for allegedly selling you L Bonds or downplaying the risks. It also was their job to keep you abreast of the company’s growing financial woes and regulatory failures. (Already in 2021, L Bond sales had been voluntarily suspended after the alternative asset firm admitted that its reports in 2019 and 2020 were unreliable.)
At this point, your best chance of recovering your GWG L Bond investor losses may be to file a FINRA lawsuit against your broker-dealer. This is not the type of legal claim that you want to pursue without knowledgeable FINRA lawyers representing you. Many of the L Bond investors whom we are representing are alleging unsuitability, misrepresentations and omissions, due diligence failures, failure to supervise, broker misconduct, and negligence against the brokerage firms that they entrusted to keep their money safe.
How To Reach Our Savvy Brokerage Firm Negligence Securities Lawyer Firm
Call Shepherd Smith Edwards and Kantas at (800) 259-9010 so that we can help you explore your legal options.