L Bond Fraud Attorneys

GWG L Bonds Investors Are Suing Their Broker-Dealers For Their Losses

Former GWG Holdings Founder Brad Heppner Is Charged With Securities Fraud

Shepherd Smith Edwards and Kantas L Bond Fraud Attorneys (investorlawyers.com) is continuing to represent investors who sustained serious portfolio losses after their broker unsuitably recommended GWG L Bonds. Alternative asset firm GWG Holdings, which filed for bankruptcy in 2022, is accused of running a more than $1.6B Ponzi scam.

Earlier this month, GWG founder and chairman Brad Heppner was arrested and indicted for allegedly stealing over $150M from the now-defunct company.

He is charged with securities fraud, wire fraud, conspiracy to commit both, making false statements to the auditor, and falsifying records. He and others are accused of misappropriating money from GWG Holdings through Highland Consolidated Limited Partnership, which is a shell company he controlled.

According to the criminal indictment, in 2018, GWG took an equity interest in Texas financial firm Beneficient, of which Heppner was the CEO. GWG was consolidated with Beneficient. Heppner purportedly characterised a $141M debt on Beneficient’s books as a loan made by Highland Consolidated Limited Partnership.

He described the latter as a third party. The indictment goes on to explain that GWG purportedly made payments of at least $300M to Beneficient, including to supposedly satisfy the latter’s debts to the supposed lender. The US government alleges that more than $150M went to Heppner, who then used the money to fund his lifestyle.

FBI Assistant Director Christopher G. Raia claims that Heppner “falsified documents, made misleading statements to investors, and obstructed an investigation by regulatory authorities.” Raia ties GWG’s bankruptcy, which cost retail investors, to Heppner’s alleged fraud.

Thousands of L Bond Investors, Including Many Retirees, Suffered Huge Losses

GWG L Bonds, which are high-risk junk bonds, were sold by dozens of regional brokerage firms to retail investors, including seniors. When GWG was forced to shut down, many of them were left with serious losses. Meanwhile, the brokerage firms and their financial advisors that sold GWG bonds earned high commissions of up to 8%.

There are concerns that these payments may have incentivised brokers to unsuitably recommend this speculative, risky, and illiquid investment to those seeking more conservative products.

Representing L Bond Investors Against Brokerage Firms

Shepherd Smith Edwards and Kantas L Bond Fraud Attorneys are representing dozens of investors, including many seniors, in their GWG investment loss recovery claims. If we decide to work together, you will become part of our unit of the L Bond lawsuit against your broker-dealer.

Many of the L Bond loss lawsuits we have filed are alleging unsuitability, misrepresentations and omissions regarding the risks and the problems plaguing GWG, overconcentration, failure to conduct the necessary due diligence, breach of fiduciary duty, and more.

Your broker-dealer also could be held liable for failing to properly supervise your investments and your financial advisor’s activities in your account.

Because we work on a contingency basis, you would only pay us for our securities law services if we won an arbitration award or secured a settlement for you. Contact our L Bond fraud attorneys today to request your free, no obligation case consultation.