GWG Holdings

Texas Bankruptcy Judge Approves New Chapter 11 Financing Option for GWG Holdings

Published on: August 25, 2022 | by Shepherd Smith Edwards & Kantas, LLP

New Financing Package Is Still No Guarantee of Financial Recovery for 27,000 L Bond Investors

The Texas Southern Bankruptcy Court has approved a new debtor-in-possession financing package for GWG Holdings. The alternative asset firm, which sold $1.6B of L Bonds to investors, filed for Chapter 11 bankruptcy protection in April 2022. Not long after, a judge at the US Bankruptcy Court in Houston allowed GWG to borrow a $10M emergency loan from National Founders LP to avoid immediate liquidation.

This new verbally approved financing package is for $65M and offers the option to sell GWG’s life insurance asset portfolio for at least $610M—that’s $1B less than what L Bond investors are owed. It takes the place of another $65M financing package deal, includes lower interest rates and fees, and provides other protections. The loan is to be issued by Chapford SMA Partnership LP.

SSEK Law Firm Is Representing More Investors with GWG L Bond Claims Against Centaurus Financial

Published on: August 24, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Retail Customers Are Each Requesting Up to Six Figures in Damages for Their Losses

Our GWG L Bond loss attorneys continue to file Financial Industry Regulatory Authority (FINRA) arbitration claims against Centaurus Financial because its affiliated brokers unsuitably marketed and sold L Bond to customers, including inexperienced investors and retirees.

Here are the recent claimants and the Centaurus brokers involved:

Centaurus Recommended GWG Holdings L Bonds To Houston Investor Who Was Saving For Retirement

Published on: August 4, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Claimant files FINRA arbitration claim for up to six figures in damages

A Houston, Texas investor has filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against Centaurus Financial after he sustained losses in GWG Holdings L Bonds. These risky junk bonds were unsuitable for this inexperienced retail investor, yet his Centaurus broker allegedly recommended and sold L Bonds to this claimant.

GWG Holdings, Inc., which sold $1.6B of L bonds to investors through brokerage firms like Centaurus, filed for Chapter 11 bankruptcy protection in April 2022. Thousands of investors seek to recover losses in these complex, speculative, and illiquid high-yield bonds.

Emerson Equity Wholesalers That Pitched GWG L Bonds Leave The Firm

Published on: July 14, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Leading Broker-Dealer Pitched Regional Broker-Dealers To Sell These Risky Junk Bonds

Securities lawyers at SSEK are investigating Emerson Equity wholesalers that pitched risky junk bonds. According to InvestmentNews, a review of BrokerCheck data suggest several Emerson Equity wholesalers across the US have left the firm since the beginning of 2022. They are the same wholesalers responsible for pitching GWG L Bonds to regional broker-dealers.

Emerson, the managing brokerage firm in selling these risky, life settlement-backed bonds for GWG Holdings, Inc., has partnered with over 140 regional brokerage firms to market and sell L Bonds to investors, including retail customers and retirees.

NAV Advisors’ Marc Korsch in Sarasota, Florida Allegedly Sold GWG L Bonds to Customers

Published on: July 3, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Customers of Barred Centaurus Financial Broker Are Requesting Over $7.4M in Damages

Marc Frederick Korsch, the CEO of NAV Advisors in Sarasota and a former Centaurus Financial registered representative, is reportedly involved in a GWG Holdings L Bond case. A Centaurus Financial investor filed this case. Although not a respondent in the Financial Industry Regulatory Authority (FINRA) arbitration claim, Korsch allegedly unsuitably recommended this risky life settlement-backed bond to the customer.

GWG Holdings, Inc. filed for Chapter 11 bankruptcy protection in April 2022. It sold $1.6B of L Bonds to investors through more than 140 regional brokerage firms and financial advisors. These firms earned high commissions from the transactions. Visit GWG Holdings, Inc. and GWG Holdings L Bonds for more information.

GWG Managing Broker-Dealer Emerson Equity Reports Possible Financial Woes

Published on: May 30, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Emerson Equity’s Audited Financial Statement With the SEC Reports Problems Involving Unnamed Offering

Emerson Equity disclosed problems involving an unnamed offering in its yearly audited financial statement with the US Securities and Exchange Commission (SEC). This unnamed offering could potentially cause financial harm to the brokerage firm. The full-service broker-dealer, which works with high net worth individual investors and institutional clients, is the lead seller and underwriter of the L Bonds issued by GWG Holdings, Inc.

In April 2022, GWG Holdings, which sold $1.6B of L Bonds to investors, announced filing for Chapter 11 bankruptcy protection. Emerson Equity is the lead seller of these high-yield bonds. It partnered with more than 140 regional brokerage firms to sell these life settlement-backed bonds to customers.

Kansas City Retiree Files GWG L Bond Claim Against Titan Securities and Rodger Sprouse of Sprouse Financial in Lee’s Summit, MO

Published on: May 25, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Claimant Says He Was Never Apprised of the Risks Involved in GWG ‘Junk’ L Bonds

A retired Missouri worker has filed a six-figure Financial Industry Regulatory Authority (FINRA) arbitration claim against Titan Securities and its broker, Rodger Sprouse, over losses sustained in GWG L Bonds. The claimant, who is on disability and was forced to stop working after an injury, is an inexperienced investor.

The claimant contends that Titan Securities and Sprouse allegedly unsuitably recommended these illiquid, speculative junk bonds without fully informing him about the risks. Sprouse is also the owner of Sprouse Financial in Lee’s Summit.

Centaurus Financial Allegedly Unsuitably Recommended GWG Holdings L Bonds, Claims Another Texas Retiree

Published on: May 18, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Independent Broker-Dealer Had Partnered With Emerson Equity to Sell Risky Junk Bonds

Our experienced GWG Holdings L Bonds attorneys represent another investor in Financial Industry Regulatory Authority (FINRA) arbitration against Centaurus Financial. The claimant is a Houston retiree who entrusted his assets to the firm. Now, he is seeking up to six figures in damages.

Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) represent investors who a broker-dealer may have unsuitably sold GWG Holding L Bonds. Now that GWG Holdings, Inc. has filed for Chapter 11 Bankruptcy, L Bondholders are scrambling to recoup their losses from these high-yield bonds that may not be worth much, if anything at all, at this point.

Texas Retirees Pursues 6-Figure GWG L Bond Claim Against Centaurus Financial

Published on: May 16, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Elderly Couple is Seeking Up to $500K Plus Interest and Costs Against Centaurus Financial

Two older investors, both retired and on disability, have filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against brokerage firm Centaurus Financial over losses they sustained from purchasing GWG L Bonds.

GWG Holdings, Inc., a Dallas-based alternative asset firm, filed for Chapter 11 bankruptcy in April 2022. Now, this Texas couple is among the many thousands who have been left holding these high-risk, illiquid junk bonds that may not be worth much at all at this point.

Emerson Equity Broker Tony Barouti Facing $1.37M in GWG L Bond Claims

Published on: May 16, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Los Angeles-Based Financial Advisor Allegedly Targeted Customers of Iranian Heritage

In an earlier GWG L Bond blog post, our securities attorneys reported we were looking into whether customers of Emerson Equity broker Tony Barouti had suffered losses in these high-yield bonds. In March 2022, investors filed two investor claims seeking $1.37M in damages.

Brokerage firm Emerson Equity is the managing broker-dealer for the GWG issuer of $1.6B of L bonds, backed by life settlements. On April 20, 2022, GWG Holdings, Inc. filed for Chapter 11 bankruptcy protection. The move came just two months after the Texas-based alternative asset firm defaulted on $13.6M in bond payments and interest it owed L Bond investors.