Articles Tagged with GWG L Bond

What You Should Know if You Invested in GWG L Bonds

If you are someone whose financial advisor recommended that you invest in GWG Holdings L Bonds, by now you likely know that the alternative asset firm has filed for Chapter 11 bankruptcy protection despite owing you and thousands of other investors millions of dollars in payments and interest. Visit GWG Holdings, Inc. and GWG L Bonds for more information.

You should also know that the chances of you obtaining a full financial recovery from any bankruptcy proceedings are highly unlikely. This is why you should immediately contact our seasoned security fraud lawyers to find out whether it makes sense to pursue a claim against the brokerage firm that sold you L Bond private placements. 

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. 

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:

Brokerage Firm Allegedly Pursued Commissions over Customers’ Best Interests

Three Illinois retirees have filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against Moloney Securities, pursuing up to six figures in damages for bond losses sustained in GWG Holdings L Bonds. The two brokers, Shane Michael DeSherlia and Dale Erbin Timmerman, allegedly unsuitably recommended these risky junk bonds to the retirees. DeSherlia in Jerseyville, Illinois, is a registered investment adviser with Moloney Securities Asset Management, whereas Timmerman is associated with Timmerman & Co. in Vandalia, Illinois. 

Our professional L Bond investment loss attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at represent these elderly investors in their FINRA arbitration claim against Moloney Securities. An arbitrator will preside over their case in Chicago.

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.  

Broker Peter Po Unsuitably Recommended High-Risk Product

A California investor has sustained losses in GWG Holdings’ (NASDAQ: GWGH) L Bonds. NI Advisors and broker Peter T. Po unsuitably recommended this precarious high-yield bond. This retail customer has filed a Financial Industry Regulatory Authority (FINRA) arbitration claim requesting damages for his losses. 

Our GWG L Bond investment attorneys represent this claimant in his FINRA arbitration case. We are also investigating other claims of losses by investors whose brokerage firms sold them this illiquid, risky product. 

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