In a Chapter 11 bankruptcy filing, the Official Committee of L Bondholders accused the company of a “classic Ponzi scheme.” According to the filing, Read about potential investment fraud associated with GWG Holdings founder Brad Heppner commingled money from the sale of L Bonds with cash from his own life settlement business, Beneficient. Heppner then allegedly used the profits from L Bond sales to prop up Beneficient and buy luxury cars and other expensive items for himself and his family, while paying little or no interest to bondholders.
Brokerage firms have a legal obligation to perform due diligence on investment products before selling them to clients. Unfortunately, many brokerage firms ignored clear warning signs that GWG Holdings’ L Bonds were a risky and speculative investment that would likely lose value. Moreover, brokerage firms were encouraged to sell GWG Holdings’ L Bonds because they paid up to 8% commissions on each transaction.
Investors who lost money on GWG Holdings’ L Bonds may be able to recover some or all of their losses through FINRA arbitration claims against their brokerage firm, National Securities. FINRA, the Financial Industry Regulatory Authority, oversees and regulates brokers and broker-dealers. Silver Law Group represents investors in FINRA arbitration claims against National Securities alleging that the firm failed to conduct adequate due diligence into GWG L Bonds and that the bonds were unsuitable for the investors’ investment profile.
In addition to pursuing legal action through FINRA arbitration, investors should contact a qualified investment loss attorney as soon as possible to preserve evidence and ensure that their rights are protected. There are time limitations on when an investor can file a claim, and the earlier an attorney is consulted, the greater the chances of a successful recovery.
If you or a loved one lost money on GWG Holdings’s L Bonds, please contact Dimond Kaplan & Rothstein P.A. for a free consultation. Our attorneys can review the facts of your case, identify potential defendants, and help you recover the full amount of your investment losses.
We offer a comprehensive consultation and case evaluation with an experienced investor loss attorney at no cost to you. To schedule an appointment with a lawyer, call or complete our online contact form.
Investors who invested in GWG Holdings’s L Bonds may be entitled to recover some or all of their investment losses. The Securities and Exchange Commission, FINRA, and other regulators are investigating the GWG L Bonds controversy, and it is important for investors to act now to protect their rights. By taking early action, investors can avoid costly delays and ensure that all relevant evidence is preserved.