Learn more about recovering losses from GWG Holdings investments
If you invested in the now-bankrupt Dallas firm’s “L Bonds” investment product, it may be possible to recover your losses from the brokerage firms that sold these high-risk investments to you. The Kurta Law Firm represents investors who have been misled and defrauded by their financial advisor or stockbroker. These individuals may have violated FINRA regulations or committed securities fraud in selling these risky investment products.
L Bonds were alternative asset management investments that pooled money from bond investors to purchase life insurance policies on the secondary market and then used payouts when people died to repay those investors. The company stopped paying interest in January 2022 and ultimately filed for bankruptcy this year, leaving investors to wonder if they will ever receive the principal back that they invested.
The firm’s bankruptcy filing essentially halted all payments to bond investors as the company works to restructure its debt and obtain court approval to pay those claims. The process could take several years or more. Investors should not expect to see any return on their L Bond investments unless the company successfully restructures its debt and is approved by the bankruptcy court.
Investors who bought L Bonds through Titan Securities, one of the brokerage firms that sold them, have an additional complication to contend with as the Texas securities regulator recently fined the firm $20,000 for not properly reporting commissions that it earned on the sales of the bonds to clients. Titan Securities was one of the larger sellers of GWG’s bonds and will have to refund the commissions paid to clients that purchased these risky assets.
Investing in GWG’s L Bonds was a high-risk venture and only should have been recommended to sophisticated institutional investors with a very high tolerance for loss. Unfortunately, many investors were sold these risky investments by their stockbrokers who had a duty to make suitable recommendations and follow industry standards.
Some brokers may still be making calls to bond investors, telling them that they will be able to redeem their investments or that significant recovery is on the horizon. However, these statements are likely nothing more than delay tactics designed to stop you from filing a claim against the broker that sold you the L Bonds.
If you were sold the high-risk GWG Holdings L Bonds through a brokerage firm, then it is important to contact us right away as you may be entitled to compensation for your investment losses. Our attorneys are nationally recognized leaders in these cases and have handled hundreds of FINRA, NYSE and NASD arbitrations over the past 20 years. Contact our offices right away to schedule a free consultation. We do not charge a fee for our services unless we win or settle your case. Our firm handles securities fraud, negligence, and breach of fiduciary duty cases on behalf of investors nationwide. We look forward to hearing from you. To speak with an attorney, please call our toll-free number: 1-800-425-2112 or fill out our online contact form.