GWG Wind Down Trust Report Confirms That Filing A FINRA Lawsuit Is L Bond Investors’ Best Chance For Financial Recovery. Our GWG L Bond Loss Recovery Lawyers Are Representing Claimants In Suing Their Brokers
On February 15, the GWG Wind Down Trust report submitted a status report with the US Bankruptcy Court for the Southern District of Texas for the quarter that concluded on December 31, 2023.
While the Trust was able to generate money through a sale of certain tangible assets and its life insurance policy portfolio, it noted that it is finding it challenging to sell its shares in Beneficient, which last week closed at $0.2561/share—a significant drop from the original $15/share price.
The Beneficient Group is the company that GWG Holdings, Inc. Chairman Brad Heppner founded. He is now accused of operating GWG as a more than $1.7B Ponzi scam and diverting investors’ money to Beneficient.
Unfortunately, even more important to the many thousands of L Bond investors who are struggling to recoup their investment, the GWG Wind Down Trust has not been able to determine when it will have enough money to pay any distributions. However, this has not stopped some of the brokers that sold these high-risk junk bonds from telling customers that they can expect to receive most or all of their funds back.
Even the GWG Litigation Trust trustee has told investors that they should speak with a lawyer to determine whether they may have any claims against the parties that recommended GWG Holdings to them. That would be the more than 140 regional broker-dealers that allegedly unsuitably recommended this alternative investment to customers, overconcentrated their account in L Bonds, or engaged in some other type of financial advisor fraud or negligence.
Working With Seasoned L Bond Loss Recovery Lawyers Matters
Shepherd Smith Edwards and Kantas (investorlawyers.com) represent many of the investors who suffered losses in GWG. A lot of those who were financially harmed are retail investors, seniors, and retirees for whom high-yield bonds were always an unsuitable investment option.
Also, there was an increasing number of red flags leading up to the company’s 2022 bankruptcy filing that financial advisors could have paid attention to and then made attempts to protect their clients rather than continuing to expose them to what has proved to be serious portfolio losses.
Among our recent GWG Bond fraud lawsuits we have filed:
- A six-figure investment loss recovery claim against Centaurus Financial on behalf of a novice senior retiree with a conservative risk tolerance level. Instead, former Centaurus broker Duncan MacEachern purportedly disregarded this Michigan investor’s financial goals by allegedly unsuitably recommending L bonds and illiquid real estate investment trusts (REITs).MacEachern, who is now an LPL Financial stockbroker, has one disclosure on his CRD showing that another claimant is seeking $800K in damages for losses involving risky, illiquid investments.
- A FINRA arbitration claim in which Idaho retirees are seeking up to $500K in damages from Western International Securities. The firm’s broker allegedly unsuitably recommended GWG L bonds and non-traded real estate investment trusts (non-traded REITs).
These are not the only investor lawsuits we have filed against Centaurus and Western on behalf of clients. It should be noted that brokers earned high commissions from selling GWG L Bonds.
What Should You Do If You Are an L Bond Investor?
Contact Shepherd Smith Edwards and Kantas today to request your free, no-obligation case assessment. If you do have grounds for an investment loss recovery lawsuit, this is not litigation that you want to pursue without knowledgeable securities lawyers by your side.
We have been fighting for investors against broker-dealers and investment advisers for over 30 years. More than 90% of our clients have received full or partial financial recovery with our help.
Call (800) 259-9010 today or contact us online.