For GWG L Bond Investors, Filing A Broker Fraud Lawsuit May Be a Chance For Financial Recovery
Bankruptcy Court Approves GWG Holdings Plan which provides Minimal Hope for Investors.
More than a year after GWG Holdings filed for bankruptcy, its plan has been accepted by the US bankruptcy court in Houston and confirmed by voting bondholders. While this is a positive, forward movement for the bankruptcy proceedings, it is still not the best way for investors to recoup their losses.
GWG is accused of operating a more than $1.6B Ponzi scam. Investors who purchased life settlement-backed bonds known as L Bonds in later years had no idea that their money was being directed toward The Beneficient Company Group (BENF) instead. Shares from BENF will now reportedly be sold from the bondholders’ trust. However, as SLCG Economic Consulting Owner Craig McCann recently noted, this sale will likely drive BENF share prices down even more, rendering, at best, “10 or 20 cents on the dollar spread out over many years in the future.”
The majority of GWG L Bond investors are retail customers and retirees who have now suffered significant investment losses. Shepherd Smith Edwards and Kantas (investorlawyers.com) is representing many of them in their broker fraud lawsuits against the brokerage firms that sold them these high-risk junk bonds.
Most recently, this included yet another broker fraud case against Center Street Securities and its broker Joseph Martin LaTour. The claimant this time is an Arkansas retiree and inexperienced investor who suffers from health issues. From the start, he made it clear that he wanted to keep his retirement funds safe. Instead, his money was allegedly unsuitably invested in GWG L bonds even while his Center Street broker misrepresented these high-yield bonds as low-risk. All of this happened during a time when it was already becoming clear that GWG Holdings was in financial trouble. Now, this older investor is seeking up to six figures in damages.
Why Consider Filing an L Bond Loss Lawsuit For Damages?
Dozens of broker-dealers allegedly disregarded investors’ best interests when they marketed and sold GWG L Bonds to customers. While these same brokerage firms earned high commissions and fees from the transactions, many thousands of L bondholders have suffered significant losses.
At this point, who knows how long it will take for GWG’s bankruptcy plan to start giving L Bond investors back any money at all. Pursuing your brokerage firm for misconduct and negligence while holding them accountable, however, may be one way to recoup your losses.
Already, we are representing dozens of GWG L bondholders in their broker-fraud lawsuits. With over 30 years dedicated to fighting for investors, we have recovered many millions of dollars for our clients.
When you hire us, you are retaining the services of seasoned bond fraud recovery attorneys that have the skills, resources, and knowledge to pursue even the biggest Wall Street firms. Our GWG L Bond loss lawyers have an in-depth understanding of why these investments failed and the role that brokerage firms played in involving them in this alleged more than $1.6 Ponzi fraud.
How To Contact Our Savvy GWG L Bond Loss Lawyers
More than 90% of investors have achieved full or partial financial recovery with our help.
Call (800) 259-9010 today.