Center Street Securities Goes Out of Business After Selling GWG L Bonds
Shuttering of Fourth Broker-Dealer Is Warning To GWG Investors To Act Now
Dear GWG L-Bond Investors,
Once again, a brokerage firm has closed its doors after being sued by multiple investors who suffered losses in GWG Holdings after it filed for Chapter 11 bankruptcy protection last year. This time, the broker-dealer is Center Street Securities, which is headquartered in Nashville, Tennessee. The regional firm is one of dozens that sold about $1.6B of L Bonds to customers. It reportedly earned $3.3M in commissions.
However, in a recent filing with the US Securities and Exchange Commission (SEC), Center Street Securities noted that nearly three dozen investors had filed lawsuits against it to collectively seek up to $9.1 million in damages over their L Bond losses. Now that it is out of business, suing this broker-dealer could be a losing battle. This is why it is so important that if you invested in GWG, and you want to determine whether you have grounds for a legal claim against your financial advisor, the sooner you begin exploring your legal options the better.
Shepherd Smith Edwards and Kantas (investorlawyers.com) are representing L Bond investors against many of the broker-dealers that allegedly unsuitably sold them these high-risk junk bonds that were supposedly life settlement-backed bonds. Contact us today to request your free, no-obligation case assessment.
GWG L Bonds Were Always “Impaired,” Says Securities Litigation Experts
According to securities litigation experts Craig McCann and Regina Meng, “GWG L Bonds were always impaired.” And yet, they contend, the alternative asset firm was able to sell its high-yield bonds for about a decade because it didn’t have a large enough equity float for Wall Street analysts to pay too much attention, its “stock was too thinly traded to short-sell,” and there were a slew of brokerage firms that disregarded red flags purportedly because of the opportunity to earn high commissions. Read their full analysis.
Retail Investors and Retirees Are Among The Thousands Who Have Suffered Losses in GWG L Bonds
Unfortunately, many of those who suffered losses in GWG are seniors and novice investors who should have never been sold these alternative investments to begin with. Not only that, but also considering that there have long been warning signs that these were troubled investments, firms either knew better or, if not, then they should have known and done a better job of keeping many of their customers away. Instead, L Bond investors are now saying they were never fully apprised of the risks they were taking. For many, the losses to their portfolios and savings have been devastating.
Why Contact Our Trusted L Bond Loss Attorneys
For over 30 years, Shepherd Smith Edwards and Kantas have been representing investors from all walks of life and of all experience levels in pursuing the damages they are owed due to broker misconduct, unsuitability, misrepresentations, omissions, concentration, negligence, breach of fiduciary duty, and more. Our team of seasoned investment recovery loss attorneys, legal assistants, consultants, and others have collectively recovered many millions of dollars for thousands.
This includes many GWG L bond investors, including, most recently, a Washington State retiree who is seeking up to six figures in damages from Centaurus Financial. This broker-dealer is reportedly the only other firm aside from Emerson Equity to earn more in commissions from selling GWG investments than Center Street Securities. This is just the latest L bond loss lawsuit we have filed against Centaurus.
Should we decide to work together, you will become part of our unit of GWG investor loss claims represented by our entire firm. We have the skills, knowledge, and resources to fight for you.
Call our team of L Bond Loss Attorneys at (800) 259-9010 today.
Sincerely,
Shepherd Smith Edwards and Kantas