I’m An Older Investor. How Can I Recover My GWG L Bonds Losses?
Our Seasoned Private Placement Lawyers Can Help You Determine Whether You Have Grounds for Financial Recovery
More than a year after GWG Holdings defaulted on $2B in debt and filed for bankruptcy protection, it has become increasingly clear that much more could have been done to notify investors that the company was in financial trouble. Instead, thousands have been left with what could end up collectively being up to $1.3B in losses in a purported mass Ponzi scam.
Not only did the US Securities and Exchange Commission (SEC) notify GWG in 2020 that it was under investigation, but also, according to the Wall Street Journal, as far back as at least 2019, questions were already being raised about the millions of dollars from the company that were allegedly used to fund chairman Brad Heppner’s almost 1500-acre Texas range and private plane travel rather than go toward Beneficient, which he also owned.
This was money GWG L Bond investors were not even aware was being used for either. As far as they knew, their money was in “safe” life insurance policies from which they would receive a return when the original policyholders died.
Shepherd Smith Edwards and Kantas (investorlawyers.com) have been representing GWG investors in FINRA arbitration. Most recently, we filed two more L Bond fraud lawsuits on behalf of:
- A Maryland couple is seeking up to six figures in damages from Cape Securities. They claim that its former broker Chris Fagiolo allegedly unsuitably recommended GWG bonds even though they did not want to take on any high risk investments. Fagiolo is now an American Global Wealth Management financial advisor.
- Two elderly Texas investors are suing Lion Street Financial. They contend that broker Eric Stiba did not properly educate them about the high-risk nature of their GWG L bonds nor did he make any meaningful disclosures about this investment. Also, given their age and health issues, they are accusing the financial advisor of choosing a maturation date with the longest time frame available and that this was egregious given their age and health issues.
We are continuing to investigate other GWG L Bond investors’ claims of losses.
Why Speak With Our Knowledgeable Private Placement Lawyers?
Even with the bankruptcy case, class action securities litigation, and regulatory charges that have been brought, it can be hard to determine how much, if anything, GWG L Bond investors stand to get back from any of these proceedings. In the last few years, there has been growing concern as to why broker-dealers were not aware of the questionable developments going on at GWG, and/or if they knew, then why didn’t they do more to protect their clients and their money?
If your broker unsuitably recommended these high-risk junk bonds to you, misrepresented the risks, overconcentrated your account with too many private placements, or failed to properly conduct due diligence into what was really going on with GWG, you may be able to sue for damages. This is not the type of legal claim that you want to pursue without experienced junk bond loss attorneys by your side.
At Shepherd Smith Edwards and Kantas, we are well-versed in the fraudulent nature of these investments and the ways in which dozens of brokerage firms all over the US were negligent in their marketing and selling of GWG L Bonds to investors. With over a century’s worth of experience in securities law and the securities industry, our team of savvy broker fraud lawyers has the skills and resources to pursue even the most complex kinds of investment loss recovery claims.
During your free, no-obligation initial cases consultation, we will help you assess whether you have grounds for a broker misconduct lawsuit and explore your legal options with you.
How To Contact Our Savvy Private Placement Lawyers
Call (800) 259-9010 today or reach us online.