Bond Fraud Attorneys

I’m A GWG L-Bond Investor. How Can I Recoup My Losses? Our High-Yield Bond Fraud Lawyers Continue To Sue Brokerage Firms For Claimants

More than one year after GWG Holdings filed for bankruptcy, L-Bond investors are still fighting to recoup their losses. Shepherd Smith Edwards and Kantas Bond Fraud Lawyers (investorlawyers.com) are representing many of these claimants in suing their broker-dealers for damages. While many investors may be hoping to get their money back directly from the alternative asset firm, the chances for a full recovery that way—and who knows how long it will take or whether the company will be able to pay back much if anything at all—are pretty slim.

However, one way to get back your losses is to pursue your financial recovery from the brokers that marketed and sold you these troubled high-risk junk bonds that paid them high commissions. Unfortunately, thousands of L-Bondholders, many of them retirees and seniors, have suffered substantial losses in what they allegedly were led to believe were safe, conservative life settlement-backed bonds.

Here are three of L Bond investor loss claims recently filed in FINRA arbitration against brokerage firms. These are not our first bond fraud lawsuits against these financial firms related to investors’ GWG losses.

• Three Illinois claimants are suing Moloney Securities for up to $500K. These novice investors are accusing their Moloney Securities financial advisor of being more concerned about earning high commissions than fulfilling the fiduciary duty he owed them. Among the many broker fraud allegations they make in their FINRA lawsuit is the firm’s purported failure to supervise.

 

• A six-figure broker GWG L Bond fraud lawsuit against Ni Advisors on behalf of a retired California couple. The claimants are alleging unsuitability, misrepresentations and omissions, negligence, breach of contract, and breach of fiduciary duty. They are also suing Ni Advisors brokers Peter T. Poand Suihock Goy. Both of them are named in other GWG L bond lawsuits, for damages.

 

• Another L-Bond loss claim against Center Street Securities. The Florida investor contends that former Center Street Securities broker Shawn Clark unsuitably recommended these high-risk junk bonds even after this client made it clear that he wanted low-risk investments in which to place his hard-earned assets. The investor is seeking up to six-figures in damages.

Alleged Fraud Has Been Going On For Years. Warning Signs Allegedly Didn’t Stop Broker Recommendations

GWG executives are now accused of operating an alleged $1.6B Ponzi scam. According to SLCG Economic Consulting LLC owner Craig McCann and Senior Manager Regina Meng, long before GWG CEO Brad Heppner allegedly used L-Bonds to enrich himself and support his Beneficient Company Group, the purported fraud had been going on for a decade. This allegedly included using what appeared to be “demonstrably unreliable ad hoc mortality studies to fraudulently inflated its revenues and assets from 2013 through 2018 and beyond.” You can read more about their analysis here.

The cash problems and regulatory woes that followed should have been clear indicators to brokers to keep clients away yet that is not what happened. Instead, many investors were blindsided by their losses especially after GWG defaulted on $13.6M in bond payments it owed them early last year.

Why Sue Your Broker-Dealer Over Your L Bond Losses?

Brokerage firms have a duty to conduct proper due diligence, make suitable investment recommendations, fully apprise investors of the risks, and only market and sell each customer’s investments that are in line with their financial goals, investing profile, risk tolerance level, and other criteria. When broker misconduct or negligence leads to serious losses, including in investments that end up proving fraudulent, you may be able to sue.

Shepherd Smith Edwards and Kantas Bond Fraud Attorneys are one of the most well-respected securities law firms in the US. For over 30 years, we have dedicated our practice exclusively to helping investors pursue the damages they are owed because of broker fraud. We have the skills, resources, and manpower to represent clients against the largest Wall Street brokerage firms. Our efforts have resulted in thousands of investors collectively recovering many millions of dollars for the financial harm they suffered.

How To Contact Our GWG L Bond Fraud Attorneys

Call our team of Bond Fraud Attorneys at (800) 259-9010 today or contact us online to schedule your free, initial no-obligation case assessment.