GWG Holdings

SSEK Law Firm Investigates Financial Gravity Family Office Services Adviser Mark Williams in Carmel, CA Over Possible GWG L Bond Sales

Published on: May 18, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Ex-Centaurus Financial Broker May Have Unsuitably Sold Risky Junk Bonds to Elderly Investors

Our GWG Holdings L Bond lawyers are looking into claims of L Bond losses by former customers of Mark John Williams, an ex-Centaurus Financial broker. Williams is currently a Kingswood Capital Partners stockbroker and Financial Gravity Family Office Services investment advisor out of Carmel By The Sea, California.

Several of his former customers, including elderly investors and retirees, have complained that he allegedly recommended and sold them GWG L Bonds. These high-yield bonds were too risky, illiquid, and speculative for these investors from the beginning. These contentions appear to be from when he was registered with Centaurus Financial and after with Forta Financial Group.

Texas Retirees Pursues 6-Figure GWG L Bond Claim Against Centaurus Financial

Published on: May 16, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Elderly Couple is Seeking Up to $500K Plus Interest and Costs Against Centaurus Financial

Two older investors, both retired and on disability, have filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against brokerage firm Centaurus Financial over losses they sustained from purchasing GWG L Bonds.

GWG Holdings, Inc., a Dallas-based alternative asset firm, filed for Chapter 11 bankruptcy in April 2022. Now, this Texas couple is among the many thousands who have been left holding these high-risk, illiquid junk bonds that may not be worth much at all at this point.

Emerson Equity Broker Tony Barouti Facing $1.37M in GWG L Bond Claims

Published on: May 16, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Los Angeles-Based Financial Advisor Allegedly Targeted Customers of Iranian Heritage

In an earlier GWG L Bond blog post, our securities attorneys reported we were looking into whether customers of Emerson Equity broker Tony Barouti had suffered losses in these high-yield bonds. In March 2022, investors filed two investor claims seeking $1.37M in damages.

Brokerage firm Emerson Equity is the managing broker-dealer for the GWG issuer of $1.6B of L bonds, backed by life settlements. On April 20, 2022, GWG Holdings, Inc. filed for Chapter 11 bankruptcy protection. The move came just two months after the Texas-based alternative asset firm defaulted on $13.6M in bond payments and interest it owed L Bond investors.

At Least 27,000 L Bond Investors Left At a Loss Following GWG Holdings’ Bankruptcy Filing

Published on: April 26, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Despite Misgivings, Court Approves $10M Financing for Troubled GWG Holdings

One day after GWG Holdings filed for Chapter 11 bankruptcy protection, Judge Marvin Isgur of the US Bankruptcy Court in Houston approved $10M in financing for the asset manager despite his concerns regarding the mechanics of the loan. The emergency loan will come from National Founders LP.

According to The Wall Street Journal (WSJ), in court papers, GWG said it needed the money to avoid “imminent liquidation.” The Texas-based alternative asset firm owes about $1.6B in L Bonds. Despite being illiquid and high-risk, these high-yield bonds were mainly marketed to individual investors by around 145 regional brokerage firms, including managing broker-dealer Emerson Equity. They earned high commissions of around 8% from the transactions.

Following GWG Holdings’ Chapter 11 Bankruptcy, SSEK Law Firm Steps Up Investigation of Brokerage Firms That Sold L Bonds

Published on: April 25, 2022 | by Shepherd Smith Edwards & Kantas, LLP

High-Yield GWG L Bonds May Now Be Worth 20 to 30 Cents on The Dollar

Our high-yield bond lawyers investigate brokerage firms that sold GWG L Bonds to their customers. On April 20, 2022, GWG Holdings, Inc., the issuer of these junk bonds, announced that it had filed for Chapter 11 bankruptcy protection.

The news comes in the wake of a slew of troubles involving the Texas-based alternative firm. GWG Holdings owes investors $13.6M in principal payments plus interest and is way behind in submitting yearly regulatory filings. It also has been under investigation by the US Securities and Exchange Commission (SEC) since 2020.

GWG Holdings Files For Chapter 11 Bankruptcy Protection

Published on: April 22, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Issuer of L Bonds Says SEC’s Probe Contributed to Its Demise

In the US Bankruptcy Court for the Southern District of Texas on April 20, 2022, GWG Holdings, Inc. (GWGH) voluntarily filed for Chapter 11 bankruptcy protection. The move was expected in the wake of the regulatory and financial woes plaguing the Dallas-based alternative firm.

GWG Holdings’ bankruptcy is bad news for investors, many of whom are retail customers, including elderly investors and retirees. In February 2022, the company, which sold $1.6B in life-settlement backed bonds via independent brokerage firms, had defaulted on $13.6M in principal payments and interest it owed investors of its L Bond series.

NI Advisors Sold GWG L Bond To Inexperienced Investor Who Suffered Losses

Published on: April 14, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Broker Peter Po Unsuitably Recommended High-Risk Product

A California investor has sustained losses in GWG Holdings’ (NASDAQ: GWGH) L Bonds. NI Advisors and broker Peter T. Po unsuitably recommended this precarious high-yield bond. This retail customer has filed a Financial Industry Regulatory Authority (FINRA) arbitration claim requesting damages for his losses.

Our GWG L Bond investment attorneys represent this claimant in his FINRA arbitration case. We are also investigating other claims of losses by investors whose brokerage firms sold them this illiquid, risky product.

GWG Holdings Expected To File For Chapter 11 Bankruptcy

Published on: April 12, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Dallas-Based Alternative Asset Firm Expected To Seek Bankruptcy Protection Very Soon

According to sources, GWG Holdings, Inc. (NASDAQ: GWGH) is preparing for Chapter 11 bankruptcy. The reports come after the Texas-based alternative asset firm notified the Securities and Exchange Commission (SEC) in an April 1, 2022 filing that it could not submit its 2021 yearly report and other financial statements. The firm has yet to retain an auditor since Grant Thornton stepped down from that role in December 2021.

Not having an auditor for this long can signify that a company is planning to seek bankruptcy protection. However, according to InvestmentNews, a GWG spokesperson refused to comment about such preparations when questioned.

Class Action Securities Lawsuit Filed Against GWG Holdings Over L Bond Losses

Published on: March 9, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Texas-Based GWG Holdings and its Directors Are Defendants in Class-Action Lawsuit

Two investors seeking class-action status have filed a lawsuit against GWG Holdings, Inc. (NASDAQ: GWGH). They are accusing the Texas-based alternative asset manager and investor of life settlements, as well as its directors, of making misrepresentations and omissions in offering documents of its L Bonds.

GWGH sold more than $350M of these high-yield bonds between August 2020 and April 2021, when sales were discontinued due to liquidity problems. The company also failed to submit its 2020 yearly report in a timely manner. In February 2022, GWG Holdings defaulted on $3.25M of principal payments plus $10.35M of interest owed to L Bond investors.

Emerson Equity Broker Tony Barouti May Have Sold GWG L Bonds to Customers

Published on: February 18, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Firm Owes Millions to Investors of GWG High-Yield L Bonds

Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) is looking into claims of losses by customers who purchased GWG L Bonds at the recommendation of Emerson Equity broker Tony Barouti.

Unfortunately, it appears that Barouti, who is based out of Los Angeles, may have unsuitably sold L Bonds to several investors, including retirees and older retail customers.