GWG Holdings

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.

GWG Holdings Defaults On $13.6M Owed To L Bond Investors

Published on: February 17, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Texas-Based Alternative Asset Firm Sends Letter About Failed Payments on Valentine’s Day

On February 14, 2022, GWG Holdings (GWGH) sent a letter to shareholders letting them know that it defaulted on the $3.25M in principal payments plus $10.35M in interest payments owed to L Bond investors.

The Texas-based alternative asset firm had a 30-day grace period to issue the payments beginning on January 15, 2022. GWG Holdings also stated that redemption requests would continue to be deferred. Now, L Bond investors are left with high-yield junk bonds that are not paying them the income promised. These are alternative investments that cannot be redeemed or sold.

SSEK Law Firm Investigates Investors’ Losses From GWG L Bonds Sold By Aegis Capital, Emerson Equity, and Many Others

Published on: February 8, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Deadline for GWG Holdings to Pay L Bond Investors $13.6M is Fast Approaching

Our investment fraud lawyers are speaking with investors who suffered losses in GWG L Bonds. These private placement, high-yield junk bonds were issued by GWG Holdings, Inc. (GWGH) and may have been marketed and sold by many broker-dealers, including Aegis Capital, Emerson Equity, and others.

GWG L Bonds have been available since 2012. However, their sales have been put on “pause” after being reinstated in December 2021 after a suspension of several months. Formerly called Renewable Secured Debentures, it was renamed L Bonds in 2015. GWG Holdings launched a new offering made up of its secured debt known as the Liquidity Bond 2020.

GWG Holdings Misses $13.6M in Payments to L Bond Investors

Published on: February 2, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Hundreds of Broker-Dealers May Have Sold Up to $2B of High-Yield Junk Bonds

InvestmentNews reports that according to an industry insider, GWG Holdings may have issued up to $2B of high-yield junk bonds in recent years. While Emerson Equity is the managing broker-dealer for the GWG Issuer, there may have been hundreds of other broker-dealers that also sold L-Bonds to investors.

In a January 15, 2022 filing with the US Securities and Exchange Commission (SEC), GWG disclosed that it hasn’t been able to issue $13.6M in principal payments and interest that it owes to L Bond investors. The Dallas-based alternative asset manager has a 30-day grace period to complete the payments or risk default.