GWG L Bond Losses

Soreide Law Group is currently investigating claims that investors have made against brokers/financial advisors who made recommendations to purchase GWG L Bonds.
The L bond was a specialty high-yield bond created and issued by GWG Holdings (GWGH) from 2012 through 2021.  This bond was a private placement. The L bond financed the purchase of life insurance policies on the secondary market, paying policyholders more than the policy's surrender value. The L bond is highly speculative and sought to provide a high yield for the bondholder in exchange for the risk that insurance policy premiums or benefits may not be paid. GWG Holdings suspended L bond sales, April of 2021.
The GWG L Bonds were highly illiquid.  Bondholders could not resell them except back to GWG Holdings at a redemption fee.
As of Sept. 30, 2020, the firm's portfolio held 1,081 insurance policies valued at $1.92 billion in benefits. On June 3, 2020, GWG offered a $1 billion L bond issue, and then on July 1, 2020, announced a $2 billion offering.
GWG Holdings did not file its annual report for the year ending Dec. 31, 2020, and a Form 10-Q for the quarter ending March 31, 2021. After failing to file its 2020 annual report, GWG Holdings suspended its offering of L Bonds. The second quarter of 2021, several members of the Board of Directors reportedly resigned.
It was reported that GWG Holdings, stated in prospectuses that: "Investing in our L Bonds may be considered speculative and involves a high degree of risk, including the risk of losing your entire investment."
FINRA states in their “Investors Rights and Responsibilities,” that before recommending the purchase or sale of any investment or investment strategy, a broker/dealer or financial advisor must have reasonable grounds for believing that the recommendation is suitable for a client, after considering the client’s other investments, financial situation, needs and objectives, and all other information obtained through the exercise of reasonable diligence, which are known as the “essential facts” concerning every customer.
If your broker recommended the purchase of the high-risk and illiquid private placement, GWG L Bonds, and like many investors, you suffered devastating losses, you may be able to recover your losses through a FINRA arbitration.  Contact Soreide Law Group and speak to an experienced securities lawyer regarding the possible recovery of your financial losses through a FINRA arbitration at:  888-760-6552.
Soreide Law Group works on a contingency fee basis, no fee if no recovery, and represents our clients nationwide before FINRA.