Emerson Equity GWG L Bond Losses?

If you have lost money in the stock market due to fraud, misrepresentation, negligence, or for other reasons, we can help you. We have successfully recovered over $250 million in FINRA securities arbitrations.*

Need Legal Help? Contact Us. Call +1 (888) 997-9956
Updated on: May 4, 2022

SEC Investigates Brokerage Firms for GWG L Bonds Sales Practices

National investment fraud lawyers KlaymanToskes is currently representing investors that have incurred GWG L Bond losses from unsuitable investment advice by Emerson Equity LLC and its selling group members.

What is Emerson Equity?

Emerson Equity LLC is registered with the Securities and Exchange Commission as a broker-dealer member of the Financial Industry Regulatory Authority. The firm is also a SEC registered investment adviser. According to its website, Emerson Equity has more than 150 investment professionals across the country. Emerson Equity served as the managing broker-dealer for GWG L Bonds.

How Did Emerson Equity Sell GWG L Bonds?

Emerson Equity entered into participating dealer agreements with certain other broker-dealers known “selling group members,” to authorize those broker-dealers to sell our L Bonds. According to a court filing in the GWG Holdings Bankruptcy, there are 145 brokerage firms that sold GWG Holdings.

Brokerage Firms that Sold GWG L Bonds Under SEC Investigation

According to a court filing in the GWG Bankruptcy, the SEC is investigating the sales practices of brokerage firms that sold GWG L Bonds. Specifically, the SEC sent subpoenas and document requests to individual Broker Firms that were selling or were considering selling GWGH Bonds. In some instances, the SEC’s information requests have been sent to brokers on an ongoing, or even daily, individual transaction-level basis. A number of brokerage firms allegedly indicated that they would not resume sale of the L Bonds until further notice due to concerns of getting involved further in the SEC’s investigation.

GWG Holdings Investigated by the SEC

On October 6, 2020, GWG Holdings received a subpoena to produce documents from the Chicago office of the SEC’s Division of Enforcement. The requested information from the October 2020 and related subpoenas concern GWG Holdings’ investment products, including its L Bonds, as well as various accounting matters. among them, the consolidation for financial reporting purposes of Beneficient by GWG Holdings, goodwill valuation, and the accounting related to the ExAlt Trusts, related party transactions, life insurance policies, and the calculation of the debt-coverage ratio.

Which Firms Sold GWG L Bonds?

The GWG Bankruptcy ongoing in Texas revealed that there are 145 brokerage firms that sold GWG L Bonds. Among the firms alleged to have sold GWG L bonds include:

  • Centaurus Financial, Inc.
  • Center Street Securities
  • Aegis Capital, LLC
  • NI Advisors
  • Western International Securities, Inc.
  • Allied Beacon Partners
  • Moloney Securities
  • Strategic Financial Partners
  • Arete Wealth Management
  • Newbridge Securities

Lost Money Investing in GWG L Bonds?

KlaymanToskes is a leading national securities law firm practicing exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. KlaymanToskes has recovered more than $230 million for investors in FINRA arbitrations. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.

Contact GWG L Bonds Attorneys

Lawrence L. Klayman, Esq.