National investment fraud lawyer KlaymanToskes is investigating full-service brokerage firms that sold GWG L bonds in light of the Company’s Chapter 11 bankruptcy filed in April 2022.
GWG Holdings, through its subsidiary, GWG Life, LLC, owns and manages a portfolio of life insurance policies. GWG created products known as L Bonds, which pooled money from bond investors to purchase life insurance policies on the secondary market, and then used payouts from the policies when people died to repay the investors.
According to its Chapter 11 bankruptcy petition filed in April 2022, GWG describes itself as “a financial services firm with two principal types of assets: (1) secondary life insurance assets; and (2) economic interests in independent non-affiliated entities that operate in the alternative assets and epigenetics spaces, respectively.
According to Chapter 11 Bankruptcy court documents, 145 brokerage firms sold GWG L Bonds. However, there are many investment advisory representatives that are dually registered with brokerage firms that helped facilitate the sale of GWG L Bonds.
Brokerage firms have reportedly sold GWG L bonds include, including but are not limited to:
KlaymanToskes is currently representing GWG L Bond investors. If you were recommended to purchase GWG L Bonds by your financial advisor, please contact us for a free consultation.
In October 2020, the Enforcement Division of the SEC served a subpoena on GWGH in connection with an investigation regarding certain accounting matters and GWGH’s issuance of Bonds. After GWG indicated its intent to restart bond sales, which is believed to be at or around late 2021, the SEC issued subpoenas and document requests to individual Broker Firms that were selling or were considering selling GWGH Bonds. The document requests and subpoenas are allegedly related to bond sales practices. According to GWG, Public L Bonds have historically been sold by a seller network most recently comprised of approximately 145 Broker Firms.
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 us for a free consultation.