Did You Buy GWG L Bonds From Newbridge Securities?

Silver Law Group represents several investors who purchased GWG L Bonds through brokerage firm Newbridge Securities. Silver Law Group has filed securities arbitration claims on behalf of these clients seeking to recover investment losses caused by Newbridge’s recommendation to purchase L Bonds. Amongst other brokers at Newbridge recommending GWG L Bonds was Michael Whitaker, who operates in The Villages, Florida.

Background On GWG L Bonds

GWG Holdings is a Dallas-based financial services firm that offers a variety of services including life insurance and alternative investments. GWG sold billions of dollars worth of L Bonds over the past several years, and investors are now concerned about the status of these investments and the potential loss of principal.

Generally speaking, L Bonds are a relatively new financial product that purportedly offers higher yields than typical publicly traded, fixed income bonds. The bonds are supposed to help finance the purchase of the policies but offer significant risk to the investors.

According to a prospectus published by GWG for the offering of $2 billion of L Bonds, the bonds were sold with varying maturity terms ranging from 2 years to 7 years, with interest rates ranging from 5.50% to 8.50%. These bonds have significant risk and are not like traditional corporate bonds and other conservative investments.

GWG Holdings, Inc. Files For Bankruptcy

Earlier this year, GWG Holdings, Inc. filed a voluntary Chapter 11 bankruptcy petition in U.S. Bankruptcy Court for the Southern District of Texas. GWG cited liquidity issues and an SEC investigation, among other things, as contributing to its petition for bankruptcy protection.

This announcement is painful news for investors who own GWG L Bonds, an alternative investment sold to main street investors across the country through a network of brokerage firms. L Bond investors have been uncertain about their investments for several months in light of increasingly negative news about GWG, but GWG’s bankruptcy announcement confirms that L Bond investors’ principal is at serious risk and GWG investors are likely to experience substantial losses.

Did You Invest With Michael Whitaker Of Newbridge Securities? Call A GWG L Bond Lawyer Today

GWG’s bankruptcy announcement leaves investors with very few options to recoup their losses. Unfortunately, the bankruptcy process will likely last several years and it will likely result in investors receiving only a small portion of their investment back, if any.

L Bond investors may have potential claims against their brokerage firms and financial advisers for the improper sale of L Bonds. Among other things, brokerage firms are obligated to conduct due diligence on the investments they recommend, to only recommend investments that are suitable to each investor’s specific financial situation and needs, and to diversify investors’ portfolios so as not to subject them to outsized risk in one speculative and/or illiquid product such as L Bonds.

Silver Law Group represents dozens of L Bond investors and has already filed investor arbitration claims involving Newbridge Securities and Michael Whitaker. Silver Law Group’s attorneys are experienced in recovering investor losses due to misconduct by brokerage firms, financial advisers, and stockbrokers. Silver Law Group operates on a contingency fee basis, meaning you don’t owe us any money unless and until we recover for you. If you or someone you know purchased L Bonds, call toll free at (800) 975-4345 or email ssilver@silverlaw.com for a free and confidential consultation.