Silver Law Group currently represents GWG L Bonds investors, and may be able to help you recover your L Bonds losses. Please contact us at 800-975-4345 for a no-cost, confidential consultation.
GWG L Bonds
GWG Holdings (GWGH) is a Dallas, Texas-based financial services company that offers life insurance and alternative investments. In 2021, GWG missed financial reporting deadlines, which caused NASDAQ to threaten to delist the company. The SEC is investigating GWG Holdings.
L Bonds are an instrument that pools money from investors to buy life insurance policies, and uses the death payouts to pay investors. L Bonds can offer higher-than-average returns for investors.
GWG used regional broker dealers and advisory firms to sell billions of dollars worth of L Bonds to individual “mom and pop” investors in recent years. Emerson Equity LLC, a San Mateo, California-based brokerage and investment adviser registered with FINRA and the SEC, was the main seller of GWG’s L Bonds.
GWG has said they rely “to a significant extent on L Bond sales to meet our ongoing financial obligations.”
Scott Silver was interviewed by the Wall Street Journal, and said that investors “were shocked to learn that their money was used to pay old investors while the company has been under SEC investigation.”
GWG had to stop selling L Bonds for most of 2021 because of missed deadlines for its annual report and the resignation of its independent auditor, Grant Thornton, LLP. They resumed sales in December, 2021, then stopped again in January, 2022.
GWG Holdings filed a form 8-K with the SEC, which said they would not make dividend payments on L Bonds for January, 2022. The 8-K also said that the company’s board of directors had approved management to retain a restructuring advisor.
GWG stock started 2022 trading at $9.68 per share, but has traded as low as $2.35 in January as more bad news about the company came out.
The Journal article states that a person familiar with the matter said that GWG is “exploring options such as refinancing its senior credit facilities and restructuring the L Bonds,” in addition to seeking the rescue financing.
Contact Silver Law Group If You Have Losses With GWG L Bonds
If you invested in L Bonds from GWG Holdings, contact Silver Law Group for a no-cost, confidential consultation at (800) 975-4345 or by email at ssilver@silverlaw.com.
Silver Law Group is a nationally-recognized law firm with extensive experience representing investors in securities arbitration and investment fraud cases. Scott Silver, Silver Law Group’s managing partner, is the chairman of the Securities and Financial Fraud Group of the American Association of Justice. Our attorneys are admitted to practice in New York and Florida and represent investors nationwide. Most cases are handled on a contingency fee basis, so nothing is owed unless we recover your money for you.