Did Cabot Lodge Securities Sell You GWG L Bonds?

If Cabot Lodge Securities sold you L Bonds from GWG Holdings, Silver Law Group may be able to help you recover your investment losses. GWG Holdings filed for bankruptcy in April, 2022 and it is expected that L Bonds investors will lose a significant amount of their principal.

Silver Law Group represents GWG L Bonds investors in FINRA arbitration claims to recover their investment losses. Contact us at 800-975-4345 for a no-cost, confidential consultation.

GWG L Bonds Are Speculative Investments

GWG Holdings (GWGH) is a Texas-based financial services company that offers life insurance and alternative investments.

L Bonds are a type of bond that buys life insurance policies from the policy holder. Bond investors’ money finances the life insurance policy, and investors are paid when the policy holder dies. L Bonds can offer a higher return than other bonds, but they also involve considerable speculation and high risk.

Many investors claim that their broker-dealers, such as Cabot Lodge, did not inform them of the risks of investing in GWG L Bonds when they sold them and instead described them as a safe and secure source of income.

News of GWG’s bankruptcy did not come without warning. GWG had disclosed that the SEC is investigating the company. In 2021, GWG missed financial reporting deadlines, and NASDAQ threatened to delist the company. The company’s stock price has dropped significantly in 2022, trading as low as $3.75 after starting the year at over $9 per share.

In January, 2022, GWG Holdings filed an 8-K with the SEC stating that they would not make dividend payments on L Bonds for that month, and that the company had approved hiring a restructuring advisor.

Did Cabot Lodge Do Proper Due Diligence?

Silver Law Group represents investors in FINRA arbitration claims against Cabot Lodge and other broker-dealers alleging that they did not perform reasonable due diligence into GWG L Bonds or that the bonds were unsuitable for their investment profile.

Broker dealers have an obligation to understand their customers’ investment needs, recommend suitable investments, and to perform due diligence into the investments they sell. When investors lose money with unsuitable investments, they may be able to recover through the FINRA arbitration process.

Silver Law Group Represents Investors On A Contingency Fee Basis

If you invested in L Bonds from GWG Holdings from Cabot Lodge Securities or other broker-dealers, contact Silver Law Group at (800) 975-4345 or by email at ssilver@silverlaw.com.

Silver Law Group is a nationally-recognized law firm with 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.