Did You Buy GWG Holdings L Bonds From National Securities?

More than 27,000 investors were left stunned—and without their money—when GWG Holdings filed for Chapter 11 bankruptcy earlier this year, along with some of its own subsidiaries. The company is over $1.6 billion in debt, and investors have no idea what to do or what will happen next.

If you bought L Bonds from GWG Holdings through National Securities, Silver Law Group may be able to help you recover your investment losses. GWG Holdings filed for bankruptcy in April of 2022. Unfortunately, L Bonds investors will very likely 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 Risky And Speculative Investments

GWG Holdings (GWGH) is a financial services company based in Dallas, TX. The company offers life insurance and alternative investments to interested investors.

L Bonds are a type of bond that buys life insurance policies from policy holders who want to cash them out for whatever reason. The bond investors’ money finances the life insurance policy, and investors are paid when the original policy holder dies. L Bonds potentially offered a higher return than other bonds. But they also involved much higher risk and a considerable amount of speculation.

Many investors claim that their National Securities brokers did not inform them of these risks when they invested in GWG L Bonds. The brokers described them as a “safe and secure” source of income based on life insurance policies sales.

National Securities was involved in selling L Bonds to investors whose portfolios were not necessarily suitable for them. However, L Bond investing is a long game—investors must wait until the death of the original policyholder before seeing a return on that investment.

GWG Holdings’ bankruptcy wasn’t completely unexpected. Previously, the company disclosed an SEC investigation into their operations. After GWG missed financial reporting deadlines in 2021, NASDAQ threatened to delist the company from their exchange. The company’s stock price saw considerable decreases in 2022. While the company’s shares were trading over $9 per share at the beginning of the year, it has since been trading as low as $3.75.

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 National Securities Do Proper Due Diligence?

Silver Law Group represents investors in FINRA arbitration claims against National Securities alleging that they did not perform reasonable due diligence into GWG L Bonds or that the bonds were unsuitable for their investment profile.

Brokers and broker-dealers have a requirement and an obligation to understand their customers’ investment needs and to recommend suitable investments. They are also required to perform due diligence into the investments they sell before recommending them to any client.

When investors lose money with unsuitable investments, they may be able to recover through the FINRA arbitration process. An arbitration action is an alternative to a lawsuit and conducted with the Financial Industry Regulatory Authority, or FINRA, who oversees and regulates broker-dealers, brokers, and other investment professionals.

Silver Law Group represents investors in FINRA arbitration claims against National Securities 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.

Silver Law Group Represents Investors On A Contingency Fee Basis

If you invested in L-Bonds from GWG Holdings from National Securities, 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 both 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.