GWG L Bond Investors Seek Recovery After GWG Bankruptcy

GWG Investors around the nation are still reeling from the recent news that GWG Holdings, Inc. and some of its subsidiaries filed for a Chapter 11 bankruptcy. GWG, a financial services company, owes $1.6 billion in “L Bonds,” financial instruments that pooled the money of investors to buy life insurance policies on the secondary market, with promises that the investors would make a profit from gains made after policyholders had died.

An estimated 27,000 investors invested with GWG—for an average of $45,000 each. But all is not necessarily lost, as investors pursue various ways to recover their investments including claims against the selling brokerage firms.

Investors may file creditor claims with the bankruptcy court. The Chapter 11 proceedings will address the money owed to the owners of L Bonds, but the company has already warned that investors may see investments “reflect a discounted value, or the value as zero.” Also, it is probably that investors will lose substantial principal.

Accordingly, a more effective alternative may be to pursue restitution or damages from the broker-dealers who sold investors the L Bonds.

Investors may choose to file a claim with the Financial Industry Regulatory Authority (FINRA), a government-authorized not-for-profit organization that oversees U.S. broker-dealers. FINRA provides investors with an opportunity to resolve their claim through an arbitration proceeding which is much more efficient (less involved and faster to complete) than court litigation.

If you invested with GWG, it’s possible that you can recover some, if not all, of your investment, but the time to act is now. Call the Silver Law Group. We are an experienced law team that specializes in investment fraud litigation—to help clients like you get the recovery you deserve. For a free, confidential consultation, send us an email or call us today at (800) 975-4345.