Silver Law Group Wins FINRA Arbitration For GWG L-Bonds Investors

Silver Law Group successfully represented the plaintiffs in a FINRA arbitration claim to recover losses from GWG L-Bonds investments. The claim alleged that Boston-based broker-dealer Ages Financial Services did not fully inform the investors of the risks of the L-Bonds. A panel of arbitrators awarded our clients $246,000.

In their decision, the FINRA arbitration panel stated that Ages did not inform our clients about the risks of GWG L Bonds or discuss alternatives and “The investments were not discussed in terms of quantitative suitability in relation to [the clients’] overall portfolios.”  The arbitrators noted in the award that the L-Bonds were “inappropriate.”

Following the decision, Scott Silver, Silver Law Group’s founder and managing partner, stated, “We appreciate that the arbitration panel reached the same conclusion that we had, that GWG was a complex alternative investment that wasn’t suitable for a Mom-and-Pop investor who was retired or seeking a low-risk investment. GWG’s own marketing materials highlighted the risky nature of the business, and that was ignored by the handful of broker-dealers that put the product on their platform.”

Ages began selling GWG Holdings’ L-Bonds in 2012 to investors. The company made regular payments to the investors until 2019. It is now in bankruptcy.

Another claim in Southern California in September saw a broker and broker-dealer lose their arbitration of just over $1 million in damages. The claimant’s attorney stated that the broker recommended that the client put everything into L-Bonds. The claimant bought the bonds with his savings, $1 million in cash. He received compensatory damages totaling $1,035,000, including interest. It appears to be the largest award in fallout of L-Bonds so far.

Silver Law Group has recovered millions of dollars for GWG investors.  However, time is of the essence. Investors do not need to wait for the GWG bankruptcy to conclude which is expected to take a long period of time and will not result in a substantial recovery for investors.

Did You Buy GWG L-Bonds From Ages Financial Services?  

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today at (800) 975-4345 and let us know how we can help.