Investors concerned about GWG Holdings Inc due to SEC actions

GWG Holdings Inc.

Investors should contact the national investment fraud law firm, Haselkorn & Thibaut ( to help recover losses from GWG Holdings.

PALM BEACH, Florida, USA, June 24, 2022 / — The SEC filed a lawsuit against Western International Securities and five of its brokers last week. (Central District of California, Case # 2:22-cv-04119) for violating BI regulations (the company’s interest obligations to investors when recommending GWG Holdings Inc investments to its clients) .

GWG Holdings Inc. (NASDAQ: GWGH), also known as GWG, has filed for Chapter 11 bankruptcy protection with the United States Bankruptcy Court for the Southern District of Texas (Folder 22 -90032). The company’s total liabilities were estimated to be around $2.1 billion. Recent declines in the value of various equity and bond investments issued as well as impending bankruptcy could be devastating to GWG investors who have sold (or may still hold) various bonds, preferred stock or common stock previously issued by GWG . , as it could mean that they have suffered or will suffer investment losses due to the decline in value of these securities.

Although there were earlier rumors and suspicions circulating, one of the troubling signs appeared to some investors when GWG missed principal and interest payments of $3.25 million and $10,000,000. $35 million on the L bond issues when they were due on January 15, 2022. These missed payments highlighted a number of other potential issues at GWG. Currently, many GWG investors are considering possible lawsuits and FINRA arbitration requests as they weigh their options to try to recoup their investment losses.

Matthew Thibaut, Esq., founding partner of Haselkorn & Thibaut (, a national law firm that represents numerous clients in pending claims and investigates those potential claims on behalf of investors, said : “Based on calls we made recently, it appears that certain financial advisors who were marketing GWG-related investments (and GWG L-Bonds in particular) to investor clients who were looking for safe and conservative investments” and those clients had little or no appreciation for the level of risk they were actually incurring with these investments.

Haselkorn & Thibaut, PA has established a GWG Investor Hotline at 1-888-614-9356, where experienced attorneys can answer investor questions during a fast, free, and friendly preliminary case evaluation call. , and investors can then decide among their options on how best to proceed with the resolution of losses they have incurred in their GWG investments.

Following the missing payments in early 2022, many financial advisers were understandably inundated with calls from clients expressing concerns and seeking answers. Unfortunately, rather than accurately portraying the current situation, many financial advisers initially attempted to downplay GWG’s problems, with some attempting to characterize the missed payment on the bonds as an isolated one-time situation that would only affect bondholders. of L bonds and pointing out that there was an alleged grace period of 30 days for payment after its maturity, and that even if the missed payment was considered a default, investors should not worry because it could yet to be addressed and possibly corrected in the near future. This information turned out to be inaccurate on several levels.

As time passed and the grace period expired, investors’ fears materialized with additional negative news and, most recently, GWG’s filing for bankruptcy. The impact of the bankruptcy filing on GWG’s investors remains uncertain and will likely remain so for some time. At first glance, it appears that investors in GWG L bonds (as well as stocks) are likely to see potential investment losses. Additionally, common and preferred stockholders of GWG should also be affected, given that they are actually lower on the scale in the event of bankruptcy than bondholders.

GWG’s bankruptcy filing confirmed what were (until then) rumors that the company had impending cash flow and other related financial issues. Curiously, GWG seems to have suggested that some of the alleged blame for its problems leading to bankruptcy could be attributed to expenses related to recent SEC investigations into its sales methods used in marketing its various titles. This is a somewhat odd explanation, as either GWG had done nothing wrong and such issues with regulators would simply need to run their course as they often do with other publicly traded entities. Alternatively, if GWG was in fact not complying with applicable laws, rules and regulations, could this explanation imply that they believe GWG should have had the right to continue such violations? Although the answer is still unknown, most investors seem more concerned with taking action to reduce their financial losses, rather than trying to better understand GWG’s explanations or trying to understand the blame game.

According to documents filed by GWG with the Securities and Exchange Commission (SEC) on January 18, a decline in the amount of sales of its L bonds caused a shortage of capital, leading to a shortage of liquidity. GWG Holdings Inc. also said at the time that the timely filing of the Form 10-K annual report was in jeopardy since the engagement accounting firm chose not to continue to provide these services. These factors (at the time) did not appear to reflect a situation where a 30-day grace period was sufficient, which calls into question the credibility and level of research conducted by any financial advisor who downplayed such events. The circumstances as a whole do not appear to support such a conclusion, even based on the limited information available at the time.

Many investors are now experiencing the financial impact of not only missing interest payments, but also the possibility of losing their investment principle as a result of the bankruptcy filing and related financial issues within GWG. Some investors have already chosen to act and find that a securities arbitration claim against the financial adviser and/or the company that sold them the investments appears to be a way to recoup investment losses. In many cases, this path appears to be the easiest, least expensive, most efficient, and most direct option to follow. The Financial Regulatory Authority (FINRA) has a Dispute Resolution Office that handles these types of complaints. Although not the only option available, it may make sense to some investors.

FINRA’s arbitration process limits discovery to document exchanges and generally does not involve witness depositions. As such, investors often seek to rely on experienced attorneys who have experience handling these specific types of claims, as it is crucial for investors to know what documents are needed to effectively establish at both liability and damages in such claims. Additionally, with the assistance of experienced attorneys, a review of the appropriate documents could also assist investors in such claims to the extent that the investments were recommended to investors based on a negligent due diligence effort, d a negligent supervisory effort or based on other sales practice concerns related to the manner in which the investment was sold by the company and presented to the investor by the financial advisor.

If you have information about GWG investments that have been recommended by brokers or financial advisors, please contact Haselkorn & Thibaut, PA at 1-888-614-9356. Also, if you have questions about your legal rights, or if you have purchased or acquired GWG stock or bonds and have questions, please call now for a free consultation.

The sole purpose of this press release is to investigate how various FINRA brokerage firms and registered investment advisory firms investigated, marketed and sold GWG investment products and investment strategies which included various investments GWG. this survey further includes, but is not limited to, these companies’ approvals for the sale of these investments to investor clients, as well as how these investments have been presented to individual investors, including reviews of new products by brokers, due diligence and sales practices and supervision related to these investment products and the investment strategies including these products.

Haselkorn & Thibaut, PA is a law firm focused on investment fraud cases and FINRA securities arbitration claims nationwide. The law firm has offices and is available by appointment in Palm Beach, Florida, Park Avenue in New York, Phoenix, Arizona, Houston, Texas and Cary, North Carolina. The law firm is an experienced group of attorneys and paralegals, with attorneys having a combined legal experience of over 50 years in handling these particular types of claims. They represent both individual and institutional investors who want to aggressively pursue their claims and get the best possible return from their investment losses.

Matthew Thibault
Haselkorn & Thibaut, Pennsylvania
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