If the insured party lived longer than expected or the insurance firm holding the policy went bankrupt, the value of GWG’s portfolio could decrease, making it impossible for GWG Holdings to continue paying interest to the holders of its L bonds. Investors that lost money buying GWG L Bonds through GWG Holdings are welcome to speak with us. Get yourself to read more brief facts about GWG Holdings below.
Investment Fraud Lawyers can be reached at 1-888-614-9356 for a free and confidential consultation if you or someone you know lost money investing in a GWG L Bond. The following form may also be filled out. In FINRA arbitration proceedings around the nation, our legal firm is the representative of dozens of individual bondholders.
On April 20, 2022, the business announced it was declaring bankruptcy in Texas.
1. The Securities and Exchange Commission has been looking into it at least since 2020 October. In November 2021, roughly a year after getting the initial subpoena, GWG informed investors about the probe. In December 2021, the accountants at GWG quit.
2. GWG Holdings’ corporate structure is convoluted and opaque. Affiliates that did not declare bankruptcy own all of their assets.
3. Starting in 2018, the GWG founders started “investing” investor funds in their own individual company endeavors. Investors were not made aware of these “investments”.
4. GWG Holdings claimed in public filings with the Securities and Exchange Commission that it would have to keep raising new capital in order to be able to pay interest to bondholders. These claims cast considerable doubt on GWG’s ability to conduct legitimate business.
5. GWG L Bonds were neither insured nor were they given a credit rating.
6. Investors may bring a claim against the salesperson who promoted GWG L Bonds. Investors may file a lawsuit to recover lost capital, unpaid interest, and legal costs.