Broker Fraud Law Firm Bringing Claims for GWG L bond Investors
GWG Bankruptcy Update: Soreide Law Group (1-888-760-6552) is offering legal assistance to individuals who lost money in GWG L bonds Nationwide
Pompano Beach, United States - May 17, 2023 —
Florida securities arbitration law firm Soreide Law Group is investigating potential claims against brokers and brokerage firms that recommended investments in L Bonds offered by GWG Holdings, Inc. On April 20, 2022, GWG Holdings, Inc. filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of Texas. The bankruptcy filing triggered or may trigger repayment obligations, including $1.627 billion in GWG L Bonds. As a result of the Chapter 11 bankruptcy filing, the payment obligations are stayed, which means that GWG L Bond investors will not receive any principal or interest payments until GWG Holdings, Inc. restructured its debt obligations and the court approves the distributions. Chapter 11 Bankruptcy cases can take anywhere from 17 months to five years for larger and more complex cases.
Recently the Court has asked GWG L bond holders to vote on their restructuring plan. The recommended vote of "approve" could potentially net GWG L bond holders as little as 9% of the principal of their original investment. This is why the securities lawyers at Soreide Law Group strongly recommend that investors consider filing an action through the Financial Industry Regulatory Authority or "FINRA" against the financial advisors that recommended the GWG bonds or GWG related investments. The securities attorney's at Soreide Law's investigation has revealed that finacial advisors in many cases never told their customers the following:
a. L bond were high risk, illiquid and only suitable for customers with substantial financial resources.
b. In 2018 and 2019, GWG consummated a series of transactions with Beneficient that resulted in a significant reorientation of its business. Beneficient’s management gained control over GWG, Beneficient became a wholly-owned subsidiary of GWG, and GWG’s business model changed. Specifically, GWG stopped acquiring life insurance policies and focused instead on Beneficient’s still developing business model.
c. No market for L bonds exists.
d. L bonds are not rated by any rating agency.
e. GWG has a history of net losses and for the year ending December 31, 2019, GWG posted a net loss from operations of $79.6 million and negative operating cash flow of $142.8 million.
f. GWG uses the sale of L bonds to fund their own operations.
g. GWG had multiple missed filing and reporting deadlines with the SEC.
h. It is alleged that GWG was paying off old investors with new investor money.
The team can help initiate the FINRA arbitration process, a forum where Soreide Law securities lawyers have been successful in recovering full or partial funding in over 90% of the cases handled by Soreide Law. Investors are likely not going to be made whole through the bankruptcy process and need to bring a FINRA action to recover their lost investment proceeds.
To date the securities lawyers at Soreide Law have filed FINRA arbitrations for GWG L bond sales against Western International Securities, Newbridge Securities, Coastal Equities, Ausdal Financial Partners, Emmerson Equity, IFP Securities and IFP Advisors to name a few. The FINRA arbitrations are not group cases or class actions. The customers individual interests are represented and each case takes between 9 to 14 months to get to a resolution. Soreide Law Group can help determine if the details of the case qualify for FINRA arbitration.
Lars Soreide, Esq., head of the firm, has spent 15 years bringing cases before FINRA, and in that time he has been able to recover tens of millions of dollars for his clients. Soreide Law handles FINRA arbitrations nationwide and only get's compensated out of the successful settlement proceeds or award proceeds.
Soreide Law has over 70 5 star google reviews going back to 2009. One former client stated, “Our experience with Lars Soreide was very satisfying. He is a very sincere and dedicated lawyer. He did an excellent job in representing us in front of the arbitrator. We recovered 100% of the funds that we invested with the stockbroker. We highly recommend him.”
Soreide Law Group is one of the most trusted and successful securities law firms in the country;
Call 1-888-760-6552 for a free, no-obligation consultation. Zoom consultations are also available, and can be scheduled on the Soreide Law Group website.
To read more or to contact their legal team, visit https://www.securitieslawyer.com
For more, visit https://www.securitieslawyer.com
Name: Lars Soreide
Email: Send Email
Organization: Soreide Law Group
Address: 2401 East Atlantic Boulevard Suite 305, Pompano Beach, Florida 33062, United States
Release ID: 89097852
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