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Over $1mm Awarded for GWG L Bond Investor – Investors Encouraged to File FINRA Arbitration Claims

Recent arbitration cases brought before Financial Industry Regulatory Authority (FINRA) have resulted in significant awards for investors who suffered losses in GWG L Bonds. In one instance (FINRA Case No. 22-01360), an award exceeding $1 million in compensatory damages was granted to compensate the investor for his losses. Another arbitration case (FINRA Case No. 22-01908) yielded over $280,000 in damages for an investor whose financial advisor inadequately disclosed the risks associated with GWG.

GWG L bonds were initially presented by numerous brokerage firms and financial advisors as safe, low-risk investments. However, contrary to these representations, they turned out to be illiquid, high-risk, and speculative. The situation worsened when GWG Holdings, Inc. filed for bankruptcy in April 2022, suspending monthly dividends and depriving investors of access to their principal.

In June 2023, the bankruptcy court authorized GWG’s sale of its primary asset: equity interest in Beneficient (NASDAQ: BENF). Unfortunately, since its debut at $15, BENF’s value has dropped to less than $1 in value. This downturn has left GWG L bondholders owed over $1.3 billion, with uncertainty over GWG’s ability to obtain funds from its equity interest in BENF.

In August 2023, the GWG L Bonds were terminated, and investors were provided “Interests” in the Wind Down Trust. However, the valuation of these “Interests” and the timeline for the bankruptcy’s resolution remain uncertain.

Investors who purchased GWG L Bonds through specific brokerage firms are urged to promptly contact the Schwartz Law Firm to explore their options for potential recovery. The implicated brokerage firms include:

  • Western International Securities
  • Centaurus Financial
  • Emerson Equity
  • Moloney Securities
  • Ausdal Financial Partners
  • Newbridge Securities
  • Coastal Equities
  • Center Street Securities
  • Arkadios Capital
  • Arete Wealth Management
  • Capital Investment Group
  • Ni Advisors
  • B.B. Graham & Company

GWG L Bond Investors

If you have suffered losses as a result of GWG L Bond investments, we would like to hear from you. If you have questions about your potential claim or need assistance from an investment fraud lawyer, please contact us at 866-618-0545 or email Matthew Schwartz directly at [email protected].

Matthew Schwartz

Matthew Schwartz is a Shareholder at Schwartz, P.A. where he serves as the practice group leader for their securities litigation and professional negligence practice group. His practice is focused on plaintiff-side securities arbitration and litigation, representing individual investors and institutions in claims against brokerage firms, investment advisors, commodities firms, hedge funds and others. He also represents plaintiffs who have been damaged by their insurance agents, lawyers, accountants and other professionals. He is an accomplished commercial litigator who has handled a variety of business disputes and other consumer claims.

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