September 1, 2021 Comments Off on GWG Holdings: SEC Investigation & Possible Delisting Raises Questions for Investors  Blog, Current Investigations, Securities Fraud

GWG Holdings: SEC Investigation & Possible Delisting Raises Questions for Investors 

GWG Holdings, Inc. Securities Investigation, featured by Top Securities Fraud Attorneys at The White Law Group

What’s going on with GWG Holdings (GWGH)? *UPDATED* November 9, 2021

The White Law Group continues to investigate GWG Holdings Inc. and the liability that brokerage firms may have for unsuitably recommending GWG offerings to investors. If you are concerned about your investment with GWG Holdings, you may be able to file a complaint against your brokerage firm. 

GWG Holdings finances its portfolio of life insurance assets through the sale of alternative investment products, such as debentures and L-bonds, according to its website. Although these products are touted as offering potentially higher yields than other investment assets that are correlated with the traditional stock and bond markets, they may come at a much greater risk to investors. 

GWGH Possible Nasdaq Delisting 

GWG Holdings announced on September 7, that it has “successfully appealed a notice of delisting” by the Nasdaq Stock Market, but according to a Form 10-K filed on November 5, it may not be enough. The company was required to file current financial statements through June 30, 2021 by October 31, 2021, and hold its 2020/2021 annual meeting by December 31, 2021. 

But according to the 10-K, the company has not yet filed all of the reports that were requested. Further, it notes that if it is “unable to regain compliance with Nasdaq’s filing requirements for continued listing, we expect GWG Holdings to be delisted, in which case our business and the value of our securities would likely be materially and adversely impacted.” GWG noted it has “not yet received notice from Nasdaq regarding delisting.” 

Troubling News for GWG investors 

In the filing on Nov. 5, GWG warns, “the potential NASDAQ delisting, in combination with significant recurring losses from operations, negative cash flows from operations, delays in executing our business plans, and any potential negative outcome from the ongoing SEC investigation discussed elsewhere in this Form 10-K, raise substantial doubt about our ability to continue as a going concern.” 

GWG L bonds Sales Suspended 

The company notes that its success relies “heavily” on debt financing through the sale of L Bonds to raise sufficient capital to meet its obligations. The offering of GWG Holdings’ L Bonds has been suspended since April 16, 2021, as a result of the delay in filing certain periodic reports with the SEC, including this 2020 Form 10-K. 

SEC Investigates GWG Holdings 

The company received a subpoena on October 6, 2020, to produce documents from the Chicago office of the SEC’s Division of Enforcement, informing the Company of the existence of a non-public, fact-finding investigation into GWG Holdings.  

Since the initial subpoena, GWG has reportedly received subsequent subpoenas from the SEC for additional information. The requested information from the SEC has primarily related to GWG Holdings’ investment products, including its L Bonds, as well as various accounting matters.  The company says it is “cooperating fully with the SEC in connection with its investigation.” 

Filing a Complaint against your Brokerage Firm  

The White Law Group Continues to investigate potential securities claims involving GWG offerings. 

Brokers are required to perform adequate due diligence on any investment to determine if such investment is suitable for each individual client. Investment recommendations should be in line with the client’s age, investment experience, net worth, risk tolerance, investment objectives, and income.  

When a broker overlooks suitability requirements or misleads a client, not only are they potentially liable for investment loss, the brokerage firm that employs such brokers may also be on the hook for losses.  

Filing a Complaint against your Brokerage Firm  

If you invested in debentures or bonds issued by GWG Holdings Inc. and would like to discuss your litigation options with securities attorneys, please call The White Law Group at 888-637-5510 for a free consultation.  

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington.  

For more information on The White Law Group, visit https://www.whitesecuritieslaw.com 

   

 

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