Investor Alert: International Assets Advisory Customers may have recovery options
The White Law Group is investigating potential securities claims involving International Assets Advisory and the liability it may have for recommending GWG L Bonds to investors.
The White Law Group is currently representing many investors in claims against their broker age firms who are seeking to recover damages from financial losses involving GWG L Bonds. To learn about one of our recent claims, please see: FINRA Lawsuit filed against Emerson Equity LLC involving $2.5 Million in GWG Bonds.
Bad news continues to pile up for investors of GWG Holdings Inc., and GWG L bondholders. On April 20, 2022 GWG Holdings Inc. and its subsidiaries, GWG Life, LLC and GWG Life USA, LLC, have filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the Southern District of Texas as part of a restructuring process.
GWG is reportedly blaming the SEC and its investigation of the sales practice of some of the 145 broker-dealer firms that sold the bonds for the bankruptcy, according to SEC filings. GWG claims the investigation of these firms harmed GWG’s reputation in the marketplace and prevented it from raising additional capital through sales of GWG L Bonds.
GWG defaulted on $13.6 million in payments in January to bondholders, as we previously reported. The company sent out a notice to investors that it would take at least three to six weeks for the company to identify and consider alternatives. Then, in February 2022, GWG officially defaulted on its obligations and announced to investors that it would not be making any interest or maturity payments or accept redemption requests. It provided no timeline for when it might renew any payments or redemptions.
By April 1, 2022, GWG had failed to timely file its annual report with the SEC, marking the third time in the prior four years that GWG had failed to timely file an annual report. GWG claims that the failure was due to the resignation of the independent auditor, Grant Thornton, who resigned in December 2021; Grant Thornton had been GWG’s fourth independent auditor since August 2019.
To learn more, please see: GWG Holdings Files Chapter 11 Bankruptcy Protection after Missing Interest Payments to Investors.
International Assets Advisory sold GWG L Bonds
International Assets Advisory is a dually registered broker-dealer headquartered in Orlando, FL. The firm is just one of the many broker dealers who sold the high risk L Bonds to investors.
Broker dealers have a responsibility to their clients to perform due diligence on any investment they recommend. They must ensure that each investment is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.
If a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be liable for investment losses through FINRA arbitration.
GWG was “Over-Leveraged”
According to the GWG L Bond prospectus, “An investment in the L Bonds involves significant risks, including the risk of losing your entire investment, and may be considered speculative.”
An L bond is an alternative investment vehicle that attempts to provide a high yield for a lender in exchange for bearing the risk that an insurance policy premium or benefits may not be paid.
“GWG was over-leveraged with reasonably expensive money,” and the life settlement business wasn’t “profitable enough to overcome the cost of the debt or the preferred stock dividends and operations,” according to a report in Investment News Last week.
International Assets Advisory and GWG L Bonds: Help for Investors
If you suffered losses investing in GWG L Bonds with International Assets Advisory and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at (888) 637-5510 for a free consultation.
These claims are distinct from the class action filed directly against GWG Holding Inc. and could be pursued concurrently.
The Financial Industry Regulatory Authority (FINRA) operates the largest securities dispute resolution forum in the United States, and has extensive experience in providing a fair, efficient and effective venue to handle a securities-related dispute.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. The firm represents investors in FINRA arbitration claims throughout the country.
To learn more about the firm’s representation of investors, please visit www.whitesecuritieslaw.com.