GWG Holdings Inc. Losses
The White Law Group is investigating potential claims involving GWG Holdings Inc. losses. If you have suffered losses investing in these high risk debentures, the White Law Group may be able to help you.
Debentures are a type of debt vehicle that carries significant risk. Often debentures are sold as unregistered securities pursuant to SEC exemptions laws. In general, unregistered securities are high-risk products that lack liquidity and are not suitable for the majority of investors.
The departures in question, GWG Holdings Inc, purchased life insurance policies sold in the secondary marketplace. GWG Holdings’ objective is to purchase life insurance policies that will potentially pay more when the policy matures than the cost spent to purchase the policy.
According to InvestmentNews, former Phoenix based broker, David Joseph Escarcega was recently expelled from the securities industry for selling such high-risk debentures to retired and elderly clients.
Broker’s that choose to sell high-risk debentures are required to perform adequate due diligence 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.
Update on GWG Holdings, April 5, 2019
According to SEC filings, on April 2, 2019, GWG Holdings, Inc. announced that there would be a delay in the filing of its annual report for 2018. The delay is reportedly due to accounting for certain assets and liabilities related to the reverse merger transaction with The Beneficient Group, L.P. and the completion of an evaluation of fair value on its life insurance policies.
Recovery of Investment Losses
If you have suffered from GWG Holdings Inc. losses and would like to discuss your litigation options with a 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 Franklin, Tennessee.
For more information on The White Law Group, visit www.whitesecuritieslaw.com.