Did your Western International Securities advisor recommend investing in GWG L Bonds?
Have you suffered financial losses investing in GWG L Bonds with Western International Securities If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim against the firm.
Bad news continues to pile up for investors of GWG Holdings Inc., and its L Bonds. On April 20, 2022 GWG Holdings Inc. and its subsidiaries, GWG Life, LLC and GWG Life USA, LLC, filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the Southern District of Texas as part of a restructuring process.
According to an article in Investment News this week, GWG is blaming the Securities and Exchange Commission for questioning the numerous broker-dealers that sold GWG L bonds “for the company’s collapse.” GWG claims in its Chapter 11 filing that the SEC’s investigation of the company eventually included the sales practice of some of the 145 broker-dealer firms that sold the bonds.
According to GWG, the investigation of these firms harmed GWG’s reputation in the marketplace and prevented it from raising more capital through sales of GWG L Bonds.
As we previously reported, GWG defaulted on $13.6 million in interest payments in January to bondholders. To learn more about the investigation, please see: GWG Holdings Files Chapter 11 Bankruptcy Protection after Missing Interest Payments to Investors
The White Law Group is currently representing numerous investors in claims against their broker age firms who are seeking to recover damages from financial losses involving GWG L Bonds. To learn about our most recent claim, please see: FINRA Lawsuit filed against Emerson Equity LLC involving $2.5 Million in GWG Bonds
Western International Securities sold GWG L Bonds to Investors
GWG apparently sold the L bonds through Western International Securities LLC and a network of regional broker-dealers, who sold the offerings to retail investors.
L Bonds are High Risk and GWG was “Over-Leveraged”
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.
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.”
According to the Investment News article, “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.”
Investigating Potential Claims involving Western International Securities and GWG L Bonds
If you suffered losses investing in GWG L Bonds with Western International Securities LLC and would like to discuss your recovery 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.
To learn more about the firm’s investigation and claims involving Western International Securities, please visit:
To learn more about the firm’s investigation of GWG, please visit: