April 26, 2022 Comments Off on Westpark Capital Investment Fraud Lawsuits: GWG L Bond Investors may have Claims  Blog, Current Investigations, Securities Fraud

Westpark Capital Investment Fraud Lawsuits: GWG L Bond Investors may have Claims 

Westpark Capital Investment Fraud Lawsuits: GWG L Bond Investors may have Claims, featured by top securities fraud attorneys, the White Law Group

Did your Westpark Capital broker recommend investing in GWG L Bonds?   

Have you suffered financial losses involving GWG L Bonds with Westpark Capital? If so, the investment fraud attorneys at the White Law Group may be able to help you by filing a FINRA Dispute Resolution claim.   

The White Law Group is investigating potential securities claims involving Westpark Capital and the liability it may have for improperly recommending GWG L Bonds to investors.  

On April 20, 2022, GWG Holdings Inc., sponsor of GWG L Bonds, filed for Chapter 11 bankruptcy protection after months of uncertainty and disappointment for investors.   As we previously reported, GWG failed to make $13.6 million in payments to its bondholders in January of 2022.  GWG 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, the company 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. The company 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. 

GWG 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, according to a press release.  

GWG reportedly blames the Securities and Exchange Commission for its recent financial troubles, claiming that by investigating the sales practice of some of the 145 broker-dealer firms that sold the bonds, it harmed GWG’s reputation in the marketplace and prevented it from raising more capital through GWG L bond sales.   

To learn more, please see: GWG Holdings Files Chapter 11 Bankruptcy Protection after Missing Interest Payments to Investors.   

Westpark Capital Investor Lawsuits involving GWG L Bonds   

Broker dealers are required to perform adequate due diligence on all investment recommendations they make. 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 

Westpark Capital, a full-service investment banking and securities brokerage firm, provides services to both private and public companies worldwide, as well as individual and institutional investors, according to its website.  

Westpark Capital is one of many regional broker-dealers who sold the high-risk L Bonds to investors. If you suffered losses investing in GWG L Bonds with Westpark Capital 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.   

 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.   

These claims are distinct from the class action filed directly against GWG Holdings and could be pursued concurrently.   

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 about our recent FINRA claim involving GWG L Bonds please see:
FINRA Lawsuit filed against Emerson Equity LLC involving $2.5 Million in GWG Bonds   

  

 

 

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