GWG L Bonds

GWG Holdings, Inc. is a financial services company that specializes in the alternative asset management industry, specifically focusing on the life insurance secondary market. GWG Holdings L Bonds were a series of high-yield bonds backed by life settlements that were issued by GWG Holdings. GWG Holdings took the money collected from bond investors and purchased life insurance policies, then repaid investors from the policy payouts when people died.

The GWG L Bonds were high risk, illiquid, non-conventional, speculative, and suitable only for investors with financial resources large enough to absorb substantial potential losses.

After a GWG Holdings SEC investigation, according to an SEC press release, despite GWG Holdings stating that the L Bonds were high risk, some brokers “Sold L Bonds to retail customers, many of whom were on fixed incomes and had moderate risk tolerances.” The SEC further states that these brokers, “Did not exercise reasonable diligence, care, and skill to understand the risks, rewards, and costs associated with L Bonds…they recommended L Bonds…without a reasonable basis to believe the bonds were in their customers’ best interests.”

What can you do if you are a victim of GWG L Bonds investment fraud?

Many, many brokers may have been responsible for involving their customers in what amounted to an alleged Ponzi scheme. And because brokerage firms are responsible for what their brokers do according to FINRA rules, brokerage firms, along with the brokers who suggested participation in GWG Holdings L Bonds to their customers, could be held liable for those customers’ losses.

You, as an investor, have rights and duties owed to you by your broker. If you sustained losses due to investing in GWG Holdings L Bonds, you may be able to pursue legal remedies against the broker for damages. If you believe that an investment broker has caused you losses, contact a qualified investment fraud attorney to review your account as soon as possible for legal guidance.