GWG Sanctioned by NASDAQ As More Brokerage Sellers Appear

Attorney Advising Disclaimer

As if things couldn't get worse for GWG Holdings—the firm whose doomed L Bonds sent GWG toward bankruptcy leaving GWG investors on the precipice of massive losses—NASDAQ has now sanctioned GWG for failing to file its annual Form 10-K report and threatened to pull GWGH from the stock market entirely. GWGH, for what it's worth, has already fallen to nearly 20% of its value from 2021.

To those who followed the GWG Holdings saga, GWG's failure to file a required form on time is hardly surprisingly given its track record of untimely or even missing reports, but what remains startling is that despite GWG's track record of disclosure failures and other costly disorganization, brokers and investment advisers still sold GWG Holdings L Bonds to investors.

GWG's initial prospectus filing with the SEC warned the unsuitably risky and complex product would be unsuitable for many investors, cautioning investors as to its lack of liquidity and speculative nature "including the risk of losing your entire investment."

All of these disclosures and warnings indicate that firms and brokers may be liable for damages and losses in GWG L Bonds and GWGH if they recommended and sold GWG to clients whose investor profiles indicated a conservative profile or moderate level of risk tolerance.

Nonetheless, the list of brokerage firms that unsuitably sold the San Mateo, California-based GWG Holdings L Bond and stock products to investors continues to grow.

GWG's closest seller, Emerson Equity, likely pushed L Bonds more than any other firm, but as the weeks roll by, names of additional advisers and broker-dealers continue to appear. These include:

> Allied Beacon Partners (FINRA disciplined Jeffrey Board for unsuitable GWG sales to an elderly client);

> Moloney Securities (FINRA sanctioned broker Candice Montie in 2021 over GWG L Bond sales);

> Strategic Financial Partners (FINRA disciplined David Escarcega for fraudulent misrepresentation to elderly clients).

Other firms whose names have surfaced in GWG Holdings-related conversations include Arete Wealth Management, Barouti Financial, Centaurus Financial, Center Street Securities, and Newbridge Securities.

GWG Holdings' SEC filings mention other financial institutions as facilitators of GWG accounts, such as Wells Fargo, at which GWG DLP Funding (DLP IV) maintained a collection account.

If you invested with a broker or investment adviser at one of the aforementioned firms or any other broker-dealer and have suffered losses as a result of recommendations and sales of GWG Holdings L Bonds that were unsuitable given your risk tolerance preferences or investment objectives, please call an experienced FINRA arbitration attorney at The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.

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