Troubled GWG Holdings Finally Files for Bankruptcy, Sealing Many Investors' Losing Fates

Attorney Advising Disclaimer

After months of missed payments to clients, suspension of L Bond sales, and warnings from unhappy regulators, GWG Holdings filed for bankruptcy in Texas, calling the move a restructuring process. GWG Life USA was listed as a subsidiary on GWG (NASDAQ: GWGH)'s filing.

GWG's Chapter 11 bankruptcy petition closes the latest chapter of a saga that hinted at financial trouble as early as 2015, when an IPO analysis of GWGH criticized GWG Holdings' life insurance insurance policy buying model, in which GWG essentially bet on elderly life insurance policy holders to "die on time," as a troubled product to avoid.

Over the years, GWG and GWG Holding L Bonds have been deemed "complex, costly, and risky," borrowing on language used by the North American Securities Administrators Association (NASAA).

Despite these red flags, brokers and investment advisors at firms such as Allied Beacon Partners, Centaurus Financial, Emerson Equity, and Newbridge Securities—to name a few—continued recommending the often-unsuitable GWG L Bonds and GWGH stock to clients whose conservative-to-moderate risk tolerance preferences and other investment objectives should have suggested that the incredibly risky GWG products were not appropriate investments.

If you invested with a broker or advisor who recommended you purchase the costly, complex, and risky GWG L Bonds or GWGH stock despite risk tolerance or other preferences that should have eliminated GWG from your potential pool of investments, you may be entitled to damages if you experienced losses as a result. Additionally, the affiliated brokerage firm may be liable for failing to supervise its representative, for poor due diligence, inadequate supervisory systems procedures, and/or more potential claims.

If you have experienced losses in GWG Holdings products, such as L Bonds or GWGH shares, please call (800) 699-1881 to consult with an experienced FINRA arbitration attorney at the Law Offices of Jonathan W. Evans & Associates.

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