Backed into a Collapsing Corner, GWG Holdings Goes Silent, Leaving Investors On the Hook

Attorney Advising Disclaimer

GWG Holdings has gone silent after failing to make bond payments, leaving customers in financially harmful limbo after brokerage firms such as Emerson Equity (San Mateo, CA) repeatedly pushed risky GWG products such as GWG-L Bonds on its clientele.

GWG's prolonged silence is deafening, as GWG has communicated with investors just one time in February, and issued no letters to consumers since mid-February and the deadline imposed by the SEC for GWG to either resume some semblance of interest and principal payments plus dividends to investors or enter default.

Regulators set the ultimatum—technically a 30-day grace period—in January after GWG missed making $13.6 million in interest and principal payments for its L Bond series that month. GWG Holdings, Inc.'s immediate response was to halt L Bond sales and write, very succinctly, "The sale of L Bonds is paused."

According to its SEC prospectus filing, "in the event of any default on the L Bonds...the holders of the L Bonds...would share in payment or collateral in proportion to the amount of principal and interest owed on each such debt instrument."

Furthermore, the document directly warned that in the event of default, GWG would be prohibited from making any payments to investors.

Given these warnings, brokers and investment advisers alike who unsuitably sold GWG Holdings L Bonds to retail customers may be on the hook for suitability violations, as would their employing firms for failing to supervise their representative and/or their transactions and securities business activity. The Law Offices of Jonathan W. Evans & Associates [(800) 699-1881] can assist you in determining whether your broker and/or their firm committed misconduct that resulted in losses and, if so, can help you recover these damages through FINRA's dispute resolution process.

GWG published a letter to investors on February 14, 2022 regarding its missed sales, interest, maturity, dividend, and redemption payments, telling investors cryptically that GWG is working with financial and legal advisors and will continue not to make payments.

When GWGH began its NASDAQ descent in early February, Investorplace described the problem thusly: "GWG (NASDAQ: GWGH) shares are decreasing over 12% on no clear news this morning."

If you invested with a broker or financial adviser who recommended purchasing GWG Holdings L Bonds, and this recommendation to purchase a complex, costly, and risky product was unsuitable given your investment objectives and risk tolerance preferences, 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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