DALLAS--(BUSINESS WIRE)--The Frankowski Firm is accepting new clients in securities arbitration claims before the Financial Industry Regulatory Authority (FINRA) for losses sustained from GWG Holdings L Bonds, after the alternative asset manager filed for bankruptcy. GWG Holdings sold the speculative and high-risk L Bonds, which pooled money from bond investors to purchase life-insurance policies on the secondary market, with the intention of using the payouts to pay the bonds when the life insurance policy holders died.
The Frankowski Firm contends that brokerages who recommended and sold the L Bonds to investors without disclosing their high risk are potentially liable. Many L Bond investors were retired and elderly, and many invested their life savings.
Richard Frankowski, attorney and founder of The Frankowski Firm, said: “Anyone who bought GWG Holdings L Bonds without being warned of their very high risk should talk to an attorney as soon as possible. GWG entered chapter 11 bankruptcy, but not after raising nearly $2 billion mostly from individual investors. We're here to stand up for those investors and make sure each brokerage who sold this investment product is held accountable.”
In October 2020, the SEC opened an investigation into GWG Holdings regarding its accounting and its issuance of L Bonds. The SEC subpoenaed documents related to brokerage firms that were selling the L Bonds, investigating sales practices related to the Bonds. GWG reports that L Bonds were typically sold by a seller network made up of approximately 145 brokerage firms. Among the firms believed to be in the GWG network selling L Bonds are:
- Cabot Lodge Securities
- Capital Investment Group
- Centaurus Financial
- Coastal Equities
- Emerson Equity
- Landolt Securities
- Lion Street Financial (Stiba Wealth Management)
- National Securities
- Ni Advisors
- SW Financial
- Westpark Capital
GWG Holdings filed for bankruptcy on April 20, 2022. GWG Holdings had suspended sales of L Bonds for eight months due to the delayed filing of its 2020 annual report but resumed again in December. The company had to pause selling L Bonds again in January 2021 as it began working with restructuring advisers, and because its auditor had resigned.
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The Frankowski Firm represents clients throughout the country in FINRA securities arbitrations. Our track record of success includes winning claims against Charles Schwab, Edward Jones, MetLife Securities, Morgan Stanley, Prudential Securities, Raymond James, Regions Morgan Keegan, and other investment firms as well as individual brokers. Schedule an appointment by contacting us now at 888-741-7503 or by completing our contact form.