GWG L Bonds Worry Investors

GWG Holdings filed Chapter 11 bankruptcy papers in the United States Bankruptcy Court of Texas, April 20, 2022. Although the bankruptcy case is not yet resolved, there are still uncertainties. GWG Holdings L Bond holders. These are some of the things you should be paying attention to. The company is now able to resume selling L Bonds. However, a bankruptcy filing can be a big red flag.

GWG Holdings declared bankruptcy in order to avoid defaulting on its financial obligations. The auditor of the company had resigned in 2021. GWG Holdings transferred $350M to the Beneficient Company Group. This group issued 366 Million in L Bonds. The company was quickly faced with liquidity problems. As collateral for its debt obligations the company pledged the security interests on all its life insurance policies. This caused a dramatic drop in sales. In January 2022, the company stopped selling L Bonds.

It has been accused of misleading investors by making false claims about its products. GWG Life and Life Epigenetics are its two subsidiaries. These companies continue to deceive investors by promising the world as of May 2018. GWG Holdings, Inc. NASDAQ-listed firmThe parent company of both is and The company has a range of life insurance policies, and has also developed new technologies. Its principal products include life insurance policy distribution and financial services product exchange.

GWG Holdings Inc. previously sold high yield bonds via independent contractor broker-dealers for individual investors. These securities were risky and illiquid, so they weren’t suitable for everyone. GWG also has Lender-Managing Broker-Dealer. BondsThe company mainly sold private placements. This investment was not without risks. Make sure to thoroughly research GWG’s L Bonds if you are considering investing.

Before you purchase or sell GWG Holdings Inc. L Bonds, a good investment lawyer will review the risks. These investments are often high-risk and can pay high returns. If you are unsure whether to invest in them, consult an attorney who specializes on investment fraud. If you are a victim to this type of investment fraud, you may be eligible for compensation. This article will provide more information about GWG Holdings L Bonds.

GWG L Bonds are not without risk. The ongoing SEC investigation into GWG Holdings Inc. sales practices is another. Subpoenas have been issued to individual brokerage firms by the SECIn late 2021. GWG L Bonds owners should seek legal counsel immediately before the case goes to trial. Investors who are eligible for a claim can get free consultations from Iorio Altamirano LLP.

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