National investment loss lawyers Iorio Altamirano LLP continue to investigate broker-dealers that sold GWG L Bonds to retail investors. If you suffered losses in the GWG L Bonds, call the firm immediately at (855) 430-4010.

Iorio Altamirano LLP represents dozens of GWG L Bond investors across the country and encourages investors who are taking a “wait and see approach” to act now. In light of recent developments in the GWG bankruptcy proceeding and FINRA Arbitration wins for GWG L Bond investors, there is no reason for anyone with meritorious claims to wait to initiate a FINRA arbitration proceeding.

Iorio Altamirano LLP was at the forefront of the investigation into the GWG L Bonds starting in late 2021 and has already helped investors recover $1.5 million in losses.

Based on the law firm’s investigation, there appears to have been insufficient and inadequate due diligence and training performed by brokerage firms that sold the GWG L Bonds, leading to widespread negligence and misconduct. Many broker-dealers also failed to understand the risks involving GWG Holdings, Inc. and the GWG L Bonds and failed to supervise their brokers.

GWG Bankruptcy – What’s true and what’s false?

GWG Holdings filed for Chapter 11 bankruptcy on April 20, 2022 (4:2022-bk-90032).

Over the past year, investors have received information from many broker-dealers concerning their prospects for recovery through the GWG Bankruptcy proceeding. The information given to investors depicts a false picture that they will either be made whole or receive at least half of their investment. Iorio Altamirano LLP believes this is false and that a potential recovery through the bankruptcy proceeding, if any, will be significantly lower.

Any future recovery for GWG L Bondholders relies heavily on GWG’s ability to monetize its equity interest in BENF. BENF stock price hit a 52-week low of $0.47 on November 14, 2023. BENF risks being delisted from Nasdaq if it trades below $1 for 30 days.

Over the past couple of weeks, it has become evident that the GWG L Bonds are likely worthless or have nominal value. The GWG Wind Down Trust has liquidated two of its four assets, the portfolio of life insurance policies and its equity interest in FOXO, for a mere $10.5 million. That’s 0.8% of the $1.3 billion owed to L Bondholders. However, most of that cash may not make it to L Bondholders.

The third asset the GWG Wind Down Trust holds is its equity interest in BENF, which, as discussed above, appears to have nominal value. BENF closed at $0.525 per share on November 20, 2023, on a very thinly traded market. There is no foreseeable path to substantial monetization for the GWG Wind Down Trust.

Finally, monetizing the fourth asset held by the GWG Wind Down Trust, its “retained causes of action” against entities such as BENF and other entities and individuals, is even more speculative, given BENF's poor financial condition.

Broker-Dealers That Sold GWG L Bonds

GWG sold the L Bonds through Emerson Equity LLC and a broker-dealer network, which pitched the products to individual retail investors. The broker-dealers who sold L Bonds and shared in the selling commissions included the below firms and other broker-dealers. The securities arbitration law firm Iorio Altamirano LLP is interested in speaking with customers of these firms.

• Centaurus Financial, Inc.
• Western International Securities, Inc.
• Center Street Securities.
• Moloney Securities.
• Ages Financial Services, LTD.
• Great Point Capital LLC.
• National Securities Corporation.
• Aegis Capital, LLC.
• Dempsey Lord Smith, LLC.
• Coastal Equities, Inc.
• International Assets Advisory, LLC.
• Arete Wealth Management, LLC.
• Capital Investment Group, Inc.
• Lifemark Securities, Corp.
• Westpark Capital, Inc.
• Ausdal Financial Partners, Inc.
• IFP Securities, LLC.
• Cabot Lodge Securities LLC.
• Kingswood Capital Partners, LLC.
• American Trust Investment Services, Inc.

Iorio Altamirano LLP continues to believe that filing individual FINRA arbitration claims offers the best avenue for GWG L Bondholders to obtain a meaningful recovery of their losses.

Iorio Altamirano LLP is a leading securities arbitration law firm representing GWG L Bond investors nationwide in arbitration cases against broker-dealers.

What Investors Can Do

GWG L Bond investors should contact the experienced GWG Holdings L Bonds attorneys at Iorio Altamirano LLP to review their legal options. The firm will review any potential claims at no cost. Customers may be entitled to compensation without paying any out-of-pocket fees or costs through a contingency fee arrangement with securities arbitration law firm Iorio Altamirano LLP. To set up an evaluation, email attorneys August Iorio at august@ia-law.com or Jorge Altamirano at jorge@ia-law.com. Alternatively, call the firm toll-free at (855) 430-4010.

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