The arbitration complaint was filed on behalf of a GWG L Bond holder from North Carolina.

NEW YORK, NEW YORK, USA, June 7, 2022 /EINPresswire.com/ -- MDF Law announces the filing of a lawsuit against Dempsey Lord Smith concerning the marketing of GWG L Bonds, an investment offered through GWG Holdings, Inc. Dempsey Lord Smith is a Georgia based broker-dealer regulated by the Financial Industry Regulatory Authority. The lawsuit was filed in Charlotte, North Carolina by filing an arbitration complaint with FINRA. The case number is 22-01228. FINRA has already expedited the arbitration based on the investor's age. The investor is suing for lost principal, interest and attorneys' fees under the North Carolina Securities Act. The investor is being represented by attorneys Marc Fitapelli and Jeffrey Saxon of MDF Law.

GWG Holdings is a Texas based company that is currently in bankruptcy. It sold billions of dollars of “L bonds” to retail investors prior to filing for bankruptcy protection. In January 2022, it stopped making interest payments and redemptions to all of its L Bond holders. GWG’s April 20, 2022 bankruptcy filing was proceed with years of bad news. In October 2020, it was served with a subpoena requesting documents and information from the Securities and Exchange Commission. GWG did not disclose the SEC’s subpoena to investors until November 2021. Many retail investors purchased GWG not knowing the company was under investigation by the SEC.

GWG Holdings marketed L Bonds to retail investors nationwide. The investment was sold to elderly people, retirees and others who were seeking a conservative stream of income. The FINRA complaint against Dempsey Lord Smith alleges that it was negligent in approving L Bonds for sale. Firms like Dempsey Lord Smith are required by law to undertake independent due diligence of investments like GWG Holdings. We believe reasonable due diligence could have uncovered serious and material issues with this investment. These issues include, for example, GWG Holding’s complex and obtuse business operation as well as its inability to generate profits. Given these issues, it is not surprising that less than 1% of all broker-dealers nationwide approved L Bonds for sale. We do not believe GWG should have been sold to any investor.

If you purchased L Bonds, we want to speak to you. Our attorneys exclusively represent investors in FINRA arbitrations. We have handled hundreds of individual FINRA arbitrations. Our law firm currently represents dozens of individual GWG L Bond holders in arbitration cases throughout the country. Please call 800-767-8040 and ask to speak with attorneys Marc Fitapelli or Jeffrey Saxon to learn why so many L Bond holders decided to trust MDF Law with their case.

Before GWG filed for bankruptcy, attorney Marc Fitapelli prepared a 15-minute presentation discussing this case. There is a link to the presentation below. It can also be accessed here: www.GWGCase.com. If you have questions about this case, please feel free to call Marc Fitapelli on his direct line at (212) 658-1501. Both he and his partner, Jeffrey Saxon, are interested in speaking to investors who purchased L Bonds through Dempsey Lord Smith or any other broker-dealer. We are particularly interested in speaking to individuals who invested in other illiquid investments, including annuities, non-traded REITs or other “bond” programs.

MDF Law PLLC
28 Liberty Street, 30th Floor
New York, New York 10005
Receptionist: (800) 767-8040
www.mdf-law.com


THIS IS NOT LEGAL ADVICE.
ATTORNEY ADVERTISING
PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME

Marc Fitapelli
MDF Law
+1 212-203-9300
email us here

GWG L Bonds Lawsuit: Was Your Advisor Negligent?