If you have information related to the sales of GWG Holdings investments, please contact the Nationwide Investment Fraud Law Firm, Haselkorn & Thibaut, P.A.

PALM BEACH, FL, USA, September 20, 2022 /EINPresswire.com/ -- GWG investors with information related to the manner in which GWG Holdings investments were marked, sold, or transactions were supervised may contact the national investment fraud law firm Haselkorn & Thibaut, P.A.

Many GWG investors continue to look at all options to try to recoup their investment losses while GWG itself continues to be mired in bankruptcy. GWG investors are encouraged to contact our experienced investment fraud lawyer to discuss any details in a confidential and free consultation at 1 888-628-5590.

The SEC filed a lawsuit against Western International Securities and five of its brokers recently. (Central District of California, Case # 2:22-cv-04119) for violating Regulation BI (the firm's best interest responsibilities). What is interesting about this recent case is that it involved investment recommendations and transactions for client investors in GWG Holdings Inc. securities products.

For clients of Haselkorn & Thibaut, P.A. a similar strategy has proven effective in assisting their clients with recovery of losses and damages incurred from similar transactions at other investment firms. Whether or not the investment products recommended received proper due diligence from the firm, from the financial advisors, whether the transactions recommended were suitable or appropriate, and whether or not the accounts, transactions, activities, individuals were all properly supervised are often areas of investigation and inquiry for other clients of Haselkorn & Thibaut, P.A. in similar circumstances.

GWG Holdings Inc. (NASDAQ: GWGH), also known as GWG, filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of Texas (case number 22-90032). Total liabilities for the firm were estimated to be about $2.1 billion. The recent drops in the value of various stock, preferred stock, and bond investments issued, as well as the pending bankruptcy, could be devastating for GWG investors who purchased and who are likely still holding various bonds, preferred stock, or common stock in GWG, as it could mean they have or will face investment losses based on the decline in the value of those securities.

While financial advisors initially tried to calm investors and “kick the can down the road” telling them to just be patient and the bankruptcy proceeding will resolve quickly and the securities will all simply return to original par value or close to it, investors who accepted such representations have now begun to realize that was, at best, merely rumors and suspicions, or wishful thinking.

As time goes on and the bankruptcy process shows no indication of any near-term conclusion that will be positive for investors, those representations are wearing thin for many investors. In fact, one of the alarming indicators surfaced to some investors when GWG missed principal and interest payments of $3.25 million and $10.35 million on the L Bond issuance when they were due on January 15, 2022. These late payments hinted at a variety of other possible issues at GWG.

Nevertheless, many financial advisors pretended to be caught by surprise by these events, having not known, or failed to advise and warn their investor clients of the possibility. Since that time, many financial advisors have attempted to downplay the bankruptcy as well as the financial situation at GWG to their investor clients – with good reason, many of those clients likely should have never been recommended or sold the GWG investments. Now that the actual risks of those investments may be coming to fruition, financial advisors are scrambling for any potential positive news, and thus far, there is not much.

As a result, many GWG investors are evaluating prospective lawsuits and FINRA arbitration claims as they weigh their alternatives for trying to recoup their investment losses. While those losses may be unrealized as no sales have taken place, the loss of the interest income and the potential loss of the principal is no less “real” for each investor. Thus, the opportunity to take action and do something as quickly and efficiently as possible, rather than simply sit on the sidelines, wait and wring their hands, is, in the view of many investors, a much better option.

According to Matthew Thibaut, Esq., a founding partner of Haselkorn & Thibaut, P.A. (InvestmentFraudLawyers.com), a nationwide law firm that is representing numerous clients in pending claims and investigating these potential claims on behalf of many other investors: "Based on the calls we've been getting recently, it appears that some financial advisors who were marketing GWG-related investments (and GWG L-Bonds, and preferred stock in particular) to client investors who were seeking safe, conservative, fixed income securities are now finding that these securities were in reality little more than speculative bets, and the financial advisors that marketed these securities are now limited to lip service in their efforts to potentially avoid a claim that might hold the firm that sold these securities to the investors from being responsible to their investor clients.

Haselkorn & Thibaut, P.A. has established a GWG hotline at 1 888-628-5590, where experienced attorneys are available to take your calls during a fast, free, and friendly preliminary conversation to discuss any details or information you might have related to GWG investment holdings.

Following the early 2022 missing payments, many financial advisors were understandably inundated with client calls expressing concerns and seeking answers. Unfortunately, rather than accurately describing the situation accurately, many financial advisors initially attempted to downplay the problems at GWG, some attempting to characterize the missed payment on the bonds as an isolated one-off situation affecting only L Bond holders and suggesting this was going to be something that GWG might get corrected in the near term, and even if a bankruptcy filing takes place, they should not let that bother them either. While it is difficult to speculate exactly what basis such representations had at the time, for most investors, their trust has now clearly been irretrievably broken and they are prepared to take any practical action possible in an effort to try to recoup their unexpected losses.

With the passage of time and the expiration of the grace period, those L-Bond and other GWG investors came to realize that their fears were well-founded with additional negative news and, most recently, GWG's bankruptcy filing have all had an enormous impact, especially on the investors who relied upon the fixed income stream as well as those who had a substantial portion of their investment capital tied up in GWG or other similar illiquid investments.

While the ultimate final impact of the bankruptcy filing on GWG investors remains unclear, and likely will remain so for some time, it appears that GWG L bond (as well as preferred and common stock) investors are likely to see some potential investment losses. There appears to be little in the way of any secondary market pricing and few if any purchasers that are willing to pay anything beyond what would be considered scrap value prices for these securities.

GWG's bankruptcy filing confirmed (up until that point) rumors that the company had some looming cash flow and other related financial issues. Somewhat oddly, GWG appears to have suggested that some of the purported blame for its issues leading up to the bankruptcy could be traced to expenses related to recent SEC probes into its sales methods used in marketing its various securities. While on the surface such investigations could create some expenses for a public company, they are not entirely unexpected, and it appears to be a curious finger-pointing effort by GWG.

According to GWG's filings with the Securities and Exchange Commission (SEC) on January 18th, a decrease in the amount of sales of its L Bonds resulted in a capital shortage, resulting in a liquidity shortage. GWG Holdings Inc. also stated at the time that the timely filing of the Annual Return of Form 10-K is in jeopardy because the accounting firm entrusted with the assignment has elected not to continue to provide such services.

Now, months later, many investors who received assurances from their financial advisors that missed interest payments and investment capital might have appeared intact early on are now feeling the financial impact of not only missing interest payments but also the possibility of losing their investment principle as a result of GWG's bankruptcy filing and related financial issues. Some investors have already decided to take action and are discovering that filing a securities arbitration (FINRA) claim against the financial advisor and/or firm that sold them the investments appears to be one path for recovering investment losses, and one that appears to progress toward a potential resolution much faster than the bankruptcy. Also, filing a FINRA claim does not delay or interfere with the bankruptcy proceeding, as it is a separate track altogether.

The FINRA arbitration claim process is very different from a traditional state or federal court lawsuit. It is an alternative dispute process that is intended to be a faster and more efficient means of resolving such matters. In that process, the claims involve more streamlined discovery. In fact, one material difference that appeals to many investors is the fact that discovery in the FINRA claim process is limited to document exchanges between the parties, and typically does not involve depositions of witnesses. The overwhelming majority of investors seek to rely on experienced attorneys who have handled these specific types of FINRA claims, as they know what documents are required to effectively establish both liability and damages in these claims, and that evidence is often critical for investors.

If you have any information about GWG investments and how such investment products were handled or presented to investors by brokers or financial advisors, please contact Haselkorn & Thibaut, P.A. nationwide at 1 888-628-5590 .

The sole purpose of this press release is to investigate how various FINRA broker-dealer firms and Registered Investment Advisory firms investigated, marketed, and sold GWG investment products and investment strategies that included various GWG investments. This investigation also includes, but is not limited to, investigating any approvals with such firms for sales of these investments to investor clients, as well as how these investments were presented to investor clients.

Haselkorn & Thibaut, P.A. is a law firm that focuses on investment fraud, financial advisor negligence cases and FINRA securities arbitration claims throughout the country. The law firm has offices and is available by appointment in Palm Beach, Florida, on Park Avenue in New York City, in Houston, Texas, and in Cary, North Carolina. Investors are encouraged to contact our experienced investment fraud lawyer for a confidential and free consultation at 1 888-628-5590.

Matthew Thibaut
Haselkorn & Thibaut, P.A.
+1 888-628-5590
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