Legal Matters

As previously covered in this space, GWG Holdings, Inc., a financial services firm based in Dallas, Texas, filed for bankruptcy on Wednesday, April 20. The bankruptcy followed the company’s failures to make principal and interest payments on its L Bonds series and its missed deadlines to file audited financial statements for the past two years. GWG L Bonds shares have collapsed in the wake of the GWG Holdings bankruptcy filing. What are GWG Holdings L Bonds? GWG Holdings, through subsidiary GWG Life, LLC, owns life insurance policies. GWG Holdings used these policies to form investments called “L Bonds.” These L Bonds allowed investors to purchase life insurance policies on a secondary market, using payouts from the deaths of the insureds to pay investors. GWG Holdings L Bonds Collapse GWG Holdings’ L Bonds became popular with brokerage firms and financial advisors a few years ago, with many advisors soliciting their clients’ purchase of these bonds. According to Investment News, investors purchased a total of [...]

WestPark Capital clients who were sold GWG Holdings L bonds may have the right to pursue legal claims to recover their losses in the risky, illiquid investments. WestPark Capital, a broker dealer headquartered in Los Angeles, California, is believed to be among the advisory firms who sold L Bonds to its clients. As previously covered in this space, GWG Holdings, Inc., a financial services firm based in Dallas, Texas, filed for bankruptcy on Wednesday, April 20. The bankruptcy filing had been predicted based on the company’s failures to make principal and interest payments on its L Bonds series and its missed deadlines to file audited financial statements for the past two years. What are GWG L Bonds? GWG Holdings, through subsidiary GWG Life, LLC, owns life insurance policies. GWG Holdings used these policies to form investments called “L Bonds.” These L Bonds allowed investors to purchase life insurance policies on a secondary market, using payouts from the deaths of the [...]

As previously covered in this space, GWG Holdings, Inc., a financial services firm based in Dallas, Texas, filed for bankruptcy on Wednesday, April 20. The bankruptcy filing had been predicted based on the company’s failures to make principal and interest payments on its L Bonds series and its missed deadlines to file audited financial statements for the past two years. What are GWG L Bonds? GWG Holdings, through subsidiary GWG Life, LLC, owns life insurance policies. GWG Holdings used these policies to form investments called “L Bonds.” These L Bonds allowed investors to purchase life insurance policies on a secondary market, using payouts from the deaths of the insureds to pay investors. GWG L Bonds Collapse GWG Holdings' L Bonds became popular with brokerage firms and financial advisors a few years ago, with many advisors soliciting their clients’ purchase of these bonds. According to Investment News, investors purchased a total of approximately $1.6 billion of GWG L Bonds. In February [...]