GWG L Bonds News

GWG L Bonds News

Many investors who owned gwg l bonds have been hit hard by the recent news that alternative asset manager GWG Holdings Inc. has filed for bankruptcy. The company missed interest and principal payments to bond investors by a large margin. The company’s troubles centered around their L bonds series that were backed by life settlements. The firm marketed the investments to investors as safe and low risk for retirement savings.

Is GWG holding in trouble?

The gwg l bonds news bonds were sold by managing broker-dealer Emerson Equity, which partnered with brokerage firms to sell them to customers. The brokerage firms would pay Emerson up to 8% in commissions on the sales. According to a class action securities lawsuit filed in early 2022, investor plaintiffs allege that GWG Holdings board chairman Brad K. Heppner set up the L Bond distribution platform to make money for himself. The lawsuit also states that the corporation stopped investing in life insurance policies in 2018 and began using the funds to invest in The Beneficient Company Group, LP.

GWG Holdings reportedly had more than $2 billion in liabilities and has since missed millions of dollars in combined interest and principal payments to bond investors. Currently, the company’s financials are in disrepair and its auditors have resigned. If a liquidation event is forced, the company will not have the assets to pay its bondholders.