Did your D. H. Hill Securities broker recommend an investment in GWG L Bonds?
The White Law Group is currently representing investors in claims against their brokerage firms for improperly recommending high risk GWG L Bonds, sponsored by asset manager GWG Holdings Inc. If you are concerned about financial losses in GWG L Bonds with your D. H. Hill Securities broker, the White Law Group may be able to help you.
To learn about our recent FINRA claims involving GWG Holdings Inc. please see:
FINRA Lawsuit filed against Emerson Equity LLC involving $2.5 Million in GWG Bonds
FINRA Lawsuit filed against G.A. Repple & Company involving GWG L Bonds
Unfortunately for investors, on April 20, 2022, GWG Holdings, Inc. filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of Texas (Case# 22-90032, 4:2022bk90032).
The company failed to make $13.6 million in combined interest and principal payments to its bondholders in January, and then again in February. GWG Holdings, a NASDAQ listed company, is currently under investigation by the SEC for allegations of misleading investors.
GWG Holdings began publicly offering and selling L Bonds in January 2012 and up until April 2021 through numerous regional broker-dealers, such as D. H. Hill Securities. GWG L Bonds are backed by life settlements. The company pooled money from bond investors to purchase life insurance policies on the secondary market; then used payouts from the policies when people passed to repay investors. These L Bonds are complex, high-risk investments that were portrayed to investors as being safe and a “sure thing.”
According to its prospectus, the L Bonds’ security interest is “subordinate to other debt obligations.” As of September 2021, GWG had more than $2 billion in total liabilities, including $1.55 billion in L Bonds.
According to a class action lawsuit, in 2018 and 2019, GWG Holdings allegedly moved over $350 million to The Beneficient Company Group, its largest shareholder, and its subsidiaries and issued $366 million in L Bonds to one of the subsidiaries. GWG ran into serious liquidity problems in April 2021 when it reportedly ceased to sell the bonds. To keep it afloat, in August 2021, the company offered its entire portfolio of life insurance policies as collateral for loans.
As we previously reported in November 2021, the Beneficient Company Group separated from GWG Holdings after paying off its Commercial Loan Agreement with GWG.
D. H. Hill Securities Complaints: How to Recover GWG L Bond Losses
Broker dealers are required to perform adequate due diligence on all investment recommendations they make. They must ensure that each investment is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.
D. H. Hill Securities is a dually registered broker dealer and investment advisor located Kingwood, Texas, according to FINRA. D. H. Hill Securities is one of many regional broker-dealers who sold the complex GWG L Bonds to retail investors.
If D. H. Hill or one of its registered representatives makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment, they may be liable for investment losses through FINRA arbitration.
To learn more about the firm’s investigation of D. H. Hill Securities, please see:
D.H. Hill Securities Sanctioned for Private Placement Sales
D.H. Hill Securities & GPB Holdings II Lawsuits
If you suffered financial losses in GWG L Bonds with D. H. Hill Securities and would like to discuss your litigation options, please call the securities fraud lawyers of The White Law Group at (888) 637-5510 for a free consultation.
These claims are distinct from the class action filed directly against GWG Holdings and could be pursued concurrently.
The Financial Industry Regulatory Authority (FINRA) operates the largest securities dispute resolution forum in the United States, and has extensive experience in providing a fair, efficient and effective venue to handle a securities-related dispute.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. The firm represents investors in FINRA arbitration claims throughout the country. To learn more about the firm’s representation of investors, please visit www.whitesecuritieslaw.com.
Tags: D. H. Hill investor dispute, D.H. Hill Securities complaints, GWG bankruptcy, GWG bondholder lawsuits, GWG chapter 11, GWG D. H. Hill Securities, GWG FINRA lawsuit, GWG Holdings Inc investigation, GWG Investor dispute, GWG L Bonds default Last modified: December 8, 2022