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Written by 4:19 pm Blog, Current Investigations, Securities Fraud

Did your Emerson Equity advisor recommend investing in GWG L Bonds?

Did your Emerson Equity advisor recommend investing in GWG L Bonds? featured by top securities fraud attorneys, the White Law Group

Emerson Equity Lawsuits: How to Recover Financial Losses involving GWG L Bonds 

Have you suffered losses investing in GWG L Bonds with Emerson Equity LLC? If so, the securities attorneys at The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the firm.  

The White Law Group is currently representing many investors in claims against their broker age firms who are seeking to recover damages from financial losses involving GWG L Bonds. To learn about our most recent claim, please see: FINRA Lawsuit filed against Emerson Equity LLC involving $2.5 Million in GWG Bonds.

Bad news continues to pile up for investors of GWG Holdings Inc., and its L Bonds. On April 20, 2022 GWG Holdings Inc. and its subsidiaries, GWG Life, LLC and GWG Life USA, LLC, have filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the Southern District of Texas as part of a restructuring process. 

According to an article in Investment News today citing SEC filings, GWG is blaming the Securities and Exchange Commission for questioning the numerous broker-dealers that sold GWG L bonds “for the company’s collapse.” As we previously reported, GWG defaulted on $13.6 million in payments in January to bondholders. (To learn more, please see: GWG Holdings Files Chapter 11 Bankruptcy Protection after Missing Interest Payments to Investors)

GWG claims in its Chapter 11 filing that the SEC’s investigation of the company eventually included the sales practice of some of the 145 broker-dealer firms that sold the bonds. According to GWG, the investigation of these firms harmed GWG’s reputation in the marketplace and prevented it from raising more capital through sales of GWG L Bonds. 

Emerson Equity sold GWG L Bonds 

One of the many firms that sold GWG L Bonds to retail investors was Emerson Equity, a broker-dealer based in California that focuses on the sales of private placement investments. Emerson Equity also happens to be the managing broker-dealer and underwriter for GWG bonds, according to its website. 

Life Settlements are Risky and GWG was “over-leveraged” 

According to the GWG L Bond prospectus, “An investment in the L Bonds involves significant risks, including the risk of losing your entire investment, and may be considered speculative.”    

An L bond is an alternative investment vehicle that attempts to provide a high yield for a lender in exchange for bearing the risk that an insurance policy premium or benefits may not be paid.  

According to the Investment News article, “GWG was over-leveraged with reasonably expensive money,” and the life settlement business wasn’t “profitable enough to overcome the cost of the debt or the preferred stock dividends and operations.” 

Investigating Potential Lawsuits involving Emerson Equity and GWG L Bonds 

If you suffered losses investing in GWG L Bonds with Emerson Equity LLC and would like to discuss your recovery options, please call the securities attorneys 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 Holding Inc. 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: , , , , , , , , , , Last modified: April 21, 2022