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Written by 4:20 pm Blog, Current Investigations, Securities Fraud

NI Advisors Lawsuits: Recovery Options for GWG L Bond Investors

Did your NI Advisors broker recommend investing in GWG L Bonds? Featured by top securities fraud attorneys, the White Law Group

Did your NI Advisors broker recommend investing in GWG L Bonds?

Have you suffered investment losses involving GWG L Bonds with NI Advisors? If so, the investment fraud attorneys at the White Law Group may be able to help you by filing a FINRA Dispute Resolution claim.

According to a press release on April 20, 2022, GWG 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. 

GWG finances its portfolio of life insurance assets through the sale of alternative investment products called “L Bonds,” according to its website. Although these products are touted as offering potentially higher yields than other investment assets that are correlated with the traditional stock and bond markets, they come at a much greater risk to investors. 

2022 has been a year of uncertainty for GWG L Bond investors. The Chapter 11 filing comes after GWG failed to make $13.6 million in payments to GWG bondholders in January. The company also failed filed year end financials for 2021. 

According to SEC filings on April 20, the company blames the Securities and Exchange Commission for its troubles, claiming that by investigating the sales practice of some of the 145 broker-dealer firms that sold the bonds, it harmed GWG’s reputation in the marketplace and prevented it from raising more capital through more GWG L bond sales. 

The company says in the filings that it “expects restructuring to strengthen its financial position and enhance the value of its assets.” 

To learn more, please see: GWG Holdings Files Chapter 11 Bankruptcy Protection after Missing Interest Payments to Investors. 

GWG L Bonds Complex, High-Risk Investments 

GWG L Bonds are high-risk, speculative investments that are issued for a certain time period. These L Bonds are callable meaning GWG can repurchase them at any time without penalty and at a loss to the investor and they are also illiquid.  

NI Advisors sold High Risk GWG L Bonds to Investors 

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. 

If a broker or brokerage firm 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. 

NI Advisors is one of many regional broker-dealers who sold GWG L Bonds to investors. If you suffered losses investing in GWG L Bonds with NI Advisors and would like to discuss your litigation 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 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. 

 To learn about our recent FINRA claim involving GWG please see: 

FINRA Lawsuit filed against Emerson Equity LLC involving $2.5 Million in GWG Bonds 

 

 

 

Tags: , , , , , , , , Last modified: April 26, 2022