logo_web_wht
(888) 637-5510

Written by 5:23 pm Blog, Current Investigations, Securities Fraud Articles

GWG Holdings Executives Resign following Internal Review 

GWG Holdings Executives Resign following Internal Review, featured by top securities fraud attorneys, the White Law Group

Update on GWG Holdings Investigation: Lawsuits to Recover Investment Losses 

According to reports this week, two executives of GWG Holdings are reportedly resigning following an internal review that uncovered former board members’ concerns about an investment that were allegedly ignored. 

GWG Holdings’ CEO and CFO have resigned but will reportedly remain on the board, according to a filing with the U.S. Securities and Exchange Commission. 

The resignations are reportedly related to the circumstances surrounding the departures of three directors last year. 

The board members had reportedly been on a special committee formed to approve or reject potential transactions with Beneficient Company Group LP. Beneficient, which went public in September, had a partnership with GWG before separating into an independent company in November 2021. 

Since 2018, GWG had reportedly invested at least $230 million in Beneficient. To learn more about the firm’s investigation of GWG, please see: GWG L Bonds *Lawsuits to Recover Financial Losses*.

In a new filing on Monday, the company, which had originally stated that the three resignations “were not due to any disagreement with the company,” said an investigations committee found new information which determined that a disagreement led to the resignations. 

The three directors had reportedly objected to a “proposed investment the company was considering” in Beneficient. They reportedly made their objections known to the CEO and CFO in writing and verbally, according to the filings. 

This reportedly led to the board holding a special meeting to consider certain “urgent” matters about the investment in question. Although the disagreements weren’t resolved at this meeting, the investment was still reportedly approved. This was something that all board members may not have known, according to the filing. 

The board reportedly voted to dissolve the special committee meant to review transactions with Beneficient, in order to approve the investment. 

GWG filed for bankruptcy in April after an SEC investigation when it was forced to stop selling L Bonds. The company filed for bankruptcy with $2 billion in debt, including $1.6 billion in outstanding bonds. 

Over the past 12 months, GWG’s shares have declined from $10.55 to $1.03. 

Lawsuits to Recover Investment Losses  

The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly selling high-risk investments, like GWG L Bonds, to investors.  The firm has filed numerous claims on behalf of GWG investors to recoup investment losses.  To learn more about the White Law Group’s claims please see: The White Law Group Files a Lawsuit against Arete Wealth Involving GWG Holdings 

 Brokerage firms are required by the Financial Industry Regulatory Authority (FINRA) to disclose all the risks of an investment, prior to making recommendations to an individual investor. Recommendations should only be made if the investment is suitable for an individual investor given their age, investment objections, investment experience and risk tolerance.    

Brokerage firms that do not perform adequate due diligence on an investment and/or make unsuitable recommendations can be held accountable for investment losses through FINRA Dispute Resolution.    

If you are concerned about your investment in GWG L Bonds, the securities attorneys at The White Law Group may be able to help you.  Please call the offices at 888-637-5510 for a free consultation.    

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington.    

For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com.    

   

 

Tags: , , , , , , , , , , , , , , , , Last modified: November 15, 2022