Call Now for a Free Consultation
(888) 637-5510

Written by 4:59 pm Blog, Current Investigations

M Stevens Securities Lawsuits: Help for GWG L Bond Investors   

M Stevens Securities Lawsuits: Help for GWG L Bond Investors, featured by top securiites fraud attorneys, the White Law Group

 M Stevens Securities sold High Risk GWG L Bonds 

 Have you suffered investment losses involving GWG L Bonds with M Stevens Securities? If so, the securities fraud lawyers at the White Law Group may be able to help you by filing a FINRA Dispute Resolution claim against your brokerage firm.  

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, according to a press release on April 20, 2022.  

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.   

The Chapter 11 filing comes after GWG failed to make $13.6 million in payments to GWG bondholders in January. By April 1, 2022, GWG had failed to timely file its annual report with the SEC, marking the third time in the prior four years that GWG had failed to timely file an annual report. GWG claims that the failure was due to the resignation of the independent auditor, Grant Thornton, who resigned in December 2021; Grant Thornton had been GWG’s fourth independent auditor since August 2019.  

According to SEC filings on April 20, 2022 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.   

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

GWG L Bonds are Complex, High-Risk Investments  

GWG Holdings has a history of selling L Bonds dating back to January 2012. The company began publicly offering and selling L Bonds in January 2012 under the name “Renewable Secured Debentures”. These debt securities were re-named “L Bonds” in January 2015, according to a June 3, 2020 prospectus.  In 2020, the company launched a new offering called the Liquidity Bond 2020, constituting secured debt of GWG Holdings, Inc.  

GWG L Bonds were publicly offered and sold on a continuous basis in 2014, 2017 and again in 2020 for a total of $4 billion in principal amount. The most recent offering was intended to run on a continuous basis through June 2023, according to the prospectus.   

M Stevens Securities 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.   

M Stevens Securities (CRD#: 296750/SEC#: 8-70209) is a dually registered broker dealer and investment advisor located in Newport Beach, California, according to its website. M Stevens Securities is one of many regional broker-dealers who sold the complex GWG L Bonds to retail investors.  

If M Stevens or one of its registered reps 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 

If you suffered losses investing in GWG L Bonds with M Stevens Securities 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.   

To learn about our recent FINRA claims involving GWG 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  

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 27, 2022