Tr?id=566623520170033&ev=PageView&noscript=1

Ä¢¹½´«Ã½

GWG Bondholders Prepare To File Suit Against Financial Advisory Firms and Executives

Posted on January 5th, 2023 at 10:36 AM
GWG Bondholders Prepare To File Suit Against Financial Advisory Firms and Executives

A group representing nearly 27,000 retail investors is set to file suit against GWG Holdings’ executives as well as the financial advisory firms that marketed and sold $1.6 billion worth of GWG L bonds, according to a recent bankruptcy court filing in Houston.

The GWG official committee of bondholders has claimed that GWG Holdings was a “multiyear long fraud orchestrated by Brad Heppner to enrich himself and associated corporate entities by plundering the debtors”, according to the filing. Heppner is the CEO of The Beneficient Company Group, which is the asset manager that took control over GWG in 2019.

“Put simply, GWG was a classic Ponzi scheme”, according to the filing, which additionally stated that the group intends to file suit against Heppner, certain financial advisory firms, and other executives. While the filing did not name specific financial advisory firms that sold the L Bonds, the filing alleged that at least 145 broker-dealers marketed GWG’s product. According to the filing, each GWG L Bond owner invested less than $45,000 on average, but the bonds were constantly illiquid and now possess no determined value.

All that said, investors should be aware of their recovery options, including pursuing FINRA arbitration claims on an individual basis. The arbitration alternative may offer advantages over filings in court.

Ä¢¹½´«Ã½ LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, law, sec, gwg holdings

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

Thank you for your professional assistance with this matter. You are very good at what you do.

John T.

LATEST NEWS AND ARTICLES

1787157891 Law
August 19, 2026
Former UBS Financial Advisor Suspended and Fined Over Unauthorized Trading Allegations

The Financial Industry Regulatory Authority (FINRA) suspended a former UBS Ä¢¹½´«Ã½alth Management USA broker for three months and fined him $10,000 after finding that he executed hundreds of trades in two customers' accounts without the required written authorization.

1787156982 Law
August 19, 2026
FINRA Suspends Former Gradient Securities Advisor

The Financial Industry Regulatory Authority (FINRA) has suspended former Gradient Securities representative Mark J.

1787070589 Law
August 18, 2026
Senior Protection Case Study: Edward Jones and Senior Investor Safeguards

A recent incident involving Edward Jones illustrates how challenging it may be to employ safeguards for protecting older clients from financial exploitation.