• On July 31, 2024, the SEC announced that it had reached an agreement with Western International Securities and five of its registered representatives to settle an ongoing lawsuit arising out of the sale of high-risk and speculative L Bonds issued by the now-bankrupt GWG Holdings, Inc.
• On July 28, 2024, the SEC fined broker-dealer LifeMark Securities Corp. for failing to comply with Regulation Best Interest connected with recommending GWG L Bonds to retail customers between July 2020 and January 2022 without exercising reasonable diligence, care, and skill to understand the potential risks, rewards, and costs associated with the recommendations.
• On July 29, 2024, the SEC filed a lawsuit against Garrett Moretz, a LifeMark Securities Corp. broker, alleging that he fraudulently sold high-risk and speculative GWG L Bonds to customers by misrepresenting them as “guaranteed.”
• Retail Investors who purchased GWG L Bonds are encouraged to contact the GWG L Bond lawyers at Iorio Altamirano LLP to review their legal rights to recover their investment losses.

Western International Securities Agrees to Settle Lawsuit with the SEC

On July 31, 2024, the SEC announced that it had reached an agreement with Western International Securities and five of its registered representatives to settle an ongoing lawsuit arising out of the sale of high-risk and speculative L Bonds issued by the now-bankrupt GWG Holdings, Inc.

The SEC filed its complaint on June 15, 2022, that the brokerage firm and several of its representatives violated Regulation Best Interest by failing to perform due diligence regarding the inherent risks associated with L Bonds issued by GWG Holdings, Inc. and recommending the L Bonds to its customers. The alleged violations were made in connection with the sale of approximately $13.3 million in L Bonds sold to retail customers.

To read more about the allegations, please see our previous blog post: Law Firm Investigating the Sale of GWG L Bonds to Retail Investors by Western International Securities, Inc.

As part of the settlement, which requires court approval, Western International agreed to disgorge $34,468 in commissions it received in connection with the transactions at issue. The brokerage firm also agreed to pay a civil fine of $160,000. The financial penalties represent a small portion of commissions that the firm and its brokers received in selling GWG L Bonds to retail investors. According to court records, Western International received at least $3 million in commissions from GWG Holdings for selling L Bonds to retail investors between April 2018 and April 2022.

Investors who purchased GWG L Bonds should know that they will not be receiving monetary compensation from the SEC’s settlement. Instead, they will need to file their own independent securities arbitration claim to seek recovery.

GWG L bond investors should contact our law firm to review their legal options. Customers may be entitled to compensation without paying any out-of-pocket fees or costs through a contingency fee arrangement with securities arbitration law firm Iorio Altamirano LLP.

SEC and LifeMark Securities Corp Settle GWG L Bond-Related Charges

Western International Securities is not the only broker-dealer to settle GWG L Bond-related charges with the SEC this week. On July 28, 2024, the SEC announced that it had reached a settlement with broker-dealer LifeMark Securities Corp. The settlement was reached in anticipation of the SEC initiating administrative and cease-and-desist proceedings connected with Regulation Best Interest violations arising out of the sale of GWG L Bonds.

According to the SEC, between July 2020 and January 2022, LifeMark Securities and one of its registered representatives failed to comply with Regulation Best Interest’s Care Obligation, Exchange Act Rule 15l-1(a)(2)(ii), when the registered representative recommended GWG L Bonds to retail customers without exercising reasonable diligence, care, and skill to understand the potential risks, rewards and costs associated with their recommendations.

Specifically, the SEC alleged that LifeMark Securities, through its broker, unreasonably disregarded, dismissed, misunderstood, or failed to take reasonable steps to understand significant disclosures and information regarding GWG and L Bonds contained in prospectuses and SEC filings. Instead, the broker allegedly relied on LifeMark Securities’ approval of L Bonds without question or inquiry. For example, according to the SEC, the broker did not know what was meant by GWG’s statement in the June 2020 Prospectus that L Bonds were only suitable for people with substantial financial resources and did nothing to find out prior to recommending L Bonds to retail customers.

The SEC also alleged that the broker failed to comply with the customer-specific prong of Regulation’s Best Interests Care Obligation by recommending investing $50,000 into an illiquid 5-year GWG L Bond to a 63-year-old semi-retiree with a moderate risk tolerance and a documented investment objective of preservation of capital. The broker supposedly did not know and could not explain how it was in the customer’s best interest to buy an illiquid 5-year L Bond when at the time he made the recommendation, there was “substantial doubt” about GWG’s ability to continue as a going concern for the next 12 months following the filing of its 2020 Form 10-K.

LifeMark Securities consented to a civil monetary penalty of $85,000 and a disgorgement of $4,410 in commissions.

Unfortunately, sanctions such as these do not put money back into the pockets of retail investors who lost money due to failures by firms and brokers in selling GWG L Bonds.

However, retail investors who purchased GWG L Bonds based on the recommendation of their brokers are not without recourse and should contact our GWG L Bond lawyers for a free and confidential consultation to review their legal rights.

SEC Charges LifeMark Securities Corp. Broker with Fraud Related to the Sale of GWG L Bonds

On July 29, 2021, the Securities and Exchange Commission filed a lawsuit against another LifeMark Securities Corp. broker related to the sale of GWG L Bonds. The complaint, filed in Federal Court in Charlotte, NC, alleged that broker Garrett Moretz fraudulently sold high-risk and speculative GWG L Bonds to customers by misrepresenting them as “guaranteed” from at least September 2019 until about August 2020.

For example, the SEC’s complaint alleges that the broker sent emails to customers that contained material misrepresentations, such as:

• “Are you looking for a great guaranteed rate of return and payout on your money?”
• “We have fully guaranteed investment/income options available in 2-, 3-, 5-, and 7-year terms.”
• “These are guaranteed to pay the specified rate of return MONTHLY for the predetermined period after which you get your full investment returned.”
• “These are all great opportunities for folks that want a steady rate of return and guaranteed payout.”

The complaint also alleges that Mr. Moretz represented to another customer that the bonds were “safe” and “guaranteed.’ GWG L Bonds were neither. Instead, they were speculative, high-risk, illiquid, high-commission, and unrated bonds.

Mr. Moretz is facing charges of violating Section 17(a) of the Exchange Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder.

About the L Bonds

GWG L Bonds were speculative, high-risk, illiquid, and unrated alternative investments suitable only for customers with substantial resources.

Brokerage firms are required to make investment recommendations that are in the best interest of their customers. Financial advisors also have an obligation to be truthful and disclose all material facts and risks to customers when making investment recommendations. Firms and brokers must also conduct reasonable due diligence on the securities they offer before recommending them to customers. Iorio Law PLLC is investigating whether brokerage firms and their brokerages met these obligations connected with their sale of L Bonds to retail investors.

About Iorio Law PLLC

Iorio Law PLLC is a securities arbitration law firm in New York, NY. We represent investors nationwide and vigorously pursue FINRA arbitration claims on behalf of investors to recover investment losses.

August M. Iorio, managing attorney of Iorio Law PLLC, was at the forefront of the investigation into the GWG L Bonds starting in late 2021 and has already helped investors recover over $3.5 million in losses.

GWG L Bond investors should contact securities arbitration law firm Iorio Altamirano LLP to review their legal options. The firm will review the terms of investors’ GWG L Bond investments at no cost and provide a free consultation. Customers may be entitled to compensation without paying any out-of-pocket fees or costs through a contingency fee arrangement with securities arbitration law firm Iorio Altamirano LLP. To set up an evaluation, email securities arbitration attorneys August Iorio at august@ia-law.com or Jorge Altamirano at jorge@ia-law.com. Alternatively, call the firm toll-free at (646) 330-4624.

The customer complaints are primarily FINRA securities arbitration complaints that were brought by GWG L Bond investors who were sold speculative, high-risk, illiquid, high-commission, and unrated GWG L Bonds by the firm’s brokers, including Tony Barouti. More than half of Emerson Equity’s GWG L Bond-related customer disputes arise out of recommendations made by Mr. Barouti.

Although Emerson Equity’s legal fees and settlements have surpassed $6 million, the cost represents less than one-third of the $20.1 million that the firm received from GWG Holdings Inc. for brokerage services from June 2018 through June 2022.

Iorio Law PLLC, a securities arbitration law firm that represents investors, continues to investigate potential claims against Emerson Equity for its role in selling the highly speculative and risky GWG L Bonds to retail investors.

The law firm’s investigation is ongoing after three separate arbitration panels awarded investors damages in connection with the sale of L Bonds by their financial advisors and firms.

Iorio Law PLLC represents numerous GWG L Bond investors across the country and encourages investors who are taking a “wait and see approach” to act now. As the GWG Wind Trustee continues to liquidate GWG’s assets, it is becoming more evident that the GWG L Bonds, now the New Series A1 WDT Interests, are nearly worthless.

Iorio Law PLLC continues to believe that GWG L Bonds investors’ best avenue for potential recovery of losses is to file a separate FINRA arbitration claim against their brokerage firms. Iorio Law PLLC has already helped GWG L Bond investors recover nearly $2 million in losses. These claims are separate and in addition to the liquidation of GWG through the GWG Wind Down Trust.

Investors who purchased GWG L Bonds through Emerson Equity LLC or any other broker-dealer are encouraged to contact Iorio Law PLLC (www.gwglawyer.com) for a free and confidential consultation and to review their legal rights. We can review and analyze potential claims and advise individuals of their legal rights without obligation or cost.

To read more about GWG L Bonds and the alleged misconduct, please visit our investigation page: Iorio Law PLLC’s GWG L Bonds Investor Recovery Center.

Emerson Equity LLC (CRD No. 130032)

Emerson Equity LLC is a dually registered investment adviser and broker-dealer headquartered in San Mateo, CA. The firm is registered in 53 U.S. states and territories and has approximately 206 registered representatives nationwide.

GWG Holdings, Inc. sold the GWG L Bonds through Emerson Equity, its dealer-manager, and a network of regional broker-dealers, who pitched the products to individual retail investors. Emerson Equity and selling agents received up to 5% of the principal amount of the GWG L Bonds sold. The selling brokerage firms also received additional compensation and commissions, up to 8% of the aggregate gross proceeds from the sale of GWG L Bonds.

Emerson Equity was the largest seller of the GWG L Bonds to retail customers. Between 2018 and 2022, GWG paid Emerson Equity approximately $20.1 million in commissions for brokerage services to sell its securities.

Upon information and belief, GWG L Bonds were sold by the following brokers who were associated with Centaurus Financial:

• Tony Barouti, Los Angeles, CA (CRD No. 3031995).
• Scott Blackman, San Mateo, CA (CRD No. 4684484).
• Darrach Bourke, Mill Valley, CA, (CRD No. 5255413).
• Timothy Brown, San Mateo, CA, (CRD No. 1663519).
• Fred Chen, Irvine, CA, (CRD No. 5766069).
• Eric Dec, San Mateo, CA, (CRD No. 2185598).
• Raymond DesRosiers, Richmond, VA, (CRD No. 4621826).
• James Kent, JR., San Mateo, CA & Pinellas Park, FL, (CRD No. 2255753).
• Robert Melberth, Sarasota, FL, (CRD No. 4775230).
• Daniel Pikula, Wellington, FL, (CRD No. 2563165).
• Jason Plucinak, San Mateo, CA & Minneapolis, MN, (CRD No. 4889443).
• Ryan Sherer, Reno, NV, (CRD No. 5952617).
• Tim Sherer, Reno, NV, (CRD No. 833618).

Attention Investors: Did Emerson Equity recommend unsuitable investments, leaving you facing losses? Investors trust brokers and advisors to prioritize their financial well-being. However, when brokers like Emerson Equity fail to conduct proper due diligence, make suitable recommendations, or disclose crucial risks, investors suffer. You have rights! Brokerage firms and advisors are legally obligated to act in your best interest, which includes thorough product evaluation, transparent risk disclosure, and aligning recommendations with your specific financial goals. Breach of these obligations can lead to legal repercussions for the firm or advisor. If you suspect Emerson Equity misled you or recommended unsuitable investments, seek legal counsel to explore your options and potentially recover your losses.

About Iorio Law PLLC

Iorio Law PLLC is a securities arbitration law firm located in New York, NY. We represent investors nationwide and vigorously pursue FINRA arbitration claims on behalf of investors to recover investment losses.

We have nearly 15 years of experience as securities arbitration lawyers and have helped investors recover investment losses in over 700 cases. Our firm will file a FINRA securities arbitration claim on your behalf on a contingency fee basis to try to recover your losses. If we do not obtain a recovery, you do not owe us a legal fee.

If you have invested in L Bonds offered by GWG Holdings, contact securities arbitration lawyers August Iorio at info@iorio.law. Alternatively, call the firm toll-free at (646) 330-4624.

The law firm’s investigation is ongoing after three separate arbitration panels awarded investors damages in connection with the sale of L Bonds by their financial advisors and firms.

In addition to these arbitration awards, brokerage firms have settled cases with investors who have filed arbitration claims. According to our law firm’s review of public disclosure reports of individual brokers, Ausdal Financial Partners and/or its brokers have been the subject of at least 26 customer disputes connected with its sale of GWG L Bonds to retail investors. Of the 26 disclosed disputes, 12 are still pending, and 14 have been settled. The cases that have been settled have recovered an average of approximately 41% of the alleged damages, with a range of recoveries primarily between 30 and 70%. Some of these matters involved a variety of securities in addition to GWG L Bonds.

We represent dozens of GWG L Bond investors across the country and encourages investors who are taking a “wait and see approach” to act now. As the GWG Wind Trustee continues to liquidate GWG’s assets, it is becoming more evident that the GWG L Bonds, now the New Series A1 WDT Interests, are nearly worthless.

Our law firm continues to believe that GWG L Bonds investors’ best avenue for potential recovery of losses is to file a separate FINRA arbitration claim against their brokerage firms. We have already helped GWG L Bond investors recover nearly $2 million in losses. These claims are separate and in addition to the liquidation of GWG through the GWG Wind Down Trust.

Investors who purchased GWG L Bonds through Ausdal Financial Partners or any other broker-dealer are encouraged to contact Iorio Law PLLC (www.gwglawyer.com) for a free and confidential consultation and to review their legal rights. We can review and analyze potential claims and advise individuals of their legal rights without obligation or cost.

To read more about GWG L Bonds and the alleged misconduct, please visit our investigation page: Iorio Altamirano LLP’s Investigation of GWG L Bonds.

Ausdal Financial Partners, Inc. (CRD No. 7995)

Ausdal Financial Partners, Inc. is a dually registered investment adviser and broker-dealer headquartered in Davenport, Iowa. The firm is registered in 52 U.S. states and territories and has approximately 200 registered representatives nationwide.

GWG Holdings, Inc. sold the GWG L Bonds through a dealer-manager and a network of regional broker-dealers, including Ausdal Financial Partners, Inc., who pitched the products to individual retail investors. GWG’s dealer-manager and selling agents, such as Ausdal Financial Partners, Inc., received up to 5% of the principal amount of the GWG L Bonds sold. The selling brokerage firms also received additional compensation and commissions, up to 8% of the aggregate gross proceeds from the sale of GWG L Bonds.

Ausdal Financial Partners, Inc. was one of the largest sellers of the GWG L Bonds to retail customers between 2018 and 2022, receiving at least $1.1 million in commissions from GWG Holdings for brokerage services. Accordingly, we believe that Ausdal Financial Partners, Inc. sold approximately $20 million in GWG L Bonds during this time period.

Upon information and belief, GWG L Bonds were sold by the following brokers who were associated with Ausdal Financial Partners:

• David Geake, Northbrook, IL (CRD No. 3088891) – Barred from the securities industry.
• Andrew McCausland, Northbrook, IL (CRD No. 1595011).
• John DeWitt, Moline, IL (CRD No. 1999161).
• Samuel Julian, Carmel, IN (CRD No. 4488869).
• Scott Lee, Cold Spring, MN (CRD No. 4409541).
• Travis Wolfe, Downers Grove, IL (CRD No. 5851265).
• Max Birkinbine, North Oaks, MN (CRD No. 6836583).
• Randy Birkinbine, North Oaks, MN (CRD No. 2008599).
• David Frohlichstein, St. Charles, IL (CRD No. 1582362).
• John Lancaster III, Glen Ellyn, IL (CRD No. 1293652).
• David Lundquist, Elgin, IL (CRD No. 2784929).
• Randall McGill, Homer Glen, IL (CRD No. 1309727).
• Wilfredo Miranda, Oakbrook Terrace, IL (CRD No. 3273284).
• Walter Nagle, Orland Park, IL (CRD No. 2208043).
• Brian Napier, Greenwood, IN (CRD No. 4555202).
• Jeffrey Peters, Bettendorf, IA (CRD No. 2580603).
• Merriam Rink, Bettendorf, IA (CRD No. 1380705).
• Robert Barghini, Jr., Maple Grove, MN (CRD No. 3141715).

Brokers and brokerage firms like Ausdal Financial Partners, Inc. are required to make investment recommendations that are suitable and in the best interest of their customers. Brokerage firms and financial advisors must also be truthful and disclose all material information and risks of a security when making a recommendation. Retail investors have the right to make an informed decision about whether they are willing to accept the risk of a security. Firms and brokers must also conduct reasonable due diligence on products they offer before recommending them to any clients. When a firm or advisor fails to meet these standards of conduct, they can be held liable for damages.

August 2025 Update: Millions Recovered for GWG L Bond Investors

A Comprehensive Guide for GWG L Bond Investors

Iorio Law PLLC, led by GWG recovery attorney August M. Iorio, has already recovered over $3.5 million for GWG L Bond investors nationwide. We represent clients on a contingency-fee basis, so there’s no fee unless we achieve a recovery.

Attorney August M. Iorio has been investigating the sale of GWG L Bonds for years and has prepared a comprehensive guide to help investors understand what happened and their options: GWG L Bond Investor Recovery Center

Key Information for GWG L Bond Investors:

• Time-Limits: Investors generally have six years from their purchase date to file an arbitration claim. Don’t wait—delaying action could lead to your claim being dismissed for timeliness.

• Minimal Recovery Bankruptcy: Investors can only expect to receive an estimated 2.7% – 3.45% of their original investment through the GWG bankruptcy liquidation and Wind Down Trust.

• Investor Success: FINRA Arbitration Awards: Despite GWG’s dismal liquidation outcomes, investors have a viable path to recovery through FINRA arbitration claims against brokerage firms that sold these risky securities. As of August 14, 2025, investors have won monetary awards in 18 of 20 (90%) of FINRA arbitration trials.

• Broker-Dealer Misconduct & Regulatory Action: FINRA has sanctioned over a dozen brokers and brokerage firms who sold GWG L Bonds to retail investors. The SEC has recently settled with Emerson Equity and Tony Barouti and Western International Securities.

Don’t delay. The longer you wait, the greater the risk that your claim may be barred by time limits. If you’ve invested in GWG L Bonds, contact us for a free, confidential case evaluation.

If you have invested in L Bonds offered by GWG Holdings, contact us for a free, confidential case evaluation.

📞 Call: (646) 330-4624
📧 Email: info@iorio.law
📍 Location: One World Trade Center, 85th Floor, New York, NY 10007
🖊️ Free Case Review: Contact Form

We are committed to holding brokerage firms accountable and helping investors recover their GWG L Bond losses.

About Iorio Law PLLC

Iorio Law PLLC is a securities arbitration law firm located in New York, NY. We represent investors nationwide and vigorously pursue FINRA arbitration claims on behalf of investors to recover investment losses.

With 15 years of combined experience, our securities arbitration lawyers have helped investors recover nearly $100 million in over 700 cases. We will file a FINRA securities arbitration claim on your behalf on a contingency fee basis. If we do not obtain a recovery, you pay no legal fee.

• The GWG Wind Down Trust has sold two of its three tangible assets for a total of approximately $10.58 million.
• The sale of its life insurance policy portfolio generated $10 million in cash.
• The sale of shares in FOXO stock generated $586,942.
• The GWG Wind Down Trust settled a dispute with Fifth Season Investments, LLC for $8 million. Thus far, the Trust has paid $1,848,738 in cash to Fifth Season, still owing $6,151,262. The GWG Wind Down Trust previously set aside a reserve of 20 million shares of BENF. Those shares currently have a book value of $5.12 million. Accordingly, there is currently a $1 million shortfall, which the GWG Wind Down Trust will need to pay out of its cash holdings, presumably diminishing the cash it received from the sale of two of its three tangible assets.
• The $10.5 million in cash proceeds represents approximately .0065% of the 1,618,517,956 in Series A1 (formerly L Bonds) WDT Interests.
• The third tangible asset owned by the GWG Wind Down Trust is 169,701,487 shares of Beneficient (NASDAQ:BENF).
• The Beneficient share price has dropped significantly since going public at $15 per share. On June 20, 2023, the share price closed at $4.57. By August 1, 2023, the share price closed at $2.00. On February 15, 2024, the share price closed at $0.2561.
• The GWG Wind Down Trust is finding it difficult to sell its shares in Beneficient. There appears to be little to no interest on behalf of investors in purchasing shares of BENF, with shares trading in a very thinly traded market.

We believe that there is no obvious or foreseeable path to monetization for the GWG Wind Down Trust. Beneficient has made the following disclosures since August 2023:

• On June 29, 2023, Beneficient received a “Wells Notice” from the SEC’s Division of Enforcement, stating that the SEC has made a preliminary determination to recommend that the SEC file a civil enforcement action against the company alleging violations of certain provisions of the Securities Act and the Securities Exchange Act relating to the Company’s association with GWG Holdings. In addition, the company’s Founder, CEO, and Chairman, Brad Heppner, also received Wells Notices related to the investigation of GWG Holdings.
• Beneficient sustained an operating loss of $2.45 billion between April 1, 2023, and December 31, 2023.
• As of December 31, 2023, Beneficient only had $11.2 million in unrestricted cash. In mid-2023, Beneficient disclosed that it would meet its ongoing obligations by furloughing and potentially laying off employees.
• As of December 31, 2023, Beneficient’s assets were approximately $500 million, down from $2.9 billion as of 3/31/2023, driven by a goodwill impairment of $2.28 billion.

The only other asset owned by the Wind Down Trust is a beneficial interest in the GWG Litigation Trust. However, the Litigation Trust is only in an information-gathering phase.

When Can GWG L Bond Investors Expect to Receive a Payment (Distribution) from the GWG Wind Down Trust?

The GWG Wind Down Trust has not determined when a distribution will be paid. Distributions can only be paid upon receipt of sufficient cash proceeds from the assets to be able to make a distribution. The sale of the life insurance portfolio and FOXO shares, which generated only $10.5 million in cash, is below the minimal threshold needed for the GWG Wind Down Trust to make a distribution.

The GWG Wind Down Trust has only two more ways to generate cash: (1) the sale of its stock in Beneficient and (2) receiving proceeds from the GWG Litigation Trust. Whether the GWG Wind Down Trust will be able to monetize these two assets remains unknown, and some believe it is doubtful.

However, that has not appeared to stop some brokers from still telling investors that they will receive most or all of their invested capital back. We believe that these assurances are not only false but irresponsible. The GWG Litigation Trustee recently published a letter to GWG Investors where he addressed these unsupported assurances:

Over the past few months, numerous investors have reached out to me inquiring when they will receive their money back because their brokers have assured them they will receive all their money back. To be completely candid, I simply don’t understand how anyone can make any such assurances at this point in time.

To that end, I strongly encourage all GWG investors to consult their own independent counsel to discuss any potential claims they may have against any third parties who may have recommended this investment to them.

To put it simply, no one knows when or if the GWG Wind Down Trust will be able to make any distributions, but the outlook gets bleaker with every update.

How Else Can GWG L Bond Investors Recover Their Investment Losses?

Many GWG L Bond investors have retained securities arbitration law firm Iorio Altamirano LLP to file FINRA arbitration claims against brokerage firms that sold these speculative, high-risk, and illiquid financial products to recover their investment losses. These claims are separate and in addition to the liquidation of GWG through the GWG Wind Down Trust.

We continue to believe that GWG L Bonds investors’ best avenue for potential recovery of losses is to file a separate FINRA arbitration claim against their brokerage firms. Iorio Altamirano LLP has already helped GWG L Bond investors recover nearly $2 million in losses.

If you would like more information about how to file a claim, please respond to this email to schedule a free and confidential consultation.

To read more about our investigation into the sale of GWG L Bonds to retail investors and to watch videos of our GWG Panel Discussions, please visit our investigation page: www.gwglawyer.com

About Iorio Altamirano LLP

Iorio Altamirano LLP is a securities arbitration law firm located in New York, NY. We represent investors nationwide and vigorously pursue FINRA arbitration claims on behalf of investors to recover investment losses.

We have over 20 years of combined experience as securities arbitration lawyers and have helped investors recover investment losses in over 1,000 cases. Our firm will file a FINRA securities arbitration claim on your behalf on a contingency fee basis to try to recover your losses. If we do not obtain a recovery, you do not owe us a legal fee.

If you have invested in L Bonds offered by GWG Holdings, contact securities arbitration lawyers August Iorio at august@ia-law.com or Jorge Altamirano at jorge@ia-law.com. Alternatively, call the firm toll-free at (646) 330-4624.

The law firm’s investigation is ongoing after two separate FINRA arbitration panels awarded investors damages in connection with the sale of L Bonds by their brokers and brokerage firms. In the first case, an arbitration panel in Los Angeles, California, held two brokers liable for their negligence in selling GWG L Bonds to an investor and awarded over $1 million in damages. In the second case, a FINRA arbitration panel in Boston, Massachusetts, awarded an investor $280,000 in damages, finding that brokerage firm Ages Financial Services, LTD was liable for not properly informing the investor about the risks of GWG L Bonds.

Iorio Altamirano LLP represents dozens of GWG L Bond investors across the country and encourages investors who are taking a “wait and see approach” to act now. As the GWG Wind Trustee begins to liquidate GWG’s assets, it is becoming more evident that the GWG L Bonds, now the New Series A1 WDT Interests, are nearly worthless.

In 2020, notwithstanding GWG’s financial challenges and change in business strategy, Centaurus Financial actually increased the amount of GWG L Bonds that it would allow retail investors to purchase. After the cap was raised, many brokers aggressively sold more L Bonds to their clients and encouraged them to invest up to the new maximum limits.

Iorio Altamirano LLP continues to believe that GWG L Bonds investors’ best avenue for potential recovery of losses is to file a separate FINRA arbitration claim against their brokerage firms. Iorio Altamirano LLP has already helped GWG L Bond investors recover over $1.4 million in losses.

Investors who purchased GWG L Bonds through Centaurus Financial or any other broker-dealer are encouraged to contact Iorio Altamirano LLP (www.gwglawyer.com) for a free and confidential consultation and to review their legal rights. We can review and analyze potential claims and advise individuals of their legal rights without obligation or cost.

To read more about GWG L Bonds and the alleged misconduct, please visit our investigation page: Iorio Altamirano LLP’s Investigation of GWG L Bonds.

Centaurus Financial (CRD No. 30833)

Centaurus Financial is a dually registered investment adviser and broker-dealer headquartered in Anaheim, California. The firm is registered in 53 U.S. states and territories and has nearly 600 registered representatives nationwide.

GWG Holdings, Inc. sold the GWG L Bonds through a dealer-manager and a network of regional broker-dealers, including Centaurus Financial, who pitched the products to individual retail investors. GWG’s dealer-manager and selling agents, such as Centaurus Financial, received up to 5% of the principal amount of the GWG L Bonds sold. The selling brokerage firms also received additional compensation and commissions, up to 8% of the aggregate gross proceeds from the sale of GWG L Bonds.

Centaurus Financial was one of the largest sellers of the GWG L Bonds to retail customers between 2018 and 2022, receiving at least $3.6 million in commissions from GWG Holdings for brokerage services. Only Emerson Equity LLC, the dealer-manager, sold more L Bonds to retail investors than Centaurus Financial during this period. Accordingly, we believe that Centaurus Financial sold approximately $70 million in GWG L Bonds during this time period.

Upon information and belief, GWG L Bonds were sold by the following brokers who were associated with Centaurus Financial:

• Marc Korsch, Sarasota, FL (CRD No. 5525226) – Barred from the securities industry.
• Tony Kassaei, Irvine, CA (CRD No. 4375259) – Barred from the securities industry.
• Cindy Lucille Porto Chiellini, Lexington, SC (CRD No. 1015592)
• Katherine Nishnic, Lexington, SC (CRD No. 2499553)
• Atul Makharia, Lexington, SC (CRD No. 5070762)
• Otoo Ramon Bohon, Jr., Tucson, AZ (CRD No. 5677597)
• Gregory Richards, Scottsdale, AZ (CRD No. 288898)
• Steven Nielsen, Gilbert, AZ (CRD No. 4184826)
• George Howard, Germantown, TN (CRD No. 2958866)
• Eric Kuchherzki, Burlingame, CA (CRD No. 2529623)
• Valentino Scott, West Hills, CA (CRD No. 1497615)
• Mark Williams, Carmel, CA (CRD No. 4061842)
• Nicholas Ellis, Tustin, CA (CRD No. 1082891)
• David J. Segarra, Las Vegas, NV (CRD No. 4482059)
• Atul Makharia, Lexington, SC (CRD No. 5070762)
• Donna Payne (Donna Klink), Summerland, CA (CRD No. 1007323)
• William Fuentes, Simi Valley, CA (CRD No. 1330327)
• Dick Coppin, Twain Harte, CA (CRD No. 865875)

Brokers and brokerage firms like Centaurus Financial are required to make investment recommendations that are suitable and in the best interest of their customers. Brokerage firms and financial advisors must also be truthful and disclose all material information and risks of a security when making a recommendation. Retail investors have the right to make an informed decision about whether they are willing to accept the risk of a security. Firms and brokers must also conduct reasonable due diligence on products they offer before recommending them to any clients. When a firm or advisor fails to meet these standards of conduct, they can be held liable for damages.

Trouble with Regulators

Centaurus Financial has repeatedly been sanctioned for running afoul of securities and FINRA rules.

In February 2023, Centaurus Financial agreed to pay a $750,000 civil penalty after the SEC charged the firm in connection with the unsuitable recommendation of variable interest rate structured products to retail customers. The SEC’s order found that Centaurus failed to implement, and its branch manager failed to follow, Centaurus’ customer-specific suitability procedures and that Centaurus violated the broker-dealer books and records provisions of the federal securities laws. The SEC’s order found that Centaurus violated Sections 17(a)(2) and 17(a)(3) of the Securities Act of 1933 (“Securities Act”) and Section 17(a) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rules 17a-4(e)(5), 17a-4(f)(2), and 17a-3(a)(17)(i)(B)(3) thereunder. The SEC concluded that Centaurus failed reasonably to supervise the firm’s brokers.

See: Centaurus Financial Sanctioned and Fined by Regulators for Supervisory Failures for the Second Time in Three Months.

In September 2022, FINRA’s Department of Enforcement filed a civil complaint against Centaurus Financial and one of its brokers. The complaint alleges that the broker sold Unit Investment Trusts (UITs), non-traded real estate investment trusts (REITs), and non-traded business development companies (BDCs) to customers, causing fees and commissions that could have been avoided if the broker, who was also a registered investment advisor, had taken advantage of his investment advisory relationship with the customers. The broker’s conduct allowed him and Centaurus to share in the selling commissions that his customers incurred while providing his customers with no additional benefits. The complaint alleges that the recommendations were unsuitable because there were lower-cost UITS, REITs, and BDCs available. The broker and Centaurus allegedly put their own financial interests ahead of their customers.

In June 2021, the SEC ordered Centaurus Financial to pay $1.2 million over disclosure failures and misleading statements to clients regarding investment advice it gave about mutual funds and cash sweep money market funds. The SEC’s order found that Centaurus Financial engaged in practices that violated its fiduciary duty to its advisory clients, including making misleading statements and providing inadequate disclosures regarding its receipt of 12b-1 fees from client investments, and although Centaurus was eligible to self-report to the SEC, it did not do so. Centaurus Financial consented to a cease-and-desist order and a censure, and agreed to pay disgorgement of $907,377, prejudgment interest of $124,019, and a civil penalty of $250,000. The firm also agreed to distribute funds to harmed clients and comply with certain undertakings.

About Iorio Altamirano LLP

Iorio Altamirano LLP is a securities arbitration law firm located in New York, NY. We represent investors nationwide and vigorously pursue FINRA arbitration claims on behalf of investors to recover investment losses.

We have over 20 years of combined experience as securities arbitration lawyers and have helped investors recover investment losses in over 1,000 cases. Our firm will file a FINRA securities arbitration claim on your behalf on a contingency fee basis to try to recover your losses. If we do not obtain a recovery, you do not owe us a legal fee.

If you have invested in L Bonds offered by GWG Holdings, contact securities arbitration lawyers August Iorio at august@ia-law.com or Jorge Altamirano at jorge@ia-law.com. Alternatively, call the firm toll-free at (646) 330-4624.

Further, over the past month, the share price of Beneficent has continued to fall and is currently trading at approximately $0.60 per share.

We continue to believe that GWG L Bonds investors’ best avenue for potential recovery of losses is to file a separate FINRA arbitration claim against their brokerage firms. Iorio Altamirano LLP has already helped GWG L Bond investors recover over $1.4 million in losses.

If you would like more information about how to file a claim, please contact our firm to schedule a free and confidential consultation.

Original Post:

On October 3, 2023, Liz Freeman, the Trustee of the GWG Wind Down Trust, received approval from the United States Bankruptcy Court for the Southern District of Texas to sell the portfolio of life insurance policies for only $10 million in cash.

The purchaser will also assume the Vida Exit Facility, which has a balance of approximately $605 million. Of the $10 million, $2.9 million will likely be held in Trust for up to three years. There is also ongoing litigation about whether GWG and the Wind Down Trust owe $18 million to a previous debtor-in-possession lender. If the Bankruptcy Court determines that it does, then L bondholders will get nothing from the sale of the portfolio of life insurance policies. At best, though, L Bondholders will collectively receive at most $7 million. That’s only 0.5% of the $1.3 billion in outstanding L bond obligations.

These realities likely led United States Bankruptcy Judge Marin Isgur to conclude that “there is no material recovery that will go out on percentage basis out of the liquidation of this portfolio [of life insurance policies].”

He also stated that he continues “to believe that the [GWG] L Bondholders will lose a very large percentage of their investments.”

That’s likely because the only other two assets held by the GWG Wind Down Trust to be liquidated are (1) 4.6 million shares of common stock in FOXO and (2) 169.7 million shares of common stock in Beneficent, which are close to worthless.

FOXO currently trades around $0.12 per share (giving the shares a book value of $552,000). However, Ms. Freeman testified at the hearing that the “securities are not marketable” and that the company “is evaluating its options, not doing well, and may file for bankruptcy itself.” Stated another way, the asset is nearly worthless at this time.

Beneficent is currently trading at around $1.29 per share. However, the shares have not been marketable. Beneficent’s S1 was approved last week by the SEC, so some restrictions are being lifted. Still, there is no reason to believe that the GWG Wind Down Trust will be able to liquidate its shares for any substantial value. Mr. Freeman testified that there are problems associated with liquidating the shares, including the fact that trading volume has been very low. There does not appear to be a market for 169.7 million shares. Further, many believe that dumping that kind of position onto the market would likely drive Beneficent’s share price to $0.

The only other asset that the GWG Wind Down Trust owns is a beneficiary interest in the GWG Litigation Trust. The GWG Litigation Trust is pursuing legal causes of action against companies and individuals that may have violated laws prior to GWG’s bankruptcy filing. However, any recovery from these legal causes of actions remains unknown and speculative.

The following is a summary of the GWG Wind Down Trust’s Assets:

We continue to believe that GWG L Bonds investors’ best avenue for potential recovery of losses is to file a separate FINRA arbitration claim against their brokerage firms. Iorio Altamirano LLP has already helped GWG L Bond investors recover over $1.4 million in losses.

If you would like more information about how to file a claim, please contact our firm to schedule a free and confidential consultation.

To read more about GWG L Bonds and the alleged misconduct, please visit our other blog posts:

GWG’s Bankruptcy Plan Goes into Effect; GWG L Bonds Canceled

What L Bondholders Need to Know About GWG Holdings, Inc.’s Chapter 11 Plan

Broker-Dealers Sold GWG L Bonds Using Aggressive and Misleading Marketing

“GWG Was a Classic Ponzi Scheme” – Official Committee of Bondholders of GWG Holdings, Inc.

Iorio Altamirano LLP (gwglawyer.com), a law firm that represents retail investors, is representing many GWG L Bond investors against brokerage firms across the country to recover investment losses and damages sustained by those firms’ recommendations to invest in GWG L Bonds. Based on the law firm’s investigation, there appears to have been widespread negligence and misconduct by many brokers and broker-dealers across the country.

For the latest on Iorio Altamirano LLP’s investigation of GWG L Bonds, including a key event timeline, visit our firm’s investigation page: Iorio Altamirano LLP’s Investigation of GWG L Bonds.

About Iorio Altamirano LLP

Iorio Altamirano LLP is a securities arbitration law firm located in New York, NY. We represent investors nationwide and vigorously pursue FINRA arbitration claims on behalf of investors to recover investment losses.

We have over 20 years of combined experience as securities arbitration lawyers and have helped investors recover investment losses in over 1,000 cases. Our firm will file a FINRA securities arbitration claim on your behalf on a contingency fee basis to try to recover your losses. If we do not obtain a recovery, you do not owe us a legal fee.

If you have invested in L Bonds offered by GWG Holdings, contact securities arbitration lawyers August Iorio at august@ia-law.com or Jorge Altamirano at jorge@ia-law.com. Alternatively, call the firm toll-free at (646) 330-4624.

As part of the Plan, GWG will be liquidated, and two liquidating trusts have been created: (i) the Wind Down Trust and (ii) the Litigation Trust.

As a result of the Plan going into effect, all securities issued by GWG, including GWG L Bonds, were canceled. L Bondholders received “New Series A1 WDT Interests” in the Wind Down Trusts.

For GWG L Bondholders whose L Bonds were held of record in the name of a bank, broker, or other holder of record through the facilities of the Depository Trust Company), the New WDT Interests will continue to be held in the same manner. GWG recommends that investors contact their bank, broker, or other record holder for further information.

For GWG L Bondholders whose L Bonds were held directly, the New WDT Interests will continue to be held directly. Computershare Trust Company, N.A. (“Computershare”) has been appointed as the transfer agent and registrar for New WDT Interests, and direct holders may access further information with respect to their New WDT Interests as described below:

• If a direct GWG L Bondholder already has an existing Computershare account under the same name and Tax ID as shown on the statement mailed to the bondholder by Computershare, the units of New Series WDT Interests will be automatically added to that bondholders’ account on Investor Center, Computershare’s online and mobile portal to your portfolio.
• If a direct GWG L Bondholder does not have an existing Computershare account, they should register for an account at www.computershare.com/investor. These bondholders will need their “Account Number,” which can be found on the statement mailed to you by Computershare. and direct holders may access further information with respect to their New WDT Interests as described below.

What are GWG’s Assets?

GWG has only four primary assets: (1) its portfolio of life insurance policies; (2) equity interest in FOXO, (3) equity interest in Beneficient; and (4) potential legal actions against third parties, primarily Beneficent.

The Wind Down Trust will hold the portfolio of life insurance policies and the company’s equity interests in FOXO and Beneficent and make efforts to monetize those assets over time. The sale of these assets may take several years, and the amount that GWG will recover remains uncertain.

According to GWG’s analysis in the bankruptcy proceedings, the projected net residual value from the sale of the life insurance policies is projected to be $0 to $78 million, and the equity interest in FOXO is nominal, $3.3 million.

With over $1.3 billion owed to L Bondholders, for the L Bonds (now New Series A1 WDT Interests) to have any significant residual value, GWG must monetize its equity interest in Beneficient or its legal claims against third parties.

How and when GWG will be able to monetize its equity interest in Beneficient remains uncertain and speculative.

Since going public on June 8, 2023, and opening at $15 on the first day the new BENF traded, the stock price has plummeted to under $2 per share.

To read more about the residual value of the L Bonds, please see our blog post from mid-July: GWG Bankruptcy Update (July 14, 2023): The Residual Value of the GWG L Bonds Remain Suspect as Beneficient Receives a Wells Notice from the SEC.

We continue to believe that GWG L Bonds investors’ best avenue for potential recovery of losses is to file a separate FINRA arbitration claim against their brokerage firms. If you would like more information about how to file a claim, please respond to this email to schedule a free and confidential consultation.

To read more about the alleged misconduct, please visit our other blog posts:

What L Bondholders Need to Know About GWG Holdings, Inc.’s Chapter 11 Plan

Broker-Dealers Sold GWG L Bonds Using Aggressive and Misleading Marketing

“GWG Was a Classic Ponzi Scheme” – Official Committee of Bondholders of GWG Holdings, Inc.

Iorio Altamirano LLP (gwglawyer.com), a law firm that represents retail investors, is representing many GWG L Bond investors against brokerage firms across the country to recover investment losses and damages sustained by those firms’ recommendations to invest in GWG L Bonds. Based on the law firm’s investigation, there appears to have been widespread negligence and misconduct by many brokers and broker-dealers across the country. Iorio Altamirano LLP has already helped GWG L Bond investors recover nearly $1 million in losses.

For the latest on Iorio Altamirano LLP’s investigation of GWG L Bonds, including a key event timeline, visit our firm’s investigation page: Iorio Altamirano LLP’s Investigation of GWG L Bonds.

About Iorio Altamirano LLP

Iorio Altamirano LLP is a securities arbitration law firm located in New York, NY. We represent investors nationwide and vigorously pursue FINRA arbitration claims on behalf of investors to recover investment losses.

We have over 20 years of combined experience as securities arbitration lawyers and have helped investors recover investment losses in over 1,000 cases. Our firm will file a FINRA securities arbitration claim on your behalf on a contingency fee basis to try to recover your losses. If we do not obtain a recovery, you do not owe us a legal fee.

If you have invested in L Bonds offered by GWG Holdings, contact securities arbitration lawyers August Iorio at august@ia-law.com or Jorge Altamirano at jorge@ia-law.com. Alternatively, call the firm toll-free at (646) 330-4624.

GWG has disclosed that they are targeting July 31, 2023, as the effective date for the Plan.

As part of the Chapter 11 Plan, GWG will no longer operate as an ongoing concern. Instead, the Chapter 11 Plan provides that the GWG will be liquidated, and two liquidating trusts will be created: (i) the Wind Down Trust and (ii) the Litigation Trust.

The Wind Down Trust will take all necessary steps to wind down the business affairs of the Debtors and liquidate the Wind Down Trust Assets. Both the Wind Down Trust and the Litigation Trust have initial three-year terms, which can be extended an additional two years.

While the L Bondholders are going to receive “New Series A1 WDT Interests” in the Wind Down Trusts, the primary issue is that GWG’s current tangible assets are dwarfed by outstanding L Bond obligations, and GWG’s remaining assets are going to take some time to monetize, if ever.

GWG has only four assets: (1) its portfolio of life insurance policies; (2) equity interest in FOXO, (3) equity interest in Beneficient; and (4) potential legal actions against third parties, primarily Beneficent.

According to GWG’s analysis in the bankruptcy proceeding, the projected net residual value from the sale of the life insurance policies is projected to be $0 to $78 million, and the equity interest in FOXO is nominal, $3.3 million.

For L Bonds to have any significant residual value, GWG must monetize its equity interest in Beneficient or its legal claims against third parties. It is very likely and possible that L bondholders receive nothing from GWG’s interests in Beneficent or its retained causes of action, and if they do, it will likely take several years to result in cash distributions.

How and when GWG will be able to monetize its equity interest in Beneficient remains uncertain and speculative.

Since going public on June 8, 2023, and opening at $15 on the first day the new BENF traded, the stock price has plummeted.

BENF ended the trading day with a closing price of $2.87 on July 13, 2023.

Based on historical trading volume data, it would take 3.5 years to sell the bondholders’ approximately 155 million to 165 million shares.

According to at least one expert, BNEF is likely worth $0 as a result of its poor fundamentals:

• Beneficient values its portfolio of private equity investments at $547.8 million and has $21.8 million in restricted cash as of December 31, 2022. It has $242.6 million in liabilities, so it has tangible net assets of $327 million.
• There are $684 million in non-controlling interests and $251 million in redeemable non-controlling interests on BENF’s balance sheet.
• The tangible net assets available to non-controlling interests and common stockholders is $1.727 per share of common stock, although some or all of the tangible net assets would be payable to the non-controlling interests. If the non-controlling interests are senior to common stockholders, the tangible net assets available to common stockholders is -$3.212 per share.
• BENF reports 80% of its total assets are goodwill. The only way BENF can be worth some positive value after things settle down is if BENF’s $2.37 billion accounting goodwill reflects a substantial market valuation of BENF’s intellectual property.

Since this report, Beneficient has filed its 10-K annual report with the SEC disclosing additional worrisome news:

• For Year-End March 31, 2023, Beneficent had a net operating loss of $253 million.
• A substantial amount of Beneficient’s assets is comprised of goodwill and intangible assets. The sustained decline in the price of BNF since going public on June 8, 2023, is an indicator that impairment is present and may require assessment. In plain English, BENF will likely need to reduce the amount of its goodwill early next year, possibly significantly, thus reducing the amount of assets held by the company.
• On June 29, 2023, Beneficient received a “Wells Notice” from the SEC’s Division of Enforcement, stating that the SEC has made a preliminary determination to recommend that the SEC file a civil enforcement action against the company alleging violations of certain provisions of the Securities Act and the Securities Exchange Act relating to the Company’s association with GWG Holdings. In addition, the company’s Founder, CEO, and Chairman, Brad Heppner, also received Wells Notices related to the investigation of GWG Holdings.

Based on historical trading volume and pricing data and the recent news, BENF stock price could continue to drop o, and any attempt by the L Bondholders’ trust to sell millions of GWG’s shares could drive the price close to $0.

According to the expert, ultimately, bondholders will likely receive negligible amounts – perhaps $1 per share – for their GWG common stock. Even this amount cannot be achieved in open market transactions when the market is not absorbing total sales of 100,000 to 200,000 shares per day. Only through a bulk sale of a large controlling interest can the bondholders’ trust hope to realize even $150 million. Moreover, based on the projections provided in GWG’s Chapter 11 Plan, a recovery of $150 million through block stock sales pays bondholders 9 cents on the dollar.

Based on the information outlined above, we believe it is highly unlikely that they will obtain a quick and full recovery through the bankruptcy process.

We also continue to believe that GWG L Bonds investors’ best avenue for potential recovery of losses is to file a separate FINRA arbitration claim against their brokerage firms. If you would like more information about how to file a claim, please contact our firm to schedule a free and confidential consultation.

To read more about the alleged misconduct, please visit our other blog posts:

What L Bondholders Need to Know About GWG Holdings, Inc.’s Chapter 11 Plan

Broker-Dealers Sold GWG L Bonds Using Aggressive and Misleading Marketing

“GWG Was a Classic Ponzi Scheme” – Official Committee of Bondholders of GWG Holdings, Inc.

Iorio Altamirano LLP (gwglawyer.com), a law firm that represents retail investors, is representing many GWG L Bond investors against brokerage firms across the country to recover investment losses and damages sustained by those firms’ recommendations to invest in GWG L Bonds. Based on the law firm’s investigation, there appears to have been widespread negligence and misconduct by many brokers and broker-dealers across the country.

For the latest on Iorio Altamirano LLP’s investigation of GWG L Bonds, including a key event timeline, visit our firm’s investigation page: Iorio Altamirano LLP’s Investigation of GWG L Bonds.

About Iorio Altamirano LLP

Iorio Altamirano LLP is a securities arbitration law firm located in New York, NY. We represent investors nationwide and vigorously pursue FINRA arbitration claims on behalf of investors to recover investment losses.

We have over 20 years of combined experience as securities arbitration lawyers and have helped investors recover investment losses in over 1,000 cases. Our firm will file a FINRA securities arbitration claim on your behalf on a contingency fee basis to try to recover your losses. If we do not obtain a recovery, you do not owe us a legal fee.

If you have invested in L Bonds offered by GWG Holdings, contact securities arbitration lawyers August Iorio at august@ia-law.com or Jorge Altamirano at jorge@ia-law.com. Alternatively, call the firm toll-free at (646) 330-4624.

The Plan will now be sent to creditors, including L Bondholders, to accept or reject the Plan. GWG’s Plan is essentially an “orderly” liquidation. If the Plan is accepted, GWG will be liquidated in accordance with the terms of the Plan. If the Plan is rejected, GWG will likely be liquidated in accordance with Chapter 7 of the United States Bankruptcy Code. Either way, GWG will be liquidated and will not continue as a business. Creditors will need to decide which path of liquidation will be more favorable to them.

We believe that it is highly unlikely that L Bondholders will obtain a quick and full recovery through either the Chapter 11 Plan or a Chapter 7 liquidation.

Accordingly, Iorio Altamirano LLP encourages L bondholders to contact the firm to evaluate their other legal options to recover their investment losses.

L bondholders with meritorious claims may also be able to obtain some relief and recovery by filing a claim against their brokerage firm. These claims are separate and in addition to GWG’s bankruptcy proceeding. Nothing prevents an investor from filing a claim against their brokerage firm for breaching their duties and also collecting through the bankruptcy proceeding.

Iorio Altamirano LLP represents GWG L Bondholders throughout the country in FINRA arbitration claims against the brokerage firms and financial advisors that recommended and sold the L Bonds to retail investors.

GWG sold the L bonds through Emerson Equity LLC and a network of regional broker-dealers, including Centaurus Financial, Inc., Great Point Capital LLC, National Securities Corporation, Western International Securities, Inc., Aegis Capital, LLC, Newbridge Securities Corporation, Dempsey Lord Smith LLC, Coastal Equities, Inc., International Assets Advisory, LLC, Arete Wealth Management, LLC, Westpark Capital, Incl, Ausdal Financial Partners, Inc., Moloney Securities, Center Street Securities, NI Advisors, Inc., Intervest International Equities Corporation, Cabot Lodge Securities, LLC, Portsmouth Financial Services, Capital Investment Group, Inc., Lifemark Securities, Corp., American Trust Investment Services, Inc., IFP Securities, LLC, Kingswood Capital Partners, LLC, SW Financial, Paulson Investment Company LLC, Ages Financial Services, Ltd., Independence Capital, Co., Inc., Landolt Securities, Inc., JRL Capital Corporation, TFS Securities, and American Equity Investment Corporation.

What’s in GWG Holding, Inc.’s Chapter 11 Reorganization Plan?

Under the Plan, GWG will be liquidated through an “orderly wind-down.”

Two liquidating trusts will be established: (i) a Wind-Down Trust and (ii) a Litigation Trust.

The Wind Down Trust will issue trust interests (the New WDT Interests) to creditors. L Bondholders will exchange their current L Bonds for New Series A1Trust interests.

A Wind-Down Trust will be established to take all necessary steps to wind down GWG’s business affairs and monetize GWG’s non-litigation assets. The term of the Wind-Down Trust will be three (3) years. The term may be extended by court approval for up to two (2) additional years.

GWG’s primary non-litigation assets are its (i) portfolio of life insurance policies (the “Policy Portfolio”); and (ii) passive non-controlling equity interest in The Beneficient Company Group, L.P. (“Ben LP” and, together with its subsidiaries, “Beneficient”) and FOXO Technologies, Inc. (“FOXO”).

The Litigation Trust will receive all of GWG’s litigation claims and all of GWG’s interests in the D&O Liability Insurance Policies. The Litigation Trustee will pursue legal claims or settlements for the benefit of the estate. The potential claims and causes of action arise under or relate to transactions, relationships, or conduct involving GWG and third parties, including, without limitation, Beneficient and current and former directors and officers of GWG that occurred prior to the filing of the Chapter 11 bankruptcy proceeding.

The Plan is a “waterfall” plan, which means that, in general, the L Bondholders are first in line to receive distributions from the Wind Down Trust (subject to certain limited exceptions), and the L Bondholders and general unsecured creditors, pro rata, are first in line to receive distributions on account of the success of monetizing the litigation assets.

See Also: GWG Bankruptcy Update (April 17, 2023): Liquidation Options Become Clearer as Recovery for Bondholders Remain Uncertain.

How and when will L Bondholders be paid?

GWG currently does not have cash available to make L Bondholders whole or close to whole. The financial situation of GWG is bad, which is why it filed for Chapter 11 bankruptcy.

L Bondholders will receive senior-most interests in the Wind Down Trust (called “New Series A1 WDT Interest.” Those interests will entitle each L Bondholder to future cash distributions if GWG can monetize its assets.

L Bondholders will receive payments over time. The timing and amount of the cash distributions remain extremely uncertain and will likely take multiple years to be settled.

The uncertainty and long wait period are due to the type of assets held by GWG. GWG does not have significant tangible assets that it can sell to raise cash and return to creditors, including L Bondholders.

GWG’s assets consist of the following: (i) the portfolio of life insurance policies owned by GWG, (ii) GWG’s equity interest in Beneficient, (ii) GWG’s equity in interest in FOXO, and (iv) GWG’s potential legal actions against third parties.

The portfolio of life insurance policies owned by GWG that will be sold will not lead to a significant recovery of capital to L Bondholders. The net residual equity interest in the Polity Portfolio has a present value ranging from approximately $0 to $78 million. That means that L Bondholders will receive anywhere from $0 to $78 million from the sale of the life insurance policies. If GWG is able to distribute $78 million to L Bondholders, that would likely lead to a return of 4-6% to L Bondholders.

The equity interest in FOXO is nominal ($3.3 million) compared to GWG’s outstanding obligations owed to L Bondholders ($1.6 billion).

For L Bondholders to receive significant cash distributions, they depend on either Beneficient’s business success or GWG’s ability to monetize its legal claims against third parties, including Beneficient (a catch-22 with inherent conflicts of interest).

The ability of the Wind Down Trust and Litigation Trust to receive cash for these assets, and the amount of cash that may be received and distributed to Bondholders, is subject to the risks set forth below and others discussed in greater detail in the revised Disclosure Statement. The following is a summary of some of those risks:

GWG estimates that the total amount that L Bondholders will recover will be between 3.9% and 100%. The very broad range is due to the nature of GWG’s assets and the uncertainty as to whether GWG will be able to monetize its equity interest in Beneficient or its litigation assets.

The truth is, no one knows the exact amount that L Bondholdres will receive through the liquidation process, and it’s going to take a long time for that to be settled.

Upcoming Deadlines

As part of the Court’s order on April 21, 2023, the following confirmation deadline has been set:

• April 28, 2023: Solicitation Deadline. Deadline for GWG to distribute “Solicitation Packages” to creditors, including L Bondholders. The Solicitation Packages will include links to GWG’s Chapter 11 Plan and Disclosure Statement, which explain the Chapter 11 Plan in detail. L Bondholders will also receive a plain-English summary of the treatment of L Bondholder claims.
• May 31, 2023, at 4:00 p.m. CT: Voting Deadline. Deadline for Donlin, Recano, & Company, Inc. to actually receive probably executed and completed ballots from all eligible creditors, including L Bondholders.
• June 12, 2023: Deadline to file Voting Report. Deadline for GWG to file a report tabulating the voting of the Plan.
• June 15, 2023, at 1:30 p.m. CT: Confirmation Hearing. Date of the Confirmation Hearing at which the Court will consider Confirmation of the Plan.

All L Bondholders can vote on the Plan by submitting a ballot that they will receive along with the other solicitation materials. Each ballot will state the principal amount of the L Bonds that the bondholder owned as of February 24, 2023, based on GWG’s records.

The voting deadline is May 31, 2023, at 4:00 p.m. CT.

L Bondholders can vote for acceptance or rejection of the Plan. If the Plan is approved, the Court will have a hearing on June 15, 2023, at 1:30 p.m. CT to confirm the Plan. It will likely take an additional two to three months for GWG to exit bankruptcy.

If the Plan is not accepted, the most likely outcome is that GWG’s Chapter 11 bankruptcy proceeding (restructuring) will be converted to a Chapter 7 bankruptcy proceeding (liquidation), and GWG’s assets will be liquidated under Chapter 7 of the Bankruptcy Code.

GWG believes that less money would be available for distribution to L Bondholders under Chapter 7 liquidation, as opposed to the “orderly liquidation” proposed in the Plan.

Can L Bondholders do anything else?

Yes. Many L Bondholders have filed separate, independent arbitration claims against their broker-dealer, who received a large commission for selling the L Bonds to retail investors. These arbitration claims are in addition to the GWG bankruptcy proceeding.

When a broker makes an investment recommendation, the broker must make a recommendation that is suitable and in the customer’s best interest. When brokers make a recommendation, they must also be truthful and disclose all material information, which they must learn through reasonable due diligence. When a firm or advisor fails to meet these standards of conduct, they can be held liable for damages.

Based on the law firm’s investigation, there appears to have been widespread negligence and misconduct connected with the sale of GWG L Bonds to retail investors, specifically related to what was and was not disclosed to investors at the time the broker made the recommendation to purchase the L Bonds.

For more information about potential broker-dealer liability, you may wish to read these recent blog posts:

• Broker-Dealers Sold GWG L Bonds Using Aggressive and Misleading Marketing
• SEC Finds That Some Broker-Dealers Are Using Outdated, Incomplete, and Inaccurate Risk Disclosures

Investors who purchased GWG L Bonds through a financial advisor are encouraged to contact Iorio Altamirano LLP (gwglawyer.com) for a free and confidential consultation and to review their legal rights. We can review and analyze potential claims and advise individuals of their legal rights without obligation or cost.

How much does it cost to hire a securities arbitration attorney?

Nothing, there is no up-front cost. We represent individuals on a contingency fee basis. That is, our fee is contingent upon getting you a monetary recovery. If we do not obtain a recovery, we do not collect a fee.

Further, there is no out-of-pocket cost to clients to initiate an arbitration claim to recover GWG L Bond losses.

Helping investors recover investment losses is our primary focus. We have already helped GWG L Bond investors recover their losses and continue to do so. You can read more about how we helped a 75-year-old retiree recover her losses here: GWG L Bond Investor Recovers Losses After Filing a FINRA Arbitration Claim.

If you have already retained legal counsel or would prefer not to receive future correspondence from our law firm related to GWG L Bonds, please let us know, and we will be happy to comply with your request.

About Iorio Altamirano LLP

Iorio Altamirano LLP is a securities arbitration law firm located in New York, NY. We represent investors nationwide and vigorously pursue FINRA arbitration claims on behalf of investors to recover investment losses.

We have over 20 years of combined experience as securities arbitration lawyers and have helped investors recover investment losses in over 1,000 cases. Our firm will file a FINRA securities arbitration claim on your behalf on a contingency fee basis to try to recover your losses. If we do not obtain a recovery, you do not owe us a legal fee.

If you have invested in L Bonds offered by GWG Holdings, contact securities arbitration lawyers August Iorio at august@ia-law.com or Jorge Altamirano at jorge@ia-law.com. Alternatively, call the firm toll-free at (646) 330-4624.

Original Post:

GWG Bankruptcy Update (April 17, 2023): Liquidation Options Become Clearer as Recovery for Bondholders Remain Uncertain

In court filings on April 17, 2023, GWG submitted a Revised Disclosure Statement for its Second Amended Reorganization Plan after United States Bankruptcy Judge Marvin Isgur ordered the Chapter 11 debtor to provide L Bondholders with more information about potential recoveries before he approves sending a Disclosure Statement to creditors to vote on the Second Amended Reorganization Plan. It is believed that if the Second Amended Reorganization Plan is not accepted by creditors, GWG would likely convert to a Chapter 7 bankruptcy proceeding, liquidating the company through the Bankruptcy Code.

In either case, GWG is to be liquidated. Creditors need to decide which path of liquidation will be more favorable for them. While the Revised Disclosure Statement does provide creditors with valuable information to evaluate their options to vote for the Chapter 11 plan or reject it, which likely means a Chapter 7 liquidation, the amount bondholders will recover under the proposed restructuring plan remains extremely uncertain and will likely take multiple years to be settled.

In the court filings, GWG makes clear that the company does NOT have cash available to repay L Bondholders now. In the latest draft of the Summary of Treatment of Bondholders Under the Debtors’ Second Amended Joint Chapter 11 Plan, GWG provides: The Debtors understand and fully appreciate that Bondholders want to be repaid now the amounts that are owed to them. Unfortunately, the Debtors regret that this is not possible now because the Debtors do not have the cash available that would allow them to do so.

As GWG Holdings, Inc. continues to navigate the bankruptcy process, Iorio Altamirano LLP (gwglawyer.com) encourages L bondholders to contact the firm for a free and confidential consultation and to evaluate their other legal options to recover their investment losses. We can review and analyze potential claims and advise individuals of their legal rights without obligation or cost. Iorio Altamirano LLP represents GWG L Bondholders throughout the country in FINRA arbitration claims against the brokerage firms and financial advisors that recommended and sold the L Bonds to retail investors.

GWG’s Second Amended Reorganization Plan

Below is a high-level summary of GWG’s Second Amended Reorganization Plan based on recent court filings:

• Under the Second Amended Reorganization Plan, GWG will be liquidated through an “orderly wind-down.”
• Two liquidating trusts will be established: (i) a Wind-Down Trust and (ii) a Litigation Trust.
• The Wind Down Trust will issue trust interests (the New WDT Interests) to creditors. L Bondholders will exchange their current L Bonds for New Series A1Trust interests.
• A Wind-Down Trust will be established to take all necessary steps to wind down GWG’s business affairs and monetize GWG’s non-litigation assets. The term of the Wind-Down Trust will be three (3) years. The term may be extended by court approval for up to two (2) additional years.
• GWG’s primary non-litigation assets are its (i) portfolio of life insurance policies (the “Policy Portfolio”); and (ii) passive non-controlling equity interest in The Beneficient Company Group, L.P. (“Ben LP” and, together with its subsidiaries, “Beneficient”) and FOXO Technologies, Inc. (“FOXO”).
• The entire Policy Portfolio is currently collateral for the VIDA DIP Facility and is expected to be collateral for the Vida Exit Financing Facility.
• The net residual equity interest in the Polity Portfolio has a present value ranging from approximately $0 to $78 million.
• The price per share of FOXO’s common stock as of market close on April 14, 2023, was $0.71, which implies that the Debtors’ interests in FOXO have a value of approximately $3.26 million, assuming that a purchaser could be found for such interests.
• GWG owns a passive non-controlling equity interest in Beneficient, which is junior to approximately $1.4 billion of senior debt and senior preferred equity held by certain founders of Beneficient.
• On September 21, 2022, Beneficient announced that it had signed a business combination agreement with Avalon Acquisition Inc. (“Avalon”), a publicly-traded special purpose acquisition company (“SPAC”). The Avalon Business Combination is not yet final and may or may not be completed on the terms announced or at all. The transaction is subject to certain conditions, including the GWG’s consent (which has not yet been given), that must either be satisfied or waived prior to closing. Further, the asserted $3.5 billion implied enterprise valuation with respect to the SPAC Implied Valuation may or may not prove to be accurate. To the extent, the Avalon Business Combination is consummated, and to the extent the SPACE Implied Valuation is accurate, GWG’s interests in Beneficient would result upon completion of the Avalon Business Combination in an ownership interest in New Beneficient with a nominal value equal to approximately $1.4 billion.
• Such nominal value, however, may or may not result in distributable value to creditors, including L Bondholders.
• The value of the Company’s equity interests in New Beneficient will be subject to constant public market valuation and could be worth significantly less.
• It is important to note that market prices associated with equity interests issued in connection with the consummation of business combinations with special purpose acquisition companies have been particularly volatile over the last twelve months.
• Furthermore, as is customary in business combination transactions with special purpose acquisition companies, any equity interests of New Beneficient received by GWG upon the consummation of the Avalon Business Combination will likely be subject to customary “lock-up” restrictions, which typically include time-based restrictions on disposition before such equity interests may be monetized. These restrictions, or other restrictions that may be imposed may further reduce or eliminate any value associated with such equity interests.
• Beneficient may incur additional debt or issue securities that rank senior to, or pari passu with, the Wind Down Debtors’ expected interests in Beneficient following the Avalon Business Combination
• Stated another way, the value of GWG’s interests in Beneficient is uncertain.
• There are numerous risk factors disclosed by Beneficient in the Ben S-4 that could materially impact the value of the GWG’s interests in Beneficient and/or Beneficient’s ability to consummate the Avalon Business Combination, including the following:
• Beneficient disclosed that it has “not historically generated positive cash flow from operations” and “believe[s] that [it] will need substantial additional capital to fund [its] business plan.” GWG is unaware of any third parties that have agreed to make a significant cash investment in Beneficient, and, therefore, it is uncertain whether Beneficient will be able to obtain the “substantial additional capital” it needs. Beneficient disclosed that if it is “unable to obtain capital . . . [Beneficient] may be unable to continue building [its] business and as a result may be required to scale back or cease operations for [its] business, the result of which may be that you could lose some or all of your investment.”
• Beneficient disclosed that the company is under an active investigation by the SEC, which has sought information related to, among other things, the issuance of Bonds, the consolidation for financial reporting purposes of Beneficient and the company, goodwill valuation, accounting related to the trusts through which Beneficient operates its business, related party transactions, and the calculation of the debt-coverage ratio.
• GWG’s estimate of the value of its interests in Beneficient ranges from $0 to $1.428 billion. GWG believes the large range is warranted given the uncertainty and lack of information regarding Beneficient. The potential for the Avalon Business Combination to be consummated, while relevant, does not necessarily provide any additional certainty regarding the value of the GWG’s interests in Beneficient. Although GWG has used the SPAC Implied Valuation as the high end of the range of potential value, GWG believes it is important to note that the SPAC Implied Valuation was the result of negotiations between Beneficient and Avalon. GWG does not have sufficient information to perform an independent valuation analysis. Based on the current information available, the Bondholder Committee believes that no weight should be given to the SPAC Implied Valuation.

Wind-Down Trust’s Assets:

* Based on current information available, the Official Committee of Bondholders believes that no weight should be given to the $1.4 billion value.

• The second trust, the Litigation Trust, will hold all non-released litigation assets, as well as GWG’s interest in any insurance policies covering directors and officers of GWG.
• The estimated potential recoveries from the pursuit of the retained causes of action depend on a significant part of the assumed valuation of GWG’s interest in Beneficient at the time of the transaction.
• The Investigations Committee and the Bondholder Committee believe that distributable value to the estate from litigation of the Retained Causes of Action (excluding potential damages associated with Ponzi Scheme allegations), in the form of recoveries from the D&O Liability Insurance Policies and from putative third-party defendants, could result in between $155 million and $399 million assuming a “Low” valuation of Beneficient and $99 million and $382 million assuming a “High” valuation of Beneficient.
• Neither the Investigations Committee nor the Bondholder Committee makes any representation as to whether the Litigation Trust will ultimately be successful or unsuccessful in pursuit of any of the Retained Causes of Action. Litigation is inherently uncertain, and the ability of the Litigation Trust to collect the potential damages set forth herein will depend upon a number of factors, including the probability of success in litigation, the difficulties in the collection, and the expense and delay of litigation.

A large recovery for L Bondholders is dependent upon either the success of Beneficient or GWG being able to monetize its legal claims against third parties, including Beneficent. A catch-22. Regardless, it’s likely to take years for everything to be sorted out.

As GWG Holdings, Inc. continues to navigate the bankruptcy process, with many questions remaining for L bondholders, our law firm remains ready to help GWG L bond investors file meritorious arbitration claims to recover their losses against broker-dealers. We continue to help GWG L Bond investors recover their losses.

To read more about the alleged misconduct, please visit our other blog posts:

Broker-Dealers Sold GWG L Bonds Using Aggressive and Misleading Marketing

“GWG Was a Classic Ponzi Scheme” – Official Committee of Bondholders of GWG Holdings, Inc.

Iorio Altamirano LLP (gwglawyer.com), a law firm that represents retail investors, is representing many GWG L Bond investors against brokerage firms across the country to recover investment losses and damages sustained by those firms’ recommendations to invest in GWG L Bonds. Based on the law firm’s investigation, there appears to have been widespread negligence and misconduct by many brokers and broker-dealers across the country.

For the latest on Iorio Altamirano LLP’s investigation of GWG L Bonds, including a key event timeline, visit our firm’s investigation page: Iorio Altamirano LLP’s Investigation of GWG L Bonds.

About Iorio Altamirano LLP

Iorio Altamirano LLP is a securities arbitration law firm located in New York, NY. We represent investors nationwide and vigorously pursue FINRA arbitration claims on behalf of investors to recover investment losses.

We have over 20 years of combined experience as securities arbitration lawyers and have helped investors recover investment losses in over 1,000 cases. Our firm will file a FINRA securities arbitration claim on your behalf on a contingency fee basis to try to recover your losses. If we do not obtain a recovery, you do not owe us a legal fee.

If you have invested in L Bonds offered by GWG Holdings, contact securities arbitration lawyers August Iorio at august@ia-law.com or Jorge Altamirano at jorge@ia-law.com. Alternatively, call the firm toll-free at (646) 330-4624.

GWG Holdings, Inc., which stopped making interest and maturity payments to GWG L Bond investors in January 2022, filed for Chapter 11 bankruptcy in April 2022.

According to court filings, in the four years before the bankruptcy filing, Western International Securities received at least $3 million in commissions from GWG Holdings for selling L Bonds to retail investors, and the firm sold approximately $13.3 million in L Bonds to retail investors between June 2020 and January 2022.

Earlier this year, the law firm filed a six-figure FINRA arbitration claim against Western International Securities connected with the sale of L Bonds. According to the claim, Western International and its broker, Heath Goldstein, allegedly gave unsuitable recommendations to a permanently disabled quadriplegic, who is 52 years old, by advising her to invest a significant portion of her irreplaceable financial assets into speculative, high-risk, illiquid, and unrated L Bonds issued by GWG Holdings, Inc. (“GWG Holdings”).

The FINRA arbitration complaint comes after the United States Securities and Exchange Commission (“SEC”) filed a lawsuit against Western International Securities and several of its brokers in federal court in June 2022 concerning the sale of L Bonds to retail customers. The firm is accused of failing to perform due diligence regarding the inherent risks associated with L Bonds issued by GWG Holdings, Inc.

The complaint alleges that Western International Securities’ brokers misunderstood important issues regarding GWG Holdings, Inc. and the GWG L Bonds, including that GWG significantly changed its business model beginning in 2018 and that GWG L Bonds were not directly collateralized by life insurance policies. According to the complaint, the brokers did not understand the product they were selling because Western International Securities did not provide them with updated and adequate training or with the due diligence report that it had commissioned to be completed. As a result, the brokers allegedly recommended GWG L Bonds to retail customers without a reasonable basis to believe that the investments were in the customers’ best interest.

Investors who purchased GWG L Bonds through Heath Goldstein, Western International Securities, or any other broker-dealer are encouraged to contact Iorio Altamirano LLP (gwglawyer.com) for a free and confidential consultation and to review their legal rights. We can review and analyze potential claims and advise individuals of their legal rights without obligation or cost.

Heath Goldstein (CRD No. 3031995)

Heath Goldstein has 22 years of experience in the securities industry and has been registered with Western International Securities, Inc. as a broker since June 2016.

Mr. Goldstein is also a registered investment advisor with Western International Securities and 1st Financial Investment, Inc, an investment advisory firm he owns with family members in Clark’s Summit, PA.

According to his public disclosure report, Mr. Goldstein has been the subject of at least nine customer disputes, including six disputes related to securities issued by GWG Holdings.

About the L Bonds & Brokerage Firm Liability

An L bond is a specialty high-yield bond created and issued by GWG Holdings. The L Bonds are speculative, high-risk, and illiquid securities that were sold as alternative investments.

Brokerage firms are required to make investment recommendations that are in the best interest of their customers. Financial advisors also have an obligation to be truthful and disclose all material facts and risks to customers when making investment recommendations. Firms and brokers must also conduct reasonable due diligence on the securities they offer before recommending them to customers. Iorio Altamirano LLP is investigating whether Mr. Goldstein and Western International Securities met these obligations in connection with their sale of L Bonds to retail investors.

About Iorio Altamirano LLP

Iorio Altamirano LLP is a securities arbitration law firm in New York, NY. We represent investors nationwide and vigorously pursue FINRA arbitration claims on behalf of investors to recover investment losses.

We have over 20 years of combined experience as securities arbitration lawyers and have helped investors recover investment losses in over 1,000 cases. Our firm will file a FINRA securities arbitration claim on your behalf on a contingency fee basis to try to recover your losses. If we do not obtain a recovery, you do not owe us a legal fee.

If you have invested in GWG L Bonds due to a recommendation by Heath Goldstein or Western International Securities, contact securities arbitration lawyers August Iorio at august@ia-law.com or Jorge Altamirano at jorge@ia-law.com. Alternatively, you may reach the firm by phone toll-free at (646) 330-4624.

See Also:

GWG Bankruptcy Update (March 14, 2023): GWG Appears to be Headed Toward Liquidation

Broker-Dealers Sold GWG L Bonds Using Aggressive and Misleading Marketing

“GWG Was a Classic Ponzi Scheme” – Official Committee of Bondholders of GWG Holdings, Inc.

Western International Securities Denies Violating Regulation Best Interest in Recommending and Selling Risky and Illiquid GWG L Bonds to Retail Investors

Certified Financial Planner Board Suspends Western International Securities Broker Patrick Egan After SEC Charges Related to Selling GWG L Bonds

Law Firm Investigating the Sale of GWG L Bonds to Retail Investors by Western International Securities, Inc.

**Update – April 13, 2023:** On April 13, 2023, GWG submitted a revised Disclosure Statement for its Second Amended Reorganization Plan that provides creditors with more information about potential recoveries. However, the amount bondholders will recover under the proposed restructuring plan remains extremely uncertain and will likely take multiple years to bear fruit. To read more, check out our latest blog post: GWG Bankruptcy Update (April 17, 2023): Liquidation Options Become Clearer as Recovery for Bondholders Remain Uncertain

As GWG Holdings, Inc. continues to navigate the bankruptcy process, Iorio Altamirano LLP urges L bondholders to contact the firm to evaluate their other legal options to recover their investment losses. Iorio Altamirano LLP represents GWG L Bondholders throughout the country in FINRA arbitration claims against the brokerage firms and financial advisors that recommended and sold the L Bonds to retail investors.

**Update – March 30, 2023:** On March 28, 2023, United States Bankruptcy Judge Marvin Isgur told GWG Holdings, Inc. that it needs to provide bondholders more information about potential recoveries before he approves sending a Disclosure Statement to creditors, which needs to occur before creditors vote to accept or reject the Second Amended Reorganization Plan. However, the judge also cautioned L Bondholders that even with the additional information, the amount that L bondholders are going to recover would likely remain uncertain. The uncertainty on the amount of money that will be available to distribute to L bondholders results from the nature of the remaining assets that GWG has. Outside of the portfolio of life insurance policies that GWG owns, the company does not have liquid tangible assets to sell to raise cash. Instead, its primary assets are its equity interest in Beneficent and its litigation assets, which are legal causes of action against non-parties, including Beneficent. Numerous factors impact how, when, and if GWG can monetize those assets. Additionally, based on information filed through the bankruptcy proceeding, the sale of the portfolio of life insurance policies will not likely result in a significant recovery to L bondholders.

Original Post:

GWG Bankruptcy Update (March 14, 2023): GWG Appears to be Headed Toward Liquidation

In court filings on March 11, 2023, GWG notified the Bankruptcy Court that it would submit a Second Amended Reorganization Plan after concluding a mediation with creditors and other stakeholders, including the Official Committee of Bondholders of GWG Holdings Inc. (“Bondholder Committee”). The latest plan, expected to be filed on or about March 14, 2023, proposes liquidation for GWG through the establishment of two liquidation trusts. The plan will likely be put up for a vote by creditors in the coming months.

Below is a high-level summary of GWG’s Second Amended Reorganization Plan based on recent court filings:

• Under the Second Amended Reorganization Plan, GWG will no longer continue as a going concern.
• Instead, GWG will cease all new business operations.
• A Wind-Down Trust will be established to take all necessary steps to wind down GWG’s business affairs and monetize GWG’s non-litigation assets.
• GWG’s two primary non-litigation assets are its (i) portfolio of life insurance policies; and (ii) passive non-controlling equity interest in The Beneficient Company Group, L.P. (“Ben LP” and, together with its subsidiaries, “Beneficient”) and FOXO Technologies, Inc. (“FOXO”).
• GWG’s Chief Executive Officer and Chief Restricting Officer, Jeffrey S. Stein, or an affiliate of Mr. Stein, will be appointed as the Wind-Down Trustee.
• The Wind-Down Trust will issue trust interests (Series A1, A2, B, C. D, and E) to all holders of claims and equity interests in GWG, including GWG L Bondholders. That is, Bondholders will exchange their current L Bonds for New Series A1Trust interests.
• The term of the Wind-Down Trust will be three (3) years. The term may be extended by court approval for up to two( (2) additional years.
• The second trust, the Litigation Trust, will hold all non-released litigation assets, as well as GG’s interest in any insurance policies covering directors and officers of GWG. The trustee of the Litigation Trust, which the Bondholder Committee will appoint, will have the discretion to prosecute or settle all such claims, with approval by the bankruptcy court in some circumstances. Any proceeds from the Litigation Trust will be distributed to the Wind Down Trust for further distribution to holders of the trust interests.
• Beneficient, its current and former directors and officers (including, without limitation, Bradley K. Heppner, Thomas O. Hicks, Bruce W. Schnitzer, Dennis P. Lockhart, and Peter T. Cangany) do not get released. However, GWG and creditors can still negotiate with Beneficient to reach a settlement. If a settlement is reached prior to the confirmation hearing, the bankruptcy court must approve the settlement.
• GWG will not consent to the Beneficient SPAC transaction without court approval.
• Broker-dealers and investment advisors who sold GWG L Bonds to retail investors may elect to receive a release from the debtors of any causes of action by the estate in exchange for paying the debtors cash in the amount equal to 30% of all value received by such electing broker-dealers from GWG for the sale of GWG L Bonds. Any broker-dealer may opt-in to the broker-dealer settlement by submitting an election notice and making the requisite payment within 90 days following the Second Amended Plan’s effective date.

As GWG Holdings, Inc. continues to navigate the bankruptcy process, with many questions remaining for L bondholders, our law firm remains ready to help GWG L bond investors file meritorious arbitration claims to recover their losses against broker-dealers. We continue to help GWG L Bond investors recover their losses.

To read more about the alleged misconduct, please visit our other blog posts:

Broker-Dealers Sold GWG L Bonds Using Aggressive and Misleading Marketing

“GWG Was a Classic Ponzi Scheme” – Official Committee of Bondholders of GWG Holdings, Inc.

Iorio Altamirano LLP (gwglawyer.com), a law firm that represents retail investors, is representing many GWG L Bond investors against brokerage firms across the country to recover investment losses and damages sustained by those firms’ recommendations to invest in GWG L Bonds. Based on the law firm’s investigation, there appears to have been widespread negligence and misconduct by many brokers and broker-dealers across the country.

For the latest on Iorio Altamirano LLP’s investigation of GWG L Bonds, including a key event timeline, visit our firm’s investigation page: Iorio Altamirano LLP’s Investigation of GWG L Bonds.

About Iorio Altamirano LLP

Iorio Altamirano LLP is a securities arbitration law firm located in New York, NY. We represent investors nationwide and vigorously pursue FINRA arbitration claims on behalf of investors to recover investment losses.

We have over 20 years of combined experience as securities arbitration lawyers and have helped investors recover investment losses in over 1,000 cases. Our firm will file a FINRA securities arbitration claim on your behalf on a contingency fee basis to try to recover your losses. If we do not obtain a recovery, you do not owe us a legal fee.

If you have invested in L Bonds offered by GWG Holdings, contact securities arbitration lawyers August Iorio at august@ia-law.com or Jorge Altamirano at jorge@ia-law.com. Alternatively, call the firm toll-free at (646) 330-4624.

Original Post:

GWG Bankruptcy Update (February 11, 2023): GWG Proposes Liquidation in its Amended Reorganization Plan

On February 10, 2023, GWG submitted an Amended Reorganization Plan to the bankruptcy court that would lead GWG to cease all new business operations and establish a Wind Down Trust to liquidate its assets.

The Amended Reorganization Plan was filed as GWG, and other stakeholders are still engaged in a mediation with the Honorable David R. Jones, United States Bankruptcy Judge for the Southern District of Texas. An in-person mediation was held in New York City on January 30, 2023, and January 31, 2023, but it remains ongoing. GWG’s Amended Reorganization Plan may be subsequently amended to reflect any results of the mediation, however below is a high-level summary of the amended plan:

• Under the Amended Reorganization Plan, GWG will no longer continue as a going concern.
• Instead, GWG will cease all new business operations.
• A Wind Down Trust will be established to monetize GWG’s assets.
• GWG has two types of assets (i) portfolio of life insurance policies; (ii) passive non-controlling equity interest in The Beneficient Company Group, L.P. (“Ben LP” and, together with its subsidiaries, “Beneficient”) and FOXO Technologies, Inc. (“FOXO”).
• A Wind Down Trustee will be appointed with the sole authority to make decisions and take action with respect to the Wind Down Trust, including how and when to monetize the equity interests in Beneficient and FOXO.
• Bondholders will exchange their current L Bonds for New Series A Preferred Stock into the restructured GWG. The preferred stock should be freely transferable. The New Series A Preferred Stock shall be entitled to cumulative dividends from April 20, 2022, at the rate of 9% per annum. Pending Cash distributions, such dividends shall be payable in kind. The New Series A Preferred Stock shall be subject to mandatory redemption in five years and may be redeemed at any time without penalty at stated value, plus accrued dividends.
• If the Amended Plan is not confirmed, GWG will likely enter Chapter 7 bankruptcy liquidation.
• Beneficient, its current and former directors and officers (including, without limitation, Bradley K. Heppner, Thomas O. Hicks, Bruce W. Schnitzer, Dennis P. Lockhart, and Peter T. Cangany) do not get released.
• The proposed voting deadline is April 14, 2023, at 4 p.m. CT.

One of the key remaining sticking points among the stakeholders appears to be a standing motion filed by the Official Committee of Bondholders of GWG Holdings Inc. (“Bondholder Committee”) seeking court approval to prosecute causes of action against certain current and/or former directors and officers of GWG Holdings, Inc., individuals, and corporate entities affiliated with or controlled by Brad Heppner, transferees of certain fraudulent transfers, and key broker-dealers who marketed and sold L Bonds.

To read more about the alleged misconduct, please visit our other blog posts:

Broker-Dealers Sold GWG L Bonds Using Aggressive and Misleading Marketing

“GWG Was a Classic Ponzi Scheme” – Official Committee of Bondholders of GWG Holdings, Inc.

As GWG Holdings, Inc. continues to navigate the bankruptcy process, with many questions remaining for L bondholders, our law firm remains ready to help GWG L bond investors file meritorious arbitration claims to recover their losses against broker-dealers. We continue to help GWG L Bond investors recover their losses.

Iorio Altamirano LLP (gwglawyer.com), a law firm that represents retail investors, is representing many GWG L Bond investors against brokerage firms across the country to recover investment losses and damages sustained by those firms’ recommendations to invest in GWG L Bonds. Based on the law firm’s investigation, there appears to have been widespread negligence and misconduct by many brokers and broker-dealers across the country.

For the latest on Iorio Altamirano LLP’s investigation of GWG L Bonds, including a key event timeline, visit our firm’s investigation page: Iorio Altamirano LLP’s Investigation of GWG L Bonds.

About Iorio Altamirano LLP

Iorio Altamirano LLP is a securities arbitration law firm located in New York, NY. We represent investors nationwide and vigorously pursue FINRA arbitration claims on behalf of investors to recover investment losses.

We have over 20 years of combined experience as securities arbitration lawyers and have helped investors recover investment losses in over 1,000 cases. Our firm will file a FINRA securities arbitration claim on your behalf on a contingency fee basis to try to recover your losses. If we do not obtain a recovery, you do not owe us a legal fee.

If you have invested in L Bonds offered by GWG Holdings, contact securities arbitration lawyers August Iorio at august@ia-law.com or Jorge Altamirano at jorge@ia-law.com. Alternatively, call the firm toll-free at (646) 330-4624.

However, much of the court filing, including specific allegations of wrongdoing, was filed under seal.

On February 1, 2023, the United States Bankruptcy Court for the Southern District of Texas unsealed several significant court filings, including a draft adversary legal complaint against certain current and/or former directors and officers of GWG Holdings, Inc., individuals, and corporate entities affiliated with or controlled by Brad Heppner, transferees of certain fraudulent transfers, and key broker-dealers who marketed and sold L Bonds.

The unsealed complaint includes claims against the following broker-dealers: Emerson Equity, LLC, Centaurus Financial, Inc, Center Street Securities, Inc., Western International Securities, Inc., NI Advisors, Inc., Moloney Securities Co., Inc., Interest International Equities Corporation, Arete Wealth Management, LLC, Westpark Capital, Inc. Ausdal Financial Partners, Cabot Lodge Securities, LLC, and Portsmouth Financial Services.

The unsealed complaint has revealed the following allegations, which were made after the bondholder committees’ investigation, which included access to information that is not in the public domain:

• Together with other insiders, Brad Heppner was the mastermind behind a Ponzi scheme whereby GWG, in conjunction with its broker-dealer network, sold hundreds of millions worth of L Bonds to retail investors even when it became clear that the only way to repay those investors was to sell yet more L Bonds to more retail investors.
• The engine for this massive Ponzi scheme was not only the large sales force employed by GWG but also a nationwide group of broker-dealers that marketed and sold L Bonds to unsuspecting investors.
• These broker-dealers worked closely with GWG, which paid the broker-dealers hefty commissions to ensure a constant flow of new L Bondholders investing cash into GWG despite GWG’s effective inability to repay them in full.
• Many L Bond holders automatically “renewed” their investment in L Bonds, in which case GWG did not repay the principal to the investor, although it did routinely pay additional commissions to broker-dealers on these renewals. Broker-dealers were incentivized to ensure that no investors ever actually “cashed out” of L Bonds, which allowed them to continue selling new L Bonds and keep new cash coming into GWG, thus perpetuating the Company’s Ponzi scheme.
• In the four years leading up to the Petition Date, the 12 largest broker-dealer recipients of commission payments received at least $42 million from GWG, all while GWG was sliding deeper into insolvency, becoming more reliant on sales of new L Bonds to stay afloat and satisfy maturity and interest payments to existing L Bondholders, and transferring hundreds of millions of dollars in cash to Ben and Ben’s affiliates in exchange for speculative equity interests in these entities.
• The following chart shows the commission received by the 12 largest recipients of commissions from GWG Holdings for brokerage services in the four years leading up to the bankruptcy filing.

• All of the Broker-Dealer Commissions were paid from proceeds of L Bond sales.
• Brad Heppner needed to recruit a steady stream of new investors in order to service GWG’s increasingly large debt obligations. GWG was resigned to paying its debts through additional debt in the form of L Bonds. Unlike a loan, GWG did not need to prove its ability to pay back the L Bonds—it just needed a sales pitch. GWG provided such a pitch to investors and broker-dealers by highlighting GWG’s perfect record of never missing a principal or interest payment on L Bonds. Unbeknownst to investors, however, GWG could only achieve this “perfect” record by aggressively recruiting new investors to pay off the old. GWG had no positive cash flow with which to sustain the Life Portfolio—much less to pay the interest, commissions, and other operational expenses required to sell L Bonds.
• The result was a business model with all the hallmarks of a classic Ponzi scheme. L Bonds purchased by later investors generated artificially high returns for older L Bondholders, whose return on investment was then marketed to encourage more L Bond purchases. The Company continuously sold new L Bonds to repay existing L Bondholders—knowing full well that it would have to sell yet more new L Bonds to repay its increasing debt, and without any reason to expect a turnaround in the Life Portfolio or the value of its investment in Ben to materialize.
• GWG’s relationship with the Broker-Dealers worked as follows. GWG entered into a Dealer Management Agreement with the registered broker-dealer Emerson Equity. As GWG’s “dealer manager,” Emerson Equity agreed to offer and sell L Bonds on a “best-efforts” basis and entered into Soliciting Dealer Agreements with certain other Broker-Dealers that were members of FINRA (the “Selling Group Members”). The Selling Group Members were authorized to sell L Bonds pursuant to their agreements with Emerson Equity. Each Broker-Dealer Defendant was a Seller Group Member.
• GWG Holdings paid the Broker-Dealer Defendants a selling commission ranging from 0.75% to 6% of the principal amount of L Bonds they sold (the exact commission depended on the L Bonds’ maturity date, which ranged from six months to seven years). Each Broker-Dealer Defendant received commission payments directly from GWG Holdings. The Seller Group Members were also entitled to “additional compensation” (also paid by GWG Holdings) of up to 3% of gross offering proceeds as reimbursement for accountable out-of-pocket expenses incurred in offering and selling L Bonds. Given these financial incentives, the Broker-Dealer Defendants were strongly encouraged to maximize L Bond sales and ensure that customers reinvested any proceeds from L Bond maturities into new L Bonds—a key requirement in order to keep the Ponzi scheme going.
• After entering into their respective Soliciting Dealer Agreements with Emerson, Seller Group Members (including the Broker-Dealer Defendants) required regular communications and updates from GWG to stay apprised (and keep their customers, retail investors in L Bonds, apprised) of the Company’s business and its attendant impact on the prospects of L Bonds. This was the responsibility of GWG’s national product sales team (the “GWG Sales Team”), which provided marketing materials and other relevant information about L Bonds (which were prepared and reviewed by GWG) to Seller Group Members.
• The GWG Sales Team comprised “internal wholesalers” and “external wholesalers.” The wholesalers were employees of Ben who assisted GWG and Emerson with the marketing and sale of L Bonds. The wholesalers provided services to GWG and received a base salary from Ben pursuant to the Shared Services Agreement between GWG and Ben. Although they were employees of Ben, the wholesalers registered their FINRA licenses with Emerson, and Emerson held the licenses for and oversaw the national selling activities of the GWG Sales Team. Emerson paid the GWG Sales Team commissions based on the Seller Group Members’ L Bond sales.
• GWG used “internal” and “external” wholesalers for marketing L Bonds to the Seller Group Members. “Internal” wholesalers communicated with registered representatives of the Seller Group Members and booked appointments for “external” wholesalers to meet with these representatives. The external wholesalers then provided these representatives with information regarding L Bonds and established themselves as the representatives’ point of contact within GWG. The registered representatives then placed orders for L Bonds on behalf of their retail investor clients.
• In marketing L Bonds, GWG’s external wholesalers provided marketing materials and made presentations to Seller Group Members and their registered representatives. Wholesalers also spent GWG’s funds entertaining registered representatives with conferences, dinners, and the like.
• Merriah Harkins (“Harkins”), GWG’s Executive Vice President of Retail Capital Markets, oversaw these marketing efforts. Harkins is also a registered representative of Emerson Equity. Harkins and the GWG Sales Team held weekly meetings to discuss L Bond marketing and sales. These weekly meetings were usually attended by internal and external wholesalers, representatives of Emerson, and, on numerous occasions, Evans and Holland. Holland routinely reviewed marketing materials prepared for the Seller Group Members and their registered representatives to verify the propriety of any material disclosures.
• The GWG Board kept close tabs on L Bond sales, including the activity of Broker-Dealers. In addition to overseeing the marketing of L Bonds to Seller Group Members, Harkins, and the GWG Sales Team prepared detailed internal reports regarding L Bond sales and the activity of Broker-Dealers (including but not limited to Seller Group Members). Among other things, these reports showed L Bond sales projections by month, actual sales performance, the number of L Bonds sold by specific Seller Group Members, and the number of L Bonds sold in specific geographic regions, among other things. The GWG Sales Team regularly provided such reports directly to the GWG Board. Harkins and other members of the GWG Sales Team personally appeared at numerous GWG Board meetings to present their reports.
• At the October 29, 2020 meeting of the GWG Board, a “Sales & National Accounts Results” presentation reported 14% growth in L Bond sales year over year, including $42.9 million in sales in September 2020. The presentation also described GWG’s “plan to achieve 2020/2021 goals,” which included a “methodical, numbers-driven expansion plan” to reach a 12-month goal of $750 million in L Bond sales. This plan would involve “measur[ing] activity and sales performance against goals to promote a high level of compliant activity.” The plan also envisioned doubling the number of Broker-Dealer representatives and RIAs to 10,000 by June 30, 2021, and again to 20,000 by September 30, 2021. There is no indication that the GWG Board ever considered hitting the brakes on L Bond sales and Broker-Dealer/RIA activity, given GWG’s obvious insolvency.
• There was significant interest by the GWG Board surrounding the sale of L Bonds. For example, on at least one occasion, in August 2019, the Second Special Committee of the GWG Board asked Harkins what impact the Company’s use of L Bond proceeds to fund transactions with Ben would have on demand for L Bonds.
• In addition to receiving reports from the GWG Sales Team, the GWG Board received direct communications from Emerson Equity on at least one occasion, in February 2021, when Emerson Equity sent a memo regarding its “Analysis of Investors Purchasing GWG L Bonds.” The memo purported “to determine the financial profile of the L Bond investors” and highlighted that the “average investment size in our current series of the L Bond (Series 3) is $46,895.” The memo proceeded to discuss the general marketing and sales practices of Seller Group Members.
• The victims of this scheme (unlike Heppner, who is a reported billionaire) are the approximately 27,000 L Bondholders. These Bondholders are mainly small retail investors, including retired and elderly individuals, with the average individual L Bondholder owning just $45,000 worth of L Bonds. These stakeholders invested their savings with the expectation that the Debtors’ L Bonds were safe investments that would provide periodic interest payments and satisfaction of their principal at maturity—an expectation that was thwarted by Heppner’s scheme and the Defendants’ misconduct. Instead of providing a comfortable income stream for their retirement, the L Bondholders’ investments in GWG became the piggybank for Ben’s speculative business plans and the massive array of trusts and entities under Heppner’s control.
• The financial burden caused by the scheme has fallen solely on the shoulders of the L Bondholders, who find themselves in financial ruin through no fault of their own.

As GWG Holdings, Inc. continues to navigate the bankruptcy process, with many questions remaining for L bondholders, our law firm remains ready to help GWG L bond investors file meritorious arbitration claims to recover their losses against broker-dealers. We continue to help GWG L Bond investors recover their losses.

Iorio Altamirano LLP (gwglawyer.com), a law firm that represents retail investors, is representing many GWG L Bond investors against brokerage firms across the country to recover investment losses and damages sustained by those firms’ recommendations to invest in GWG L Bonds. Based on the law firm’s investigation, there appears to have been widespread negligence and misconduct by many brokers and broker-dealers across the country.

For the latest on Iorio Altamirano LLP’s investigation of GWG L Bonds, including a key event timeline, visit our firm’s investigation page: Iorio Altamirano LLP’s Investigation of GWG L Bonds.

See Also:

“GWG Was a Classic Ponzi Scheme” – Official Committee of Bondholders of GWG Holdings, Inc.

GWG Bankruptcy Update: Questions Remain as to When, or If, GWG L Bond Investors Will Receive Future Distributions

GWG L Bond Investor Recovers Losses After Filing a FINRA Arbitration Claim

SEC Finds That Some Broker-Dealers Are Using Outdated, Incomplete, and Inaccurate Risk Disclosures

Brokerage Firm Liability

An L bond is a financial product created by GWG Holdings, Inc. (GWGH). The L Bonds are speculative, high-risk, illiquid, and unrated alternative investment offerings.

Initially, GWG Holdings pooled money from bond investors to purchase life insurance policies on the secondary market, paid the policy premiums, and then collected the death benefit when the insured individual passed away. However, beginning in 2018, GWG Holdings used the investor capital to invest in a new business model, exposing the company to riskier alternative assets. Many GWG L Bond investors were utterly unaware that GWG materially reoriented its business model, which, in our view, made it a much bigger credit risk. Additionally, many GWG L bond investors were not told by their financial advisors that GWG used investor capital to pay out the high distributions owed to other GWG L Bond investors in a Ponzi-like scheme.

GWG sold the L bonds through Emerson Equity LLC and a network of regional broker-dealers, who pitched the products to individual retail investors. The network of regional broker-dealers who sold L Bonds and shared in the selling commissions included the following firms, as well as other broker-dealers:

• Centaurus Financial, Inc.
• Great Point Capital LLC.
• National Securities Corporation.
• Western International Securities, Inc.
• Aegis Capital, LLC.
• Newbridge Securities Corporation.
• Dempsey Lord Smith, LLC.
• Coastal Equities, Inc.
• International Assets Advisory, LLC.
• Arete Wealth Management, LLC.
• Capital Investment Group, Inc.
• Lifemark Securities, Corp.
• Westpark Capital, Inc.
• Ausdal Financial Partners, Inc.
• American Trust Investment Services, Inc.
• Moloney Securities.
• IFP Securities, LLC.
• Center Street Securities.
• Cabot Lodge Securities LLC.
• Kingswood Capital Partners, LLC.
• American Trust Investment Services, Inc.
• SW Financial.
• Paulson Investment Company LLC.
• Ages Financial Services, LTD.
• Independence Capital Co., Inc.
• Landolt Securities, Inc.
• Intervest International Equities Corporation.
• Titan Securities.
• NI Advisors.
• JRL Capital Corporation.
• The FIG Group, LLC.
• M Stevens Securities, LLC.
• TFS Securities, Inc.
• Integrity Brokerage, LLC.
• American Equity Investment Corporation.
• Portsmouth Financial Services.

Brokerage firms are required to make investment recommendations that are suitable and in the best interest of their customers. Brokerage firms and financial advisors must also disclose all material facts and risks of a security when making a recommendation. When a firm or advisor fails to meet these standards of conduct, they can be held liable for damages.

Firms and brokers must also conduct reasonable due diligence on products they offer before recommending them to any clients. There are serious concerns that some broker-dealers recommended GWG’s L Bonds to customers without first conducting sufficient due diligence on the GWG L bonds or GWGH.

Investors who purchased GWG L Bonds through a financial advisor are encouraged to contact Iorio Altamirano LLP (gwglawyer.com) for a free and confidential consultation and to review their legal rights. We can review and analyze potential claims and advise individuals of their legal rights without obligation or cost.

About Iorio Altamirano LLP

Iorio Altamirano LLP is a securities arbitration law firm located in New York, NY. We represent investors nationwide and vigorously pursue FINRA arbitration claims on behalf of investors to recover investment losses.

We have over 20 years of combined experience as securities arbitration lawyers and have helped investors recover investment losses in over 1,000 cases. Our firm will file a FINRA securities arbitration claim on your behalf on a contingency fee basis to try to recover your losses. If we do not obtain a recovery, you do not owe us a legal fee.

If you have invested in L Bonds offered by GWG Holdings, contact securities arbitration lawyers August Iorio at august@ia-law.com or Jorge Altamirano at jorge@ia-law.com. Alternatively, call the firm toll-free at (646) 330-4624.