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Old 03-30-2023, 02:43 PM
ton80 ton80 is offline
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Quote:
Originally Posted by retiredguy123 View Post
I'm sorry that it happened. GWG L bonds is a private investment in purchasing life insurance policies at a discount with the hope of making money when the person who sold the policy dies. Basically, this investment is classified as a "junk" bond. According to the GWG prospectus for the L bonds:

"An investment in our securities involves a high degree of risk."

To prevail in a lawsuit, I think your parents would need to prove that the broker was acting as a "fiduciary" and provided advice that was not consistent with their overall financial situation. But, my guess is that the broker was not a fiduciary, which means that he didn't need to provide appropriate advice. Also, they were most likely provided a copy of the prospectus which clearly defines the investment as high risk, not a safe investment. Personally, I don't think a lawyer will do them much good.
If you go FINRA Broker Check you will find that Michael Whitaker has 3 disclosures against him. Two are unresolved "Breach of Fiduciary Duty" for 100,000 and 232,000 $. This suggests that he is supposed to act as a Fiduciary but the resolution is taking a very long time. There are no other details shown. Good Luck!!