Quote:
Originally Posted by retiredguy123
Is there any evidence that GWG did anything illegal? Losing investors' money in a high risk investment is not illegal. As long as they acted in accordance with the prospectus, there would be no recourse in a lawsuit.
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Yes, there is evidence that GWG did illegal transactions. The CEO transferred $258 million dollars illegally according to the SEC reports. The SEC has been investigating GWG for years. One thing they are investigating is the "Rob Peter to Pay Paul". GWG had $2 Billion in L Bonds and the death claims on the life policies they held did not cover their high interest returns monthly to bondholders. So, they raise the incentives to brokers to sell more so they could use the new money to pay their monthly obligations. What I read is GWG monthly obligations is somewhere around $48 million a month in interest to bond holders.
I also read part of Whitaker job was to do his due diligence into the companies he sells. How could this have been missed.