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Originally Posted by SallyB
Just read that GWG stopped buying life insurance policy in 2019 which made the L Bond have no market value.
Again, we have to ask why Michael didn't know this or did he and just kept selling them anyways.
Why didn't Michael let his clients know the second he knew the company missed their filing deadline with the SEC and give the people the option to stay in or sell. Would he have lost commissions?
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The reason he continued to ignore his responsibility to be a fiduciary is MONEY. As a business grows and is successful the management gets used to the lifestyle that comes with that success. It is very hard to admit to friends and family that you need to adjust your lifestyle so you find alternative ways to keep the income flowing. In the case of GWG, high commissions meant the income could continue and the lifestyle did not have to change, at least not right then. We have focused on GWG but buying and selling clients' stocks, putting them in risky investments that were not appropriate for their age and portfolio, and other income-producers were also used by Michael L Whitaker and Associates.