Quote:
Originally Posted by Normal
I think the issue is that the implicated company (GWG) can go with reorganization under chapter 11. In fact it is almost certain. This means bond holders will lose about 35% of their principle. Whitaker was only a broker so he won’t be penalized; he only sold the bonds through established legal channels . Most of us lost some cash flow the last quarter and this first quarter, but apparently 30 or so bond holders will take a large hit. It’s a tough situation. Unfortunately, Flyer seems to be one of the few and uses the forum to attack his broker/scapegoat. Hopefully it works out a little better than expected?
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No, the issue is that Michael L Whitaker and Associates sold us into investments that were high risk in violation of his Fiduciary responsibility. When you, me, inform your trusted financial advisor that you only want to be in low-risk investments then that is what the advisor is supposed to present to you for your consideration. Michael violated this duty and presented clients with high-risk investments after being informed that this was not appropriate for clients that had specified low risk. Clients 80 years old, in bad health, or for some other reason should not have been exposed to high-risk investments. My question to you is how did you know it was only 30 or so bondholders that will take a big hit? Sounds like insider information.