SallyB, I am so sorry this is happening to your parents.

Even though there are some good advisors around, there are also sewer rats in the business of other people’s money. Their pitches are basically smoke and mirrors, designed to make those who are seeking advice think that they can never understand what to do with their own money, so they have to turn it over.

I have no advice for you, other than to comment on what someone else said in Post #40 — about getting the remainder of the money out if you can and getting it into Fidelity or Schwab……

If I were you, I would set up an appointment with one of those and find out what would be involved in moving the accounts to try to rescue what you can. (I would also talk to Vanguard. They do not have local offices like the other two, but I think they have people you can talk to by phone.)

I wish you good luck.

Boomer

I wonder if Seniors Against Crime would be helpful? They have an office in Brownwood and can be reached by phone during business hours. I absolutely hate that there are people in the world that try to separate folks from their money in such deceitful ways.

Way beyond their scope.

Yes we should see professional help, but we also should either have some knowledge about whatever we are using a professional for OR we need to accept that we are at their mercy and could be misguided without knowing it. When your plumber says "Repipe the entire house" or the electrician says you need a 'Power Conditioner' for $5,000 or the Lawyer tells you he will only represent your personal injury case if given a $10,000 retainer. All may have good intentions as well, but it still should be Your decision, not the professionals.

How to recoup
 

I got scammed out of a lot of money also. At least your parents can deduct the loss, as it’s a Ponzi scheme, from their taxes.

I got a reply from Whitaker. I immediately ordered the balance of my investments, however small they represent allot to me, liquidated. On top of the losses he is charging me to sell the bad investments he put me in.

Thank you

I am sorry you lost your money too. What reply did he give you on GWG?

Whitaker's favorite response is: Hold on to what you have because you haven't lost anything until you take it out. How long is too long when you are in your 70s and 80s to see if you can make a sow's ear into a silk scarf? Still giving bad advice Mike?

Do not believe what you are reading or what your bank account is telling you.

I'd follow the advice of the person who posted to google GWG lawsuits, apparently more than 50 going. As far a the person who sold the investment NOT being a fiduciary, attorney son tells me that might not be the deciding factor; said the laws concerning investments and "advice" is very "tricky" concerning elderly clients and (in his words) "what the law considers taking into consideration the age and financial situation of the "client", in other words, this person might have culpability even though he may only be a salesperson, not a fiduciary, depends on the circumstances. He also said a class action is probably your best bet, as it might not be large enough single case for a firm to take on. Do the research, you can find the information you need to join a class action.

It goes on everywhere, and the Villages is of course a prime target. You are quite right to point out how many intelligent, hard working people have NO idea how to manage their savings in retirement, though they have been very successful savers during their working years. I was not in a financial career, but had an early interest in how it all worked, investing, stocks, funds, active vrs. passive management, all of it, so I felt well prepared to manage in retirement. But you are correct, most people do not go into retirement with a great deal of knowledge of what they should do, and to make matters worse, the statistics show 65% of retirees do NOT stay in their area where they have life long trusted people around them, a "home town" banker who has always been there with sound advice. So they become easy targets for the nice "free" dinners at a desirable restaurant or country club... you'll see few of these "investment advice" dinners at the Waffle House.. not that I don't consider the Waffle House "desirable", I do, was just there THIS MORNING. But point being, I am surrounded by neighbors who admit they have no clue how to manage retirement nest eggs, yet were well educated professionals in their own field. So of course they TURN to a "professional" manager... and as Jimmy Buffet said, all the sharks in Florida are definitely NOT in the ocean ! No, your parents are far from the only seniors who have no idea of these shark infested waters. If you only knew the training some of these "advisors/sales persons" go through... many seniors don't have a chance, they are told exactly what they need to hear about "safety" of their money.

Hi, vheck out vicar of dibley. I posted on this site about Whitaker. I received so much valuable information. I hope this info can help you

VicarofDibey

I hope everyone continues to post in this thread. There is a lot we can learn and need to know about, not only this "advisor" but what the general trend may be and where and how to get help.

Few client actions are more disconcerting to an advisor than multiple SEC “disclosures”. Contacting a legal firm that is already in litigation with GWG and the L-bond debacle can result in a formal complaint of malfeasance to the SEC and will be listed on the advisor’s form ADV. This form is readily available and free on the FINRA website. Click on the “Brokercheck” tab, search by name or firm and click on “disclosures”. Unfortunately, I am concerned that many seniors are unaware of this website.
The FINRA website lists 4 disclosures in the last year for Mr. Whitaker, Sr. as well as disclosures for Mr. Whitaker, Jr. Breach of fiduciary duty as well as other accusations are listed on the FINRA website. Both individuals are at the same address in The Villages.
I have no doubt there are fiduciary advisors that truly put their clients’ interest first. Unfortunately, it appears many are far more interested in pushing high-commission products. Due diligence, a call to Vanguard and seeking legal recourse is my recommendation.

I was speaking to my parents today and they stated they received an email from Michael office from the company he works for New Bridge Securities for about 10 to 12 months ago. The email in short stated if a client sues Michael over GWG and wins that New Bridge and Michael can come back after the client if GWG finally settles in court.
Did you get the same letter. I am taken back yet again. It's not bad enough he put people in their 70's and 80's in a high-risk product telling them it was conservative but then threaten to come after them if they sue.

I am willing to take my chances on getting sued by Michael Whitaker if, and that is a big if, GWG ever settles. Number one there might be nothing to sue for since his advice has cost me most of my wealth. The first appearances before the judge did not go very far in building my confidence that GWG will ever return any of my money. It looks like suing Whitaker is the only way to get anything back and that is also slim.

I agree that suing Whitaker is probably your only hope. I don't understand why there are so many lawsuits against GWG when the company is bankrupt. You can't get blood from a turnip.

In addition, if the company is in bankruptcy you would get nothing anyway thru a lawsuit. I think pull everything from this brokerage immediately, this man took advantage of ur parents & probably pushed the bonds where he made the most commission.

I would contact the sheriff dept, crimes against seniors. I would contact New Bridge Securities. They are likely insured. Their business requires a license. If they loose that license they are out of business. I would also contact the securities and exchange commission. Ethics?

A lawyer? The mentioned Loss of 100,000. You will I expect discover it will cost, a guess,
20,000 for a chance to recover the 100,000 and there is no guarantee.

Those lunches offered by investment firms. We went to ONE. They give you a form, what do you have, where is it. Date of birth, net worth, I think the even asked for your social security number. My form said NONE OF YOUR BUSINESS. When they went in for the close, they saw my form. The poor guy who tried to get info from me HAD A BAD DAY. Lunch was well OK.

My first name is DAVID. The bible story David vs Goliath, if true the real lesson according to me is that David refused to fight the battle Goliath expected. I would NOT fight in their arena. See my other posted suggestions.

His advice cost me most of my wealth? All need to realize investment sellers are SALESMEN not your friend. Never put most of your wealth into anything. Perhaps too late but hopefully herd by others.

If, I understand what is going on Michael is an employee of a brokerage. Even if he owns the brokerage the company is responsible for Michael's actions if they are unethical. Loss of the license will put the firm out of business.

"First appearance before a judge," Fair or whatever. Our legal system is sort of self perpetuating. Representing yourself to save the outrageous cost for an attorney, you are viewed not with respect but as a bother.

As far as settles, you can bet IF the company is bankrupt, the principals, and legal staff have taken anything of value. Even office furniture will be sold and pocketed.

Past experience re bonds. Bearer bonds have not been issued in years. They are book entry. You are forced to have a broker hold them. "Pull everything from this brokerage," as you need a broker to hold them it may be difficult. Years ago I held TAX FREE BONDS.
The brokerage started charging me fees to hold the bonds THEY SOLD ME. The rep who sold me the bonds left and unethically contacted me to transfer my account to the firm he was setting up. Unethical because clearly he took what are supposed to be secured records at the brokerage. I already had an account at Fidelity. They helped me to transfer the bonds to them at no charge to me.

How many years ago are u talking about? Years ago a broker didnt hold your bond or stock certicate, they were held by the Depository Trust Company. That ended years ago, u buy a bond or stock..its nothing more than an entry in yoir account.

Sorry for what the OPs mother is going thru but why are people, at this age, dealing with fly by night investment advisors. As some posters siggested..go to Fidelity, Shwab, Vanguard etc.

My guess..glib slaesman giving u a rubber chicken lunch and if its for free Villages will buy imto it

ACCORDING TO HIM, "Michael L. Whitaker & Associates" are not "fly by night investment advisors" Everywhere Whitaker advertises he touts 38 years in business. Another false statement was made to lure you to invest with his firm. This may be the best avenue to look into. He may have been doing some type of insurance sales, or something else in the financial field but having a company to give financial advice was not one of them. On the FINRA page, it says 19 years total in the field.

Have you read your agreement. You are likely subject to arbitration which is never good

Please keep this thread alive and well. We need input from the locals in the area that have bought GWG from Michael L. Whitaker and Associates, and other so-called financial advisors in the area. When, what, and how did you handle or are handling GWG and your advisor? If an advisor can use false information in company ads to lure in clients, is it fraud?

I think any suit against Michael L Witaker and Associates will be for lack of supervision, not acting as a fiduciary or some other personal lacking. Of course, there is also a possible criminal case for fraud.

Financial Fraud
 

. Contact johnlamolli@flofir.gov or possibly the Silver Law Firm. One is criminal and the other is civil. Also, the federal SEC - Annie Rigler-Berlin.

Thank you for your reply

I think you are right about being criminal and fraud. My parents are listed as conservative / moderate investors so, selling them a high risk alternative investment was not in their best interest.

Sometimes the decline of a company is very slow and may even not be noticeable. We were with Michael L Whitaker since about 2010 when his company just started, his company was very good then. We told him that after big losses in 2008, we did not want to be in ANY risky stock or positions. Over the years Whitaker slipped into higher and higher risks (they pay higher commissions) until we arrived here with losses well over $100,000 and growing. Some we cannot get out of because of restrictions. He is still saying we haven't lost any money until we take it out. At 79 what are our chances of the market coming back enough to put us in the green?

If true, that GWG is determined to be a Ponzi Scheme shouldn't the brokers, in my case Michael L Whitaker, be partly responsible to their clients? We did rely on these brokers/advisors to guide us but were left hanging when they knew, or should have known, GWG was in trouble.


(Cut and pasted from the original post) The information I have found says that this "GWG Was a Classic Ponzi Scheme"-Official Committee of Bondholders of GWG Holdings, Inc. The CEO transferred from the bondholders $258 million into his new company Beneficent. It stated that GWG used new bondholder funds to pay their monthly payouts to existing bondholders for years and they sold over $1 billion in L Bonds.

I also found that the company Michael works for New Bridge Securities is also under investigation over the GWG L Bonds.

Here are two more law firms specifically listing Mr. Whitaker as a
salesman of these Ponzi bonds. It’s hard to come to the conclusion that he was working in his clients’ best interest. Although unlikely, it would be just punishment if a court would order a clawback of all commissions paid and made available for restitution to injured parties. A quick check of his disclosure page on FINRA eliminates him as a trusted advisor. There may be many more disclosures on the horizon.

Were You the Victim of Newbridge Securities Corporation Broker Michael Whitaker? | Erez Law

Bonds Category Archives — Page 2 of 2 — Securities Arbitration Lawyers Blog Published by Securities Arbitration Lawyers — Silver Law Group

Yes, Michael L Whitaker pushed the sale of GWG as part of our portfolio with his company. He had many dinners and golf outings sponsored by GWG. If GWG were drugs I would call him a drug pusher. There were other events, that involved investments by my son, that did not look like he was acting as a fiduciary and only in it for the commissions. High risk = High Commissions, Often trades = More Commissions and as the wheel turns it goes faster and faster until it is out of control. The worst part and most telling, in my mind was he did not get us out when he knew they had missed mandatory reporting dates.

What I have read is that GWG started "Robbing Peter to Pay Paul" about 5 years before the SEC started to investigate them. Which is a classic Ponzi scheme. In fact, GWG blames the SEC for bringing them down because they started an investigation.

How for the 5 years before the bankruptcy did this go unnoticed by SEC, New Bridge and Michael, isn't that their job.
I guess their commission trumped people's best interests.

What I find unbelievable, is Michael wants my parents and all his other clients is to trust the company that he knows is run by crooks. He states the company that GWG is part owner will be part of will be GWG saving grace, but the new company is owned by the same crooks. How does that even make sense?

Life? Perhaps, older. My parents, both sides, have passed. Roles perhaps reverse. Why did you? How could you have? Why do I remember my mother asking me that?

CROOKS? My brother in law an accountant who was also selling investments, for me a conflict of interest, On her passing I found HE sold some TRASH to my them 86 year old mother, GUILTY? Am am guilty of stupidly trusting my sister and her crooked husband.

So many intelligent people are taken by scams. Unethical practices.

We are supposed to learn. I confess I too have been taken but fortunately for at most $100.

As a kid, I sent away for FREE POSTAGE STAMPS used to advertised on matchbook covers. My allowance was like a quarter a week. Hey, inflation. That would cover a slice of pizza and a small coke. I sent in a coupon from a bus for
FLORIDA LAND. Remember the under water Florida land sales?

Mom, long gone, told me never to sign anything without reading it. I get many strange reactions insisting on this. How many times are we presented with a blank keypad-sign here.

We should ALL insist on reading what you are signing. That form is to protect NOT YOU but the people telling YOU there is no reason to read it.

Yes, it seems the older we get the more people like Michael L Whitaker and Associates to see us as targets for them to take advantage of. I hope this thread has been some help in saving others thinking of dealing with Whitaker. Of course, he says he only gives advice but the client makes the final decision. True but isn't he being paid to guide his clients to make the correct decisions? While it will not help me recover any of my money I hope that Michael L Whtaker also has to pay the price for the selfish, self serving why he "guided the lambs to slaughter".

You bring up an interesting point. Mr. Whitaker made a hefty commission selling these inappropriate high-risk bonds to seniors. Did he also charge a AUM (assets under management) fee yearly to MANAGE these bonds? In other words, double dipping? For example, if he sold you $100,000 worth of L-bonds and charged you a typical 1% annual AUM fee, did he not garnish $1000 from your account annually? If yes, is he not potentially guilty of MISMANAGING this portion of your portfolio while he was aware of GWG troubles? After all, his financial gain extended beyond his commission and therefore, perhaps, his liability.

Whitaker is not alone, although he is one of the best-known in this area. In my opinion, he is the worst of the breed because he not only lured in new clients with the GWG-sponsored golf tournaments and dinners combined with the slogan about Michael L Whitaker being in business for 38 years, but he turned on clients that had been with him for many years and had grown to trust him and his firm.