[MDFlyer]

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.

[SallyB]

Originally Posted by LuvtheVillages

From the on-line publication Investment News:

"In its bankruptcy filings, GWG Holdings reported $3.5 billion of total assets and almost $2.1 billion in total debt. While its assets reportedly outweigh its debt, GWG Holdings’ big hurdle is that many of those assets are illiquid, hard-to-value pools of life settlements, or unwanted insurance policies that consumers sell to investors like GWG Holdings, which can come with risks.

Leading up to the start of this year, GWG Holdings, a publicly traded company with the ticker GWGH, had struggled to file its audited quarterly and annual financial statements on time."


So it looks like there won't be much cash available until the people who sold their life insurance policies die.

From the same source:
"... the company’s collapse, including GWG’s defaulting on $13.6 million in payments in January to bondholders."

So they can't even make their interest payments!

Do your own research. Don't rely on what Whitaker sends you.

Thank you

[SallyB]

Originally Posted by MDFlyer

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.

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

[MDFlyer]

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?

[MDFlyer]

Originally Posted by SallyB

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

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

[Pairadocs]

Originally Posted by SallyB

Last week while visiting my parents they informed us they lost close to $100,000 with their broker Michael Whitaker. They invested in a very high-risk company GWG which has filed for bankruptcy about a year ago. My parents were told this was not high-risk by Michael Whitaker and GWG at the lunch where they first meet them. Michael has sent numerous emails to my parents over the last year telling to hang in there. They purchased a product call L Bonds which had a hold time for 7 years at that time Michael told them he had close to $10 million of his clients' money in GWG so they thought it must be safe.

I decided to look into GWG and Michael and the information I have found is not promising.

The information I have found says that this "GWG Was a Classic Ponzi Scheme"-Official Committee of Bondholders of GWG Holdings, Inc. The CEO transfer from the bondholders $258 million into his new company Beneficent. It stated that GWG used new bondholder funds to pay their monthly pay outs 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.

I want my parents to call a lawyer, they are hesitant since they have been with Michael for quite some time.

So, my question is for anyone who still works Michael have to file a lawsuit or are you going too. If you did file a lawsuit, what lawyer did you use and were you happy with the results.

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.

[Pairadocs]

Originally Posted by SallyB

Thank you for responding. I don't it is fair to blame a person who seeks help from a broker/financial advisor not everyone understands the market and need help from someone who is supposed to be trusted. By what you are saying we should not ever look for help in matters we don't understand. Don't we all seek help from a professional on matters we don't understand plumbers, electricians, lawyer and so on.
This is not 100% on my parent's fault, yes they should have not been so trusting.

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.

[VICAR OF DIBLEY]

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

[MDFlyer]

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.

[Plinker]

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.

[SallyB]

Originally Posted by danglanzsr

I am an investor with Whitaker. GWG is in Chapter 11 reorganization (Southern District of Texas, cases 22-90032 and 22-90033) The L bonds have priority in the bankruptcy case and there is a high likelihood that the bonds will be paid since QWG has over a billion dollars in assets according to filings in the bankruptcy court. It is premature to claim that L bond investors have lost all their money. Therefore any law suit based on loss from the sale of the bonds would be premature. I am only addressing the GWG claims, not any other grievance others may have against Whitaker

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.

[MDFlyer]

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.

[retiredguy123]

Originally Posted by MDFlyer

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.

[hrhphyllis]

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.

[DAVES]

Originally Posted by SallyB

Last week while visiting my parents they informed us they lost close to $100,000 with their broker Michael Whitaker. They invested in a very high-risk company GWG which has filed for bankruptcy about a year ago. My parents were told this was not high-risk by Michael Whitaker and GWG at the lunch where they first meet them. Michael has sent numerous emails to my parents over the last year telling to hang in there. They purchased a product call L Bonds which had a hold time for 7 years at that time Michael told them he had close to $10 million of his clients' money in GWG so they thought it must be safe.

I decided to look into GWG and Michael and the information I have found is not promising.

The information I have found says that this "GWG Was a Classic Ponzi Scheme"-Official Committee of Bondholders of GWG Holdings, Inc. The CEO transfer from the bondholders $258 million into his new company Beneficent. It stated that GWG used new bondholder funds to pay their monthly pay outs 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.

I want my parents to call a lawyer, they are hesitant since they have been with Michael for quite some time.

So, my question is for anyone who still works Michael have to file a lawsuit or are you going too. If you did file a lawsuit, what lawyer did you use and were you happy with the results.

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.