[SallyB]

July 2023 Update: Looks like if my parents get anything back it will take serval years because GWG and BENE which is their largest asset is in downward financial spin. What I have found out you have 6 years to make a FINRA arbitration against your Broker.
Please read.
GWG Bankruptcy Update (July 14, 2023): The Residual Value of the GWG L Bonds Remain Suspect as Beneficient Receives a Wells Notice from the SEC — Securities Arbitration Lawyer Blog — July 14, 2023



UPDATE: Here is what is happening in the courts

GWG Bankruptcy Update (April 17, 2023): Liquidation Options Become Clearer as Recovery for Bondholders Remain Uncertain — Securities Arbitration Lawyer Blog — April 17, 2023

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.

[Babubhat]

Oral representations have little to no value in court. Call a few securities attorneys for a free case evaluation. I suspect the numbers may not be enough to interest them

[kkingston57]

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.

Can't help you but thanks for the information.

[retiredguy123]

I'm sorry that it happened. GWG L bonds is a private investment in purchasing life insurance policies at a discount with the hope of making money when the person who sold the policy dies. Basically, this investment is classified as a "junk" bond. According to the GWG prospectus for the L bonds:

"An investment in our securities involves a high degree of risk."

To prevail in a lawsuit, I think your parents would need to prove that the broker was acting as a "fiduciary" and provided advice that was not consistent with their overall financial situation. But, my guess is that the broker was not a fiduciary, which means that he didn't need to provide appropriate advice. Also, they were most likely provided a copy of the prospectus which clearly defines the investment as high risk, not a safe investment. Personally, I don't think a lawyer will do them much good.

[gobuck827]

A Google search using "gwg l bonds class action lawsuit" returned over 50 links to various law firms engaged in class action lawsuits.

[retiredguy123]

Originally Posted by gobuck827

A Google search using "gwg l bonds class action lawsuit" returned over 50 links to various law firms engaged in class action lawsuits.

Good luck with that. If they win, the lawyers will make a bundle, and the investors may get a coupon for a hamburger and fries.

[Bilyclub]

We almost signed up with them, but got bad vibes when they started to push us into creating all sorts of accounts without any specific things to invest in.

[ton80]

Originally Posted by retiredguy123

I'm sorry that it happened. GWG L bonds is a private investment in purchasing life insurance policies at a discount with the hope of making money when the person who sold the policy dies. Basically, this investment is classified as a "junk" bond. According to the GWG prospectus for the L bonds:

"An investment in our securities involves a high degree of risk."

To prevail in a lawsuit, I think your parents would need to prove that the broker was acting as a "fiduciary" and provided advice that was not consistent with their overall financial situation. But, my guess is that the broker was not a fiduciary, which means that he didn't need to provide appropriate advice. Also, they were most likely provided a copy of the prospectus which clearly defines the investment as high risk, not a safe investment. Personally, I don't think a lawyer will do them much good.

If you go FINRA Broker Check you will find that Michael Whitaker has 3 disclosures against him. Two are unresolved "Breach of Fiduciary Duty" for 100,000 and 232,000 $. This suggests that he is supposed to act as a Fiduciary but the resolution is taking a very long time. There are no other details shown. Good Luck!!

[phylt]

Whitaker conducts some of those free lunches with a ‘seminar’ in TV sometimes. Thanks for the heads up. Wonder if he has suits outstanding here.

[retiredguy123]

Originally Posted by phylt

Whitaker conducts some of those free lunches with a ‘seminar’ in TV sometimes. Thanks for the heads up. Wonder if he has suits outstanding here.

I think the lawsuits are against GWG. Whitaker is just the broker who is selling financial products.

[ton80]

Originally Posted by retiredguy123

I think the lawsuits are against GWG. Whitaker is just the broker who is selling financial products.

See post # 8. There are suits against Whitaker personally for not fulfilling his fiduciary duty. Go to FINRA Broker Check.

[Keefelane66]

I found this law firm enclosed in suit.
Michael Whitaker is Facing Investor Allegations of Negligence
Sorry for your parents being naive always get documentation in writing not hearsay

[SallyB]

Thank you for the information

[SallyB]

Originally Posted by ton80

If you go FINRA Broker Check you will find that Michael Whitaker has 3 disclosures against him. Two are unresolved "Breach of Fiduciary Duty" for 100,000 and 232,000 $. This suggests that he is supposed to act as a Fiduciary but the resolution is taking a very long time. There are no other details shown. Good Luck!!

Thank you for the information will be showing my parents. I wonder just how many Villagers were taken by him and GWG.

[SallyB]

Originally Posted by phylt

Whitaker conducts some of those free lunches with a ‘seminar’ in TV sometimes. Thanks for the heads up. Wonder if he has suits outstanding here.

So, you can be involved in a Ponzi scheme and still offer people free lunch seminars. I am taken back, that he can still operate. I feel bad for the seniors that he has hurt.