Need help for my parents they have GWG L Bonds with Michael Whitaker and Associates

Closed Thread
Thread Tools
  #226  
Old 05-27-2023, 01:46 PM
MDFlyer MDFlyer is offline
Senior Member
Join Date: Mar 2022
Posts: 122
Thanks: 18
Thanked 80 Times in 58 Posts
Default

Quote:
Originally Posted by mike1206? View Post
Hello all, this is Michael L. Whitaker. As many of you know me personally, you know that I have served this community faithfully for 38 years and have always sought to put my clients’ interests first. While the attacks against me published on this forum by Mr. Hadaway (MDFlyer) are completely unfounded, they are still personally and professionally disturbing. In order to my clear my name, I have retained the law firm of Kaufman Dolowich & Voluck (“KDV”) in Fort Lauderdale, Florida to assist me in defending Mr. Hadaway’s claims. Hopefully, the following information from my counsel will assist in correcting some of the misstatements made by Mr. Hadaway on this forum.



Gregg Breitbart, a senior partner with KDV and the chair of its Financial Services Practice Group stated:

“Mr. Whitaker vehemently denies these defamatory accusations being made against him by Mr. Hadaway. Unlike Mr. Hadaway, we don’t intend to litigate this matter through blog posts. However, we are confident that the evidence in this case will establish, without doubt, that the investments that Mr. Whitaker recommended to Mr. Hadaway were all suitable and appropriate based on the information known at the time, and that the material risks and features of those investments were fully disclosed to Mr. Hadaway, and acknowledged by him in writing. The law requires that a financial professional like Mr. Whitaker have a “reasonable basis” to believe that a particular investment is suitable for a particular client, and it will be clear that Mr. Whitaker met that obligation here. The duty that Mr. Hadaway seeks to impose on Mr. Whitaker -- to accurately predict or guarantee the future performance of investments – does not, and cannot, exist.”



Zachary Hayes-Macaluso, an associate in KDV’s Financial Services group further stated as follows: “The fact is that all investments carry some risk, and not every investment will be profitable. Indeed, while Mr. Hadaway complains about a single investment that did not perform as expected, he is noticeably silent about the numerous other investments that Mr. Whitaker recommended to him that have performed well and yielded him profits. As such, we think that Mr. Hadaway’s use of this blog in an effort to smear the professional reputation of Mr. Whitaker is misguided and unfair, and Mr. Whitaker reserves all rights in connection therewith.”



With respect to the information posted here regarding investments in GWG, GWG is currently in the midst of Chapter 11 bankruptcy proceedings which seek to maximize the value of that company’s assets for its creditors, including the holders of its L Bonds. In fact, creditors of GWG are currently voting on a Chapter 11 plan that, if approved, is likely to result in material distributions to bondholders. (A court hearing to determine if that plan will be approved is currently scheduled for June 15, 2023.) While it is unfortunate that some of my clients have been impacted by events effecting GWG, I have continued to communicate with those clients regarding the status of their investments and any additional information as it becomes available. If you are interested in accurate information regarding the bankruptcy proceedings of GWG, this is the website where all such information and updates are posted publicly: Home - GWG Holdings, Inc., et al..



I am eternally grateful for the trust and confidence my clients have placed with me, and I hope this additional information puts to rest some of the false claims that have been posted about me recently on this forum.

Sincerely,
Michael L. Whitaker
Questions for Michael L Whitaker. 1. Did you own stock (L Bonds) in GWG? 2. When did you and or your family sell the investments in GWG? 3. Did you know that GWG was in trouble when you told your clients not to sell their investments in GWG? I don't expect answers to these questions as Michael L Whitaker only posts when he thinks it is to his advantage or when he wants to OUT someone.
  #227  
Old 05-27-2023, 04:20 PM
Gpsma Gpsma is offline
Gold member
Join Date: Mar 2010
Posts: 1,068
Thanks: 2
Thanked 1,311 Times in 381 Posts
Default

Mr Hadaway…did you look at what Mr Whitaker invested you in? Or did you give him all your money and let him do what he wanted?

As many people have said…go with the big guys, fidelity, shwab, vanguard…tell them your risk tolerance and they will kerp your investments in that lane.

Sorry you lost you money…but why go to a small shop here? Because you got recommended by friends that went to his rubber chicken luncheons?
__________________
We need HALAL now!
  #228  
Old 05-27-2023, 06:24 PM
MDFlyer MDFlyer is offline
Senior Member
Join Date: Mar 2022
Posts: 122
Thanks: 18
Thanked 80 Times in 58 Posts
Default

Quote:
Originally Posted by Gpsma View Post
Mr Hadaway…did you look at what Mr Whitaker invested you in? Or did you give him all your money and let him do what he wanted?

As many people have said…go with the big guys, fidelity, shwab, vanguard…tell them your risk tolerance and they will kerp your investments in that lane.

Sorry you lost you money…but why go to a small shop here? Because you got recommended by friends that went to his rubber chicken luncheons?
To answer your first question, it is a combination of both, I talked with him about my risk tolerances and he suggested certain things that I should be invested in. This system worked out very well for the first 6 years or so, Michael L Whitaker suggested good dividend-paying investments. I truly believe that Michael's lifestyle and financial needs got the best of him and he started putting, not only me but others in more and more risky investments that brought him higher commissions but were not good for his clients. I have known him for over 10 years and have seen this play out over the years. To answer your second question I did attend many of his "rubber chicken" dinners paid for by GWG and other investment entities but this was long after I began with Michael L Whitaker and Associates as my advisor. I think this might be referred to as "keeping the flock together".
  #229  
Old 05-30-2023, 01:43 PM
MDFlyer MDFlyer is offline
Senior Member
Join Date: Mar 2022
Posts: 122
Thanks: 18
Thanked 80 Times in 58 Posts
Default

Quote:
Originally Posted by MDFlyer View Post
Questions for Michael L Whitaker. 1. Did you own stock (L Bonds) in GWG? 2. When did you and or your family sell the investments in GWG? 3. Did you know that GWG was in trouble when you told your clients not to sell their investments in GWG? I don't expect answers to these questions as Michael L Whitaker only posts when he thinks it is to his advantage or when he wants to OUT someone.
Just as I thought NO answer to my questions. I take that to be proof that he owned GWG and sold it before they went bankrupt and before he told any of his clients, with the exception of a few family and friends, that he had information the GWG was in trouble. Maybe his lawyer knows but is not telling either. Insider trading is a crime.
  #230  
Old 05-30-2023, 02:36 PM
BlueStarAirlines's Avatar
BlueStarAirlines BlueStarAirlines is offline
Senior Member
Join Date: Jun 2021
Posts: 279
Thanks: 1,927
Thanked 326 Times in 125 Posts
Default

I'm not sure what possessed me to read all 16 pages of this thread, but it reinforced that there is no good reason to go with any small investment shop....for any reason.

So many lessons here for the general public, but the biggest for me is to stay away from any AUM/Commissioned brokers. I'm glad I use a fiduciary flat-fee investment advisor.
  #231  
Old 05-30-2023, 02:43 PM
Caymus Caymus is offline
Veteran member
Join Date: Mar 2019
Posts: 841
Thanks: 20
Thanked 805 Times in 375 Posts
Default

Quote:
Originally Posted by BlueStarAirlines View Post
I'm not sure what possessed me to read all 16 pages of this thread, but it reinforced that there is no good reason to go with any small investment shop....for any reason.

So many lessons here for the general public, but the biggest for me is to stay away from any AUM/Commissioned brokers. I'm glad I use a fiduciary flat-fee investment advisor.
But did they treat you to a "free" rubber chicken dinner?
  #232  
Old 05-30-2023, 04:03 PM
MDFlyer MDFlyer is offline
Senior Member
Join Date: Mar 2022
Posts: 122
Thanks: 18
Thanked 80 Times in 58 Posts
Default

I would laugh at this comment, but this is not a laughing matter. People fell for the rubber chicken put on by Michael L Whitaker and Associates and GWG and lost millions because of bad advice and high commissions. I agree with the poster that commissioned brokers have more reason to give their clients bad investment advice because their income and lifestyles are dependent upon the commissions. Stay away from AUM/Commissioned brokers.
  #233  
Old 05-30-2023, 06:23 PM
Normal's Avatar
Normal Normal is offline
Gold member
Join Date: Jun 2021
Location: Earth
Posts: 1,296
Thanks: 3,235
Thanked 981 Times in 497 Posts
Default

Moderator, what is the purpose of continuing to keep this private spat on the board? Please move it to financial or whatever. Thanks
__________________
Everywhere

Politics is made up of two words: "Poli," which is Greek for "many," and "tics," which are bloodsucking insects.—Gore Vidal
  #234  
Old 05-30-2023, 06:40 PM
MDFlyer MDFlyer is offline
Senior Member
Join Date: Mar 2022
Posts: 122
Thanks: 18
Thanked 80 Times in 58 Posts
Default

Quote:
Originally Posted by Normal View Post
Moderator, what is the purpose of continuing to keep this private spat on the board? Please move it to financial or whatever. Thanks
It doesn't seem to me that this is "a private spat". This concerns many seniors and others that lost millions of dollars dealing with Michael L. Whitaker and Associates.
  #235  
Old 05-30-2023, 07:01 PM
OrangeBlossomBaby OrangeBlossomBaby is offline
Sage
Join Date: Feb 2015
Posts: 8,422
Thanks: 6,788
Thanked 9,374 Times in 3,051 Posts
Default

Quote:
Originally Posted by MDFlyer View Post
It doesn't seem to me that this is "a private spat". This concerns many seniors and others that lost millions of dollars dealing with Michael L. Whitaker and Associates.
I haven't lost a dime with them. You did very well for six years. You should've cut bait and run while you had the chance. You chose otherwise. That's what happens when you gamble your money. It sucks, but it's a risk you choose to take. No one forced you to hold.
  #236  
Old 05-30-2023, 07:34 PM
MDFlyer MDFlyer is offline
Senior Member
Join Date: Mar 2022
Posts: 122
Thanks: 18
Thanked 80 Times in 58 Posts
Default

Quote:
Originally Posted by OrangeBlossomBaby View Post
I haven't lost a dime with them. You did very well for six years. You should've cut bait and run while you had the chance. You chose otherwise. That's what happens when you gamble your money. It sucks, but it's a risk you choose to take. No one forced you to hold.
You are right I did do well for 5 or 6 years. This led me to a FALSE trust and that is why I believed Mr. Whitaker when he suggested GWG and FS investments as low risk. I am glad you did not have any GWG or FS investments through Michael L Whitaker and Associates.
  #237  
Old 05-31-2023, 07:28 AM
Toymeister's Avatar
Toymeister Toymeister is offline
Platinum member
Join Date: Sep 2016
Posts: 1,680
Thanks: 343
Thanked 2,335 Times in 729 Posts
Default

The question MD Flyer should have is not if Michael Whitaker had GWL bonds or not, rather when did Whitaker have SUPERIOR KNOWLEDGE of GWL's impending failure. GWL did not file disclosures Whitaker knew this, apparently, and did not notify clients.

If true, then this is clearly a case of withholding superior knowledge. MD Flyer should be arguing Whitaker withheld this superior knowledge to clients whom he had a duty to share it with.
  #238  
Old 05-31-2023, 09:43 AM
MDFlyer MDFlyer is offline
Senior Member
Join Date: Mar 2022
Posts: 122
Thanks: 18
Thanked 80 Times in 58 Posts
Default

Quote:
Originally Posted by Toymeister View Post
The question MD Flyer should have is not if Michael Whitaker had GWL bonds or not, rather when did Whitaker have SUPERIOR KNOWLEDGE of GWL's impending failure. GWL did not file disclosures Whitaker knew this, apparently, and did not notify clients.

If true, then this is clearly a case of withholding superior knowledge. MD Flyer should be arguing Whitaker withheld this superior knowledge to clients whom he had a duty to share it with.
Michael Whitaker did inform us that GWG had missed two reporting quarters but at the same time told us that there was nothing to worry about since they were just having some organizational problems and were in very good financial condition. Since he made statements like this I have to assume that he had insider information on the financial condition of GWG. My point in asking about his ownership of GWG was to point out that he had advanced or "Superior information" that he acted on but did not inform clients about. I am betting that he did have "Superior Information" and acted on insider information.
  #239  
Old 05-31-2023, 02:12 PM
SallyB SallyB is offline
Member
Join Date: Mar 2023
Posts: 78
Thanks: 148
Thanked 41 Times in 25 Posts
Default

Quote:
Originally Posted by justjim View Post
Almost everyone has lost money in the markets. I’ve no dog is this fight but advise
not to put all your money in one basket. Just saying.
This was not money lost in the market. This is a non-publicly traded alternative that was sold "as safe as a bond or mutual fund". The risk was sold as a high-risk investment as SEC has stated it is.
  #240  
Old 05-31-2023, 02:32 PM
Normal's Avatar
Normal Normal is offline
Gold member
Join Date: Jun 2021
Location: Earth
Posts: 1,296
Thanks: 3,235
Thanked 981 Times in 497 Posts
Default

Quote:
Originally Posted by SallyB View Post
This was not money lost in the market. This is a non-publicly traded alternative that was sold "as safe as a bond or mutual fund". The risk was sold as a high-risk investment as SEC has stated it is.
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?
__________________
Everywhere

Politics is made up of two words: "Poli," which is Greek for "many," and "tics," which are bloodsucking insects.—Gore Vidal
Closed Thread

Tags
gwg, michael, parents, bonds, found

Thread Tools

You are viewing a new design of the TOTV site. Click here to revert to the old version.

All times are GMT -5. The time now is 07:25 AM.