Improper Sales of GWG Renewable Secured Debentures by Certain Investment Professionals

New Orleans stockbroker fraud attorney

New Orleans stockbroker fraud attorney

Certain Investment Professionals Allegedly Improperly Sold GWG Renewable Secured Debentures

GWG Renewable Secured Debentures, which began being sold to investors in 2012, were investment instruments not secured by insurance policies, and were allegedly improperly sold by certain investment professionals, according to a recent Complaint from FINRA’s Department of Enforcement currently under review by attorneys Joe Peiffer and Alan Rosca.

GWG Holdings, Inc., the Complaint notes, purchases life insurance policies on the secondary market at a discount from the policy owner, and then looks to make a profit by collecting the face value of the policy when the insured passes away.

GWG Holdings, Inc., therefore, in order to finance the purchases of these insurance policies, borrows money from financial institutions or investors. The Peiffer Wolf securities lawyers are currently investigating the improper sale of GWG Renewable Secured Debentures by certain investment professionals.

The GWG Prospectus States that Their Investment Generally Not Suitable for Investors that Require Liquidity

GWG Renewable Secured Debentures are allegedly illiquid, and investors do not have access to their principal investment, with the exceptions for death, bankruptcy, or total disability of the investor, according to a recent Complaint from FINRA’s Department of Enforcement currently under review by attorneys Joe Peiffer and Alan Rosca.

This is at least the third disciplinary action that FINRA has brought against a financial advisor or his firm for selling GWG Debentures, the Complaint notes.

One should also note that no allegations of misconduct are made as to the issuer of GWG Renewable Secured Debentures or its affiliates, the Complaint reports. The focus of the investigation is on the sales practices of certain investment professionals who recommended the GWG Debentures to their customers.

Securities Lawyers Investigating

The Peiffer Rosca Wolf securities lawyers often represent investors who lose money as a result of alleged failure to maintain and supply adequate supervisory systems and procedures investment fraud and schemes. They are currently investigating the sales of GWG Renewable Secured Debentures by certain investment professionals. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of the sales of GWG Renewable Secured Debentures by certain investment professionals may contact the securities lawyers at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free no-obligation evaluation of their recovery options, at 888-998-0520.

Alan Rosca (1225 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.