Improper Sales of GWG Renewable Secured Debentures by Certain Investment Professionals
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 Jason Kane.
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 Jason Kane.
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 Wolf Carr & Kane 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 Wolf Carr & Kane, Jason Kane or Joe Peiffer, for a free no-obligation evaluation of their recovery options, at (585) 310-5140.