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Emerson Equity Sale of GWG L Bonds

Bakhtiari & Harrison is investigating potential claims on behalf of investors who purchased L Bonds of GWG Holdings Inc. (GWGH), through representatives of Emerson Equity LLC.

According to new filings with the SEC on January 18, 2022, due to the decreased sales of its L Bonds, GWG did not make the January 15, 2022 interest payment of approximately $10.35 million and principal payments of approximately $3.25 million with respect to its L Bonds. If the company fails to make the payments in the next 30 days it will result in default, according to the filing.

Representatives from Emerson Equity reportedly advised clients that the L Bonds offered a safe investment opportunity with a conservative 5% interest rate, deeming them suitable and appropriate for retirees and conservative income investors. However, it appears that the L Bonds were, in reality, speculative investments, largely due to the distressed financial state of the bond issuer.

The precarious nature of the investment becomes evident upon reviewing the company’s financial statements. The balance sheet reveals a concerning scenario where the total outstanding debts far exceed the reported values of tangible assets. Specifically, the company reports that the total outstanding amount of L Bonds reaches approximately $1.552 billion, indicating significant financial instability.

In such situations where there may be misleading representation and mismanagement of investment products, the expertise of attorneys well-versed in securities and investment fraud becomes crucial. These attorneys can provide invaluable assistance to investors who have been misled by purportedly safe investment claims that turn out to be high-risk. They thoroughly investigate the discrepancies between the representations made by firms like Emerson Equity and the actual financial risks involved in the investments.

Legal professionals with experience in dealing with cases of securities misrepresentation are adept at navigating the complexities of investment fraud. They work to uncover the extent of misinformation provided to investors and seek remedies either through litigation or other legal resolutions. For investors impacted by the recommendation of L Bonds under questionable pretenses, consulting with a knowledgeable attorney can be a vital step toward recovering potential losses and holding the responsible parties accountable.

These attorneys ensure that all aspects of the case are meticulously examined, from the initial investment advice given to the underlying financial details of the securities involved. By doing so, they help protect the interests of investors, especially those who are more vulnerable like retirees seeking safe investment avenues. Engaging a skilled attorney in such cases not only aids in seeking justice but also reinforces the integrity of investment practices.

Emerson Equity was the lead broker-dealer and underwriter of L Bonds. Emerson Equity has offices in Irvine, Glendale, Woodland Hills, Los Angeles and San Diego, California.

If you are an investor that lost more than $100,000 in GWG L Bonds you should consider all legal options. If you wish to discuss your particular situation and the potential for the recovery of your investment losses, or you have information of interest, please contact us for an evaluation of your potential case.