Iorio Altamirano LLP, a securities arbitration law firm based in New York, NY, is investigating potential securities arbitration claims against Western International Securities, Inc. for its sale of L Bonds issued by GWG Holdings, Inc. Upon information and belief, Western International Securities, Inc. was a part of Emerson Equity LLC’s network of broker-dealers who sold the speculative, high-risk, and illiquid GWG L Bonds. Iorio Altamirano LLP has spoken to several retail investors who purchased GWG L Bonds through the recommendation of broker Dan Beech, who was registered with Western International Securities in Westlake Village, CA, from May 10, 2016, until March 9, 2022.
On April 20, 2022, GWG Holdings, Inc. filed for Chapter 11 bankruptcy, allowing GWG Holdings to propose a reorganization plan. However, many GWG L Bond investors, who have not received interest or maturity payments since January 2022, are skeptical that they will see a return of their invested capital. Investment News has reported that one anonymous GWG L bond investor estimates that the GWG L Bonds may now be worth 20 to 30 cents on the dollar.
According to the bankruptcy filings, the SEC has been investigating the sales practices related to GWG L Bonds. We believe that this investigation includes the sales practices of Emerson Equity and its regional broker-dealers, such as Western International Securities, Inc.
Brokerage firms like Western International Securities, Inc. are required to make investment recommendations that are suitable and in the best interest of their customers. Brokerage firms and financial advisors must also disclose all material facts and risks of a security when making a recommendation. Firms and brokers must also conduct reasonable due diligence on products they offer before recommending them to any clients. When a firm or advisor fails to meet these standards of conduct, they can be held liable for damages.
Investors who purchased the L Bonds offered by GWG Holdings are encouraged to contact Iorio Altamirano LLP for a free and confidential consultation and to review their legal rights. We can review and analyze potential claims and advise individuals of their legal rights without obligation or cost.
For the latest on Iorio Altamirano LLP’s investigation of GWG L Bonds, visit our firm’s investigation page: Iorio Altamirano LLP’s Investigation of GWG L Bonds.
About GWG L Bonds
An L bond is a financial product created by GWG. Initially, GWG pooled money from bond investors to purchase life insurance policies on the secondary market, pay the policy premiums, and then collect the death benefit when the insured individual passed away. However, beginning in 2018, GWG used the investor capital to invest in a new business model, which exposed the company to much risker alternative assets. Many GWG L Bond investors were utterly unaware that GWG materially reoriented its business model, which, in our view, made it a much bigger credit risk. Additionally, many GWG L bond investors were not told by their financial advisors that GWG used investor capital to pay out the high distributions owed to other GWG L Bond investors in a Ponzi-like scheme.
GWG Holdings offered the L Bonds with a maturity ranging from 2 to 7 years and paying an interest rate of 5.50% to 8.50%.
The L Bonds are speculative, high-risk, and illiquid private placement offerings. They are secured by the assets of GWG Holdings and a pledge of all of the common stock by its largest stockholders.
GWG L Bonds were likely not suitable for investors with a low-to-moderate risk tolerance or investors who had liquidity needs.
Western International Securities, Inc. (CRD No. 39262)
Western International Securities, Inc. is an SEC-registered broker-dealer and investment advisor based in Pasadena, CA. The firm was founded in Colorado in April 1995 and has been a FINRA member since November 1995.
Western International Securities, Inc., which is currently licensed to sell securities in 53 U.S. states and territories, currently has a roster of approximately 456 registered brokers and investment advisors across the country.
According to the firm’s public disclosure report, it has been sanctioned 11 times by regulators for alleged misconduct. The most recent sanction was settled in 2021.
Dan Beech (CRD No. 6169844)
Dan Beech is a stockbroker registered with Western International Securities, Inc. in Westlake Village, CA, from May 10, 2016, to March 9, 2022.
Upon information and belief, while registered as a broker with Western International Securities, Inc., Mr. Beech recommended and sold GWG L Bonds to retail investors. Iorio Altamirano LLP is investigating potential securities arbitration claims arising out of Mr. Beech’s sales practices and Western International Securities, Inc.’s supervision of those sales practices.
Mr. Beech has eight years of experience in the securities industry and has been registered with five different firms. He is currently registered with Innovation Partners LLC.
According to Mr. Beech’s public disclosure report, he has had at least two customer complaints. In August 2021, a customer filed a written complaint alleging $62,500 in damages. Mr. Beech settled the matter for the total amount of the alleged damages. In 2019, a customer filed a lawsuit alleging that Mr. Beech made an unsuitable recommendation related to a Real Estate Investment Trust (“REIT”). The dispute was settled for monetary compensation by Western International Securities, Inc.
About Iorio Altamirano LLP
Iorio Altamirano LLP is a securities arbitration law firm located in New York, NY. We represent investors nationwide and vigorously pursue FINRA arbitration claims on behalf of investors to recover investment losses.
We have nearly 20 years of combined experience as securities arbitration lawyers and have helped investors recover investment losses in over 1,000 cases. Our firm will file a FINRA securities arbitration claim on your behalf on a contingency fee basis to try to recover your losses. If we do not obtain a recovery, you do not owe us a legal fee.
If you have invested in L Bonds offered by GWG Holdings through Western International Securities, Inc., contact securities arbitration lawyers August Iorio at email@example.com or Jorge Altamirano at firstname.lastname@example.org. Alternatively, you may call the firm toll-free at (855) 430-4010.