GWG Holdings Investigation

GWG Holdings: Goodman and Nekvasil is Filing Claims for Investors

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Goodman & Nekvasil Is Filing Claims For Investors

Goodman & Nekvasil has been retained by numerous GWG Holdings investors on a contingency fee basis to file arbitration claims against the brokerage firms that sold this investment to them.

What Happened to GWG Holdings, Inc.?

GWG Fails to Make the January 15, 2022 Interest Payment and Principal Payment on its L-Bonds

UPDATE 11/2/23

Goodman & Nekvasil, P.A. wins FINRA Award for a client who purchased
GWG Holdings Bonds

Read Investment News Article Here

UPDATE 5/30/23

Goodman & Nekvasil, P.A. wins FINRA Award for a client who purchased
GWG Holdings Bonds

Read Investment News Article Here

UPDATE 4/17/23

GWG makes clear that the company does NOT have cash available to repay
L Bondholders

GWG makes clear that the company does NOT have cash available to repay L Bondholders.

 In the latest draft of the Summary of Treatment of Bondholders Under the Debtors’ Second Amended Joint Chapter 11 Plan, GWG provides:  The Debtors understand and fully appreciate that Bondholders want to be repaid now the amounts that are owed to them. Unfortunately, the Debtors regret that this is not possible now because the Debtors do not have the cash available that would allow them to do so.

Read Full Summary of Treatment of Bondholders Here

UPDATE 12/15/22

GWG was a Classic Ponzi Scheme - Official Committee of Bondholder Report

Read the Full Statement

In a court filing in the Chapter 11 bankruptcy court, the Official Committee of Bondholders of GWG Holdings Inc. (“Bondholder Committee”) alleged that GWG Holdings was a “classic Ponzi scheme.” Specifically, the Bondholder Committee alleged that GWG Holdings was a “multiyear-long fraud orchestrated by Brad Heppner to enrich himself and associated corporate entities by plundering the debtors.” The allegations are significant in that they were made after the bondholder committees’ investigation, which included access to information that is not in the public domain.

UPDATE 11/14/22

GWG Holdings Senior Executives Resign After Internal Review

Read Announcement Here

UPDATE 8/31/22

SEC Charges Western International Securities, Inc. for Selling GWG L-Bonds

Read Full Article Here

UPDATE 6/21/22

GWG Cuts Off Attorney Access to Creditor Matrix - The Deal

Read Full Article Here

UPDATE 4/22/22

GWG Holdings CFO say SEC Investigating L-Bond Sales Practices

A recent declaration in the GWG Holdings Bankruptcy from Timothy Evans, Chief Financial Officer of GWG Holdings, Inc. said that the SEC, as part of its investigation of the Bond sales practices of its selling group members, issued subpoenas and document requests to individual Broker Firms that were selling or were considering selling GWGH Bonds.

Broker dealers that sold GWG L Bonds were required to perform adequate due diligence on GWGH Bonds investment recommendations they made. They must have ensured that the investment was suitable for the investor taking into consideration the investor’s age, risk tolerance, net worth, financial needs, and investment experience.

If a broker or brokerage firm made an unsuitable investment recommendation or failed to adequately disclose the risks associated with an investment, they may be liable for investment losses through FINRA arbitration.

UPDATE 4/20/22

GWG Files for Bankruptcy

The Wall Street Journal

GWG Holdings, Inc announced that the Company and its subsidiaries have filed Chapter 11 Petitions in the U.S. Bankruptcy Court for the Southern District of Texas.   

Call Goodman & Nekvasil today for more information: 800-500-4442

UPDATE 4/5/22

GWG Prepares for Bankruptcy After Missing Payments to Individual Investors

The Wall Street Journal

According to the Wall Street Journal, GWG had more than $2 billion of total liabilities as of Sept. 30, including close to $1.3 billion of L Bonds, according to its unaudited financial statements. The company previously sought rescue financing that would have enabled it to restructure its balance sheet out of court, but recently shifted to pursuing a loan to finance a chapter 11 proceeding, the people familiar with the matter said.

UPDATE 4/4/22

GWG Fails to File 2021 Annual Report

According to a new filing

On April 1, GWG Holdings, Inc. was unable to file its Annual Report for the year ended December 31, 2021 within the prescribed time period. The Company’s independent registered public accounting firm said in January it will not continue working with GWG. The Company has not engaged an auditor to audit its financial statements for the year ended December 31, 2021, but said it is in the process of reviewing potential candidates.

UPDATE 2/14/22

GWG has more BAD NEWS in a Valentine’s Day Letter to Investors

Investors were disappointed to hear more bad news regarding discontinued interest payment from GWG Holdings. In a letter to investors on February 14, the company says while it is, “identifying and evaluating restructuring alternatives,” the monthly interest, and maturity payments, dividends and redemptions remain paused. The company says the process may take another 3-4 weeks, or longer and will inform the investors, “if and when” the company is able to restart cash payments in the future.”

UPDATE 1/27/22

GWG Fails to Make Interest Payments for L-Bonds

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.

The company also noted that it believes that the filing of its Annual Report on Form 10-K for the year ended December 31, 2021, will likely be late as the independent registered public accounting firm it was working with declined to stand for reappointment. This would also likely result in a voluntary suspension of the sale of L Bonds.

The company’s balance sheet indicates that total outstanding debts significantly exceed reported values of tangible assets. According to the company’s balance sheet, GWG’s tangible assets included the reported fair value of life insurance policies, including policy benefits receivable, of approximately $794.7 million as of its third quarter report, with cash and restricted cash of $67.7 million, and investments in alternative assets of $226.1 million. The total outstanding senior credit facilities were approximately $327.7 million and L Bonds outstanding totaled $1.552 billion.

GWG’s Accountants Express Substantial Doubt About GWGs Ability to Continue as A Going Concern

GWG warned in its form 10K for the year ending December 31, 2020, that, “our current inability to raise capital, recurring losses from operations, negative cash flows from operations, delays in executing our business plans, and potential negative implications of the ongoing SEC non-public, fact-finding investigation raise substantial doubt regarding our ability to continue as a going concern. The report from our independent registered public accounting firm for the year ended December 31, 2020, includes an explanatory paragraph stating that these factors raise substantial doubt about our ability to continue as a going concern.”

GWG Reports Losses of Almost $530 Million Dollars

This form 10K also states the GWG has a history of net losses. The 10K states, “we generated net losses from operations for the years ended December 31, 2020, and 2019 totaling $208.5 million and $151.5 million.” GWG’s press release dated December 8, 2021, reports net losses of $169.8 million in the first three quarters of 2021.

On August 1, 2021, GWG announced that its board of directors determined that certain previously issued financial statements including its annual report for the year ended 2019, and the quarterly reports for the first three quarters of 2020 “should no longer be relied upon.” GWG reported that the Board’s determination was based upon the consultation process with the SEC’s Office of the Chief Accountant (SEC OCA). GWGH noted that following the consultation with the SEC OCA it will consolidate the trusts, that hold secondary alternative assets that GWG has provided loan financing to as part of its core strategy, into its financial statements.

On October 6, 2020, GWG Holdings received a subpoena to produce documents from the Chicago office of the SEC’s Division of Enforcement, informing the Company of the existence of a non-public, fact-finding investigation into GWG Holdings. Since the initial subpoena, GWG Holdings has received subsequent subpoenas from the SEC for additional information. The requested information from the SEC has primarily related to GWG Holdings’ investment products, including its L Bonds, as well as various accounting matters.

What is GWG Holdings, Inc.?

GWG Holdings Inc. (GWGH) finances its portfolio of life insurance assets through the sale of alternative investment products, according to its website. Although these products are touted as offering potentially higher yields than other investment assets that are correlated with the traditional stock and bond markets, they may come at a much greater risk to investors.

What is an L Bond?

An L bond is an alternative investment vehicle that attempts to provide a high yield for a lender in exchange for bearing the risk that an insurance policy premium or benefits may not be paid. An L bond is an unrated life insurance bond that is used to finance the purchase and premium payments of life insurance settlement contracts purchased in the secondary market.

The GWG L Bond prospectus notes, “An investment in the L Bonds involves significant risks, including the risk of losing your entire investment, and may be considered speculative.”

GWG L bonds are illiquid investments, and the shareholders cannot sell them on the secondary market. Shareholders must wait until the bonds mature to redeem the principal amount and they cannot redeem the bond before the maturity date or the death or disability of the original policyholder. According to its prospectus, if GWG agrees to redeem the bond for any other reason, the bondholder will be charged a penalty of 6%.

According to financial statements filed with the SEC in November 2020, the company warns “it may not be able to sell additional L Bonds on terms as favorable to the Company as past transactions or in quantities sufficient to fund all of the Company’s operating requirements.” Further, GWGH may not be able to obtain additional borrowing under existing debt facilities or new borrowings with other third-party lenders.

You May Recover Losses in GWG Holdings, Inc. through FINRA Arbitration

We believe that investors who have sustained losses in GWG Holdings Inc. may be able to recover their losses through a FINRA arbitration claim. If you lost money in GWG Holdings, Inc. you should seek the advice of a lawyer who has experience representing investors in investment fraud and broker negligence cases to discuss their rights.

At Goodman & Nekvasil we work on a contingency basis for every one of our clients. No recovery = no fees or costs means that, as our client, you owe us nothing unless we obtain a recovery on your behalf. Attorney’s fees are only collected if you receive a recovery, and the same is true for costs. We bear the costs of your case throughout the process, only receiving compensation if you recover some of your losses. If you don’t win a recovery, we don’t get paid. We have established a fee structure that not only represents the faith we have in our clients’ cases but also motivates our firm truly to work in your best interest. We have aligned our goals with our clients’ goals, and it allows us aggressively to pursue recoveries with all of our resources. We are devoted to achieving the best outcomes for every one of our clients.

*Disclaimer: The amount stated is before deductions for attorneys’ fees and costs. Prospective clients may not obtain similar results, and results may not be typical. It should not be assumed that your case will have as beneficial a result.



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For more than 26 years, Goodman & Nekvasil has represented investors who have fallen victim to securities and investment fraud in arbitration and litigation across the country.



For more than 26 years Goodman & Nekvasil has represented investors who have been defrauded by their securities brokers in arbitration and litigation across the country.

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Practice Areas

  • Breach of Fiduciary Duty
  • Breach of Promise/Contract
  • Churning
  • Failure to Supervise
  • Lack of Due Diligence
  • Misrepresentations and Omissions
  • Negligence
  • Overconcentration
  • Ponzi Schemes
  • Real Estate Securities
  • Selling Away
  • Stockbroker Fraud
  • Unsuitable Investment
  • Violations of Securities Laws
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