NEW YORK–(BUSINESS WIRE)–February 1, 2022–
Zamansky LLC is investigating potential legal claims on behalf of L Bondholders who purchased through a representative of Emerson Equity LLC (“Emerson Equity”) Emerson Equity, based in San Mateo, Calif., was the primary broker and underwriter of over $2 million of L Bonds that were issued by GWG Holdings Inc. (GWGH), an alternative viaiat settlement manager.
On January 15, 2022, GWGH defaulted on $13.6 million in combined interest and principal payments for its Series L bonds. For years, GWGH reported net losses and struggled to file its financial statements on time. In the past six months, GWGH has stopped issuing new L bonds, changed audit firms and issued a “going concern” statement in its financial reports.
The investigation focuses on possible legal action for alleged violations of sales practices by representatives of Emerson Equity. Emerson Equity representatives reportedly recommended L bonds to retirees and other conservative investors as “safe” short-term bonds that paid an attractive 5% interest. In truth, L bonds were risky and speculative investments due to GWGH’s difficult financial situation and lack of a secondary market.
According to investment fraud lawyer Jake Zamansky, holders of L bonds may have individual claims against FINRA for cancellation or to recover losses incurred. As a broker, Emerson Equity had a duty to recommend the L Bonds only to suitable investors who were willing to assume their high risk, and a duty to disclose GWGH’s distressed status. L bonds were unsuitable for conservative or even moderate investors, and totally inappropriate for retirees, says Zamansky. The investigation involves allegations of securities fraud, investment fraud, misrepresentation, breach of fiduciary duty and other sales violations against L bondholders.
If you have invested in L Bonds through an Emerson Equity representative, please contact us to review or discuss your legal rights. You may, at no obligation or cost to you, email [email protected] or call the law firm at (212) 742-1414.
About Zamansky LLC
Zamansky LLC is a leading investment fraud law firm with experience handling securities, hedge funds, ERISA and other shareholder class actions and derivatives litigation . We are investment fraud lawyers who represent both individual and institutional investors. Our practice is nationally recognized for our ability to aggressively pursue business and recover investment losses.
To learn more about Zamansky LLC, please visit our website, http://www.zamansky.com.
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CONTACT: Zamansky LLC
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INDUSTRY KEYWORD: PROFESSIONAL LEGAL SERVICES
SOURCE: Zamansky LLC
Copyright BusinessWire 2022.
PUBLISHED: 02/01/2022 12:43 PM / DISK: 02/01/2022 12:43 PM
Copyright BusinessWire 2022.