Tr?id=566623520170033&ev=PageView&noscript=1

GWG Bondholders Prepare To File Suit Against Financial Advisory Firms and Executives

Posted on January 5th, 2023 at 10:36 AM
GWG Bondholders Prepare To File Suit Against Financial Advisory Firms and Executives

A group representing nearly 27,000 retail investors is set to file suit against GWG Holdings’ executives as well as the financial advisory firms that marketed and sold $1.6 billion worth of GWG L bonds, according to a recent bankruptcy court filing in Houston.

The GWG official committee of bondholders has claimed that GWG Holdings was a “multiyear long fraud orchestrated by Brad Heppner to enrich himself and associated corporate entities by plundering the debtors”, according to the filing. Heppner is the CEO of The Beneficient Company Group, which is the asset manager that took control over GWG in 2019.

“Put simply, GWG was a classic Ponzi scheme”, according to the filing, which additionally stated that the group intends to file suit against Heppner, certain financial advisory firms, and other executives. While the filing did not name specific financial advisory firms that sold the L Bonds, the filing alleged that at least 145 broker-dealers marketed GWG’s product. According to the filing, each GWG L Bond owner invested less than $45,000 on average, but the bonds were constantly illiquid and now possess no determined value.

All that said, investors should be aware of their recovery options, including pursuing FINRA arbitration claims on an individual basis. The arbitration alternative may offer advantages over filings in court.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, law, sec, gwg holdings

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

I learned two important things working with Eccleston Law. First, I made a friend and ally with Jim and Steph for life. Secondly, and this is a crucial life lesson - if you need counsel, then seek out the very best. Jim was referred to me by a most trusted source. I've never had to hire an attorney for anything. Now, I know the value of hiring an important partner. Meticulous, thorough and detailed in preparation is the best way to describe Jim. Brilliant too, I might add. Bottom line, I would highly highly recommend Jim and Stephany for your legal needs. One of the best life decisions I've ever made.

Howard S.

LATEST NEWS AND ARTICLES

1774034084 Law
March 20, 2026
McKinsey Forecasts Sweeping Changes for Wealth Management Over the Next Decade

The U.S.

1773930497 Law
March 19, 2026
Stifel Faces Proposed ERISA Class Action Over 401(k) Fund Performance

According to ThinkAdvisor, Stifel Financial now faces a proposed class action lawsuit that accuses the firm of mismanaging its profit sharing 401(k) retirement plan in violation of the Employee Retirement Income Security Act (ERISA).

1773851287 Law
March 18, 2026
LPL and Ameriprise Notify Clients of Cybersecurity Incidents Involving Account Access

LPL Financial and Ameriprise Financial Services recently notified certain clients about separate cybersecurity incidents that exposed private information and, in one case, led to unauthorized trading activity.