Some Advisors Chose Inopportune Time To Boost Bet On GWG Bonds

Posted on May 18th, 2022 at 2:31 PM
Some Advisors Chose Inopportune Time To Boost Bet On GWG Bonds

From the Desk of Jim Eccleston at Eccleston Law:

Financial advisors who chose to double down on GWG are having second thoughts.

Some industry commentators are contending that some advisors likely continued selling GWG’s life settlement-backed bonds while disregarding accounting and reporting statistics released by the company. GWG, which previously sold $1.6 billion in bonds backed by life settlements, voluntarily filed for Chapter 11 bankruptcy protection last month. Therefore, it has become difficult for advisory firms to accurately value the bonds. 

GWG additionally blamed its collapse on the Securities and Exchange Commission’s (SEC’s) investigation of advisory firms that sold the GWG bonds, according to the firm’s bankruptcy filing. There were several other red flags pertaining to the GWG bonds as the firm twice informed the SEC that it would be unable to timely file its quarterly or annual financial statements in 2019. However, advisory firms continued selling GWG’s life settlement-backed bonds as cash inflows from the bonds climbed from $265 million in 2018 to $440 million in 2020, according to the firm’s annual reports.

One advisory firm, Centaurus Financial, apparently increased the amount of GWG’s bonds that its advisors could sell to customers. Bad timing and bad judgement, for sure.  

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

 
 

Tags: eccleston law, advisors, gwg bonds

Return to Archive

TESTIMONIALS

Previous
Next

Fantastic news!!!!  Your professionalism, support and expertise were greatly appreciated.  You made a difficult situation much more bearable.

Marci M.

LATEST NEWS AND ARTICLES

January 12, 2026
Florida Man Indicted in $36 Million Investment Fraud Scheme

According to news sources, federal prosecutors allege that a Florida man orchestrated a multimillion-dollar Ponzi scheme that funded a luxury lifestyle built on stolen investor money, according to the U.S. Department of Justice.

January 9, 2026
FINRA Sanctions Former Wells Fargo Advisor for Profile Falsification and Unauthorized Trading

The Financial Industry Regulatory Authority (FINRA) disciplined former Wells Fargo Advisors broker James E. Holmes III for misconduct tied to his falsifying customer information and unauthorized trading.

January 8, 2026
Georgia Investment Advisor Pleads Guilty to Ponzi Scheme

A former Georgia investment adviser has pleaded guilty to wire fraud after federal prosecutors accused his firm of operating a multiyear Ponzi scheme that cost investors millions of dollars, as reported by Financial Advisor News.