The arbitration claim was filed on behalf of a North Carolina GWG L Bond holder.
—Marc D. Fitapelli, Esq.
NEW YORK, NEW YORK, USA, June 7, 2022 /EINPresswire.com/ — MDF Law announces the filing of a complaint against Dempsey Lord Smith regarding the marketing of GWG L Bonds, an investment offered by GWG Holdings, Inc. Dempsey Lord Smith is a Georgia-based broker-dealer regulated by the Financial Industry Regulatory Authority . The lawsuit was filed in Charlotte, North Carolina, by filing an arbitration complaint with FINRA. The file number is 22-01228. FINRA has already expedited arbitration based on the age of the investor. The investor is suing for loss of principal, interest, and attorney’s fees under the North Carolina Securities Act. The investor is represented by attorneys Marc Fitapelli and Jeffrey Saxon of MDF Law.
GWG Holdings is a Texas-based company that is currently in bankruptcy. It sold billions of dollars of “L bonds” to retail investors before filing for bankruptcy protection. In January 2022, it ceased making interest payments and repayments to all of its L bondholders. GWG’s bankruptcy filing on April 20, 2022 continued with years of bad news. In October 2020, he received a subpoena requesting documents and information from the Securities and Exchange Commission. GWG did not disclose the SEC subpoena to investors until November 2021. Many retail investors bought GWG unaware that the company was under investigation by the SEC.
GWG Holdings marketed L bonds to retail investors nationwide. The investment was sold to seniors, retirees and others looking for a conservative income stream. FINRA’s complaint against Dempsey Lord Smith alleges that it was negligent in approving the sale of the L Bonds. Firms like Dempsey Lord Smith are required by law to undertake independent due diligence on investments like GWG Holdings. We believe that reasonable due diligence could have revealed serious and material issues with this investment. These issues include, for example, GWG Holding’s complex and obtuse business operations as well as its inability to generate profits. Given these issues, it’s no surprise that less than 1% of all brokers nationwide approved the sale of L bonds. We don’t think GWG should have been sold to an investor.
If you bought L Bonds, we want to talk to you. Our attorneys exclusively represent investors in FINRA arbitrations. We have handled hundreds of individual FINRA arbitrations. Our law firm currently represents dozens of individual GWG L bondholders in arbitration cases across the country. Please call 800-767-8040 and ask to speak to attorneys Marc Fitapelli or Jeffrey Saxon to find out why so many L Bondholders have decided to trust MDF Law with their case.
Before GWG filed for bankruptcy, attorney Marc Fitapelli prepared a 15-minute presentation on the case. There is a link to the presentation below. It is also available here: www.GWGCase.com. If you have any questions about this case, please call Marc Fitapelli on his direct line at (212) 658-1501. He and his partner, Jeffrey Saxon, are interested in speaking to investors who have purchased L Bonds through Dempsey Lord Smith or any other broker. We are particularly interested in talking to people who have invested in other illiquid investments, including annuities, non-traded REITs or other “bond” programs.
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GWG L Bonds lawsuit: was your adviser negligent?