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Lost money in GWG L Bonds? You’re not alone. Altamirano PLLC helps investors hold brokers accountable and recover losses through FINRA arbitration.
GWG raised more than $1.6 billion selling L Bonds pitched as high-yield, safe investments. In reality, they were complex, illiquid products that collapsed, wiping out savings for thousands of everyday investors. Brokers pushed these bonds on retirees and conservative investors without disclosing the true risks.
If your advisor told you GWG L Bonds were “safe” or “low-risk,” you may have a claim. Our firm represents investors in recovering money lost to unsuitable or misrepresented investments. Contact our GWG L Bonds attorney in New York today to learn more.
“I contacted Attorney Altamirano to handle a FINRA arbitration. The result was a settlement far beyond my expectations. Without him, I likely would’ve recovered nothing. If you believe in your case, it’s worth having a conversation with him. “
GWG Holdings Collapse: What Investors Need to Know
GWG Holdings raised billions by selling L Bonds backed by life insurance policies. They promised steady returns but were:
- Illiquid and unrated, with no resale market if you needed your money back
- Unsuitable for retirees, yet often sold to conservative investors
- Propped up by new sales to investors
Following a series of transactions with Beneficient Company Group, L.P. in 2018 and 2019, GWG’s business shifted to focus on providing liquidity to holders of illiquid investments and alternative assets. When new investor funds dried up, the structure collapsed. In April 2022, GWG filed for Chapter 11 bankruptcy. The Wind Down Trust now projects distributions of only 2–3% of invested principal. In plain terms, bondholders are left with pennies on the dollar.
L Bonds were typically issued in 2-, 3-, 5-, and 7-year terms, with interest rates ranging from 5.50% to 8.50%. Unless investors provided notice before maturity, the bonds automatically renewed into new ones with similar terms and rates. More than half of all L Bonds were not redeemed at expiry but rolled into new bonds.
Even before the bankruptcy, GWG’s own SEC filings showed red flags: inflated assumptions, missed projections, and mortality estimates that consistently proved wrong.
Timeline of the Collapse
- 2012–2020: GWG raises $1.6B from retail investors via L Bonds
- 2018–2020: Business shifts focus to Beneficient
- Aug 2020: Merger/restructure with Beneficient
- Oct 2020: SEC subpoenas GWG over accounting and bond sales
- 2021: Auditor resigns; broker-dealers begin dropping L Bonds
- Jan 2022: GWG misses $3.25M interest payment
- Apr 2022: GWG files for Chapter 11 bankruptcy
- 2022–2025: Trustee lawsuits, arbitrations, and SEC sanctions over unsuitable sales and fraud
- Nov 2025: The founder of Beneficient and former chairman of GWG Holdings, Inc. is charged with securities fraud
November 2025 Developments in the GWG Investigation
On November 4, 2025, federal prosecutors in the Southern District of New York unsealed an indictment charging Bradley Heppner, the founder of Beneficient and former chairman of GWG Holdings, Inc., with securities fraud, wire fraud, conspiracy, false statements to auditors, and falsification of records. According to the U.S. Attorney’s Office and the FBI, Heppner is accused of orchestrating a scheme to extract more than $150 million from GWG through a shell entity he controlled, while falsifying records and misleading investors and auditors.
The indictment alleges that between 2018 and 2021, Heppner used his control of GWG to divert funds into Beneficient and ultimately to himself, while falsely representing to GWG’s board that the transactions were legitimate and at arm’s length. Prosecutors say Heppner spent portions of the misappropriated funds on personal expenses, including property renovations and luxury assets.
The case is pending before Judge Jed S. Rakoff in the Southern District of New York.
Why Brokerage Firms May Be Liable for Losses Stemming From GWG’s L Bonds
While federal prosecutors are pursuing charges against GWG’s former leadership, investors also have claims against the brokerage firms and financial advisors that sold GWG L Bonds.
GWG’s bankruptcy does not excuse the brokerage firms that sold these bonds from their duties to clients. Brokerage firms and advisors must recommend only suitable investments and disclose all material risks. Selling GWG L Bonds to retirees and conservative investors was inconsistent with those duties.
Many investors were told the bonds were “safe” or “low-risk,” without being informed of their illiquidity, complexity, or GWG’s deteriorating financial condition. Misrepresentations and omissions of this kind are violations of FINRA rules, including FINRA’s suitability rules. These failures make brokerage firms liable in FINRA arbitration.
Bankruptcy Recovery vs. Arbitration
GWG’s bankruptcy has left bondholders with pennies on the dollar. The Wind Down Trust estimates cumulative distributions between 2.694% and 3.438% of invested principal. That means an investor who put in $100,000 may receive as little as $2,693.97 or as much as $3,438.03. For most investors, that is not meaningful recovery.
The better path is a claim against the brokerage firm that sold you the bonds. Brokers had a duty to recommend only suitable investments and to disclose the risks. Many violated those obligations. Through FINRA arbitration, investors can pursue their brokers and firms directly for the full amount of their losses.
Brokers had a duty to recommend only suitable investments and to disclose the risks. Many violated those obligations. Through FINRA arbitration, investors can pursue their brokers and firms directly for the full amount of their losses.
Why FINRA Arbitration Works for Investors
The SEC has already charged brokerage firms and individual brokers for selling GWG L Bonds to retirees and other retail investors, finding that they were recommended despite being high risk, illiquid, and unsuitable for many clients. FINRA arbitration gives investors a forum to pursue their own recovery. It offers a faster, confidential process designed to hold brokerage firms accountable. Even if GWG itself is bankrupt, the firm that sold you the bonds may still be liable.
Recent arbitration awards have returned substantial damages to investors harmed by unsuitable products.
Real Arbitration Awards Involving GWG L Bonds
Arbitration panels across the country have already issued awards to investors who were misled into purchasing GWG L Bonds. Examples include:
- Over $1 million in damages awarded to an investor after the panel found the advisor breached fiduciary duty and violated securities laws in connection with GWG sales.
- $102,000 in damages, plus attorney’s fees and costs, awarded where the arbitrator found the broker-dealer ignored GWG’s deteriorating financials and sold bonds that were not suitable for anyone. The panel noted that reliance on GWG management contacts was not a substitute for proper due diligence of the company’s financial condition.
- More than $240,000 in combined compensatory damages awarded to a family whose trusts were improperly concentrated in GWG bonds, without disclosure of the risks or discussion of safer alternatives.
These results show that panels recognize the unsuitability, misrepresentation, and failure of due diligence surrounding GWG L Bonds and that investors can recover meaningful damages through arbitration.
GWL L Bond Claims: Info & Resources
How We Help Investors Recover
Altamirano PLLC fights to recover losses for GWG investors nationwide. We have extensive experience helping investors recover losses related to GWG L Bonds. We:
- Review your GWG Subscription Agreement, account statements, and related paperwork
- Investigate the brokerage firm and broker that sold you GWG L Bonds
- File your FINRA arbitration claim and advocate for you at every stage
We work on contingency. You pay nothing unless we win money back for you. Schedule a free consultation with our FINRA arbitration lawyer in New York to learn more.
GWG L Bonds: FAQs
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Contact Altamirano PLLC About GWG L Bond Claims Today
If you invested in GWG L Bonds and were told they were “safe” or “low-risk,” you may have a claim against the brokerage firm or broker that sold them to you. Altamirano PLLC represents GWG investors nationwide in FINRA arbitration to recover losses from unsuitable sales and misrepresentations.
Call us at (212) 220-6556 to discuss your options. We handle cases on a contingency fee basis, which means you do not owe us a legal fee unless we recover for you.
Securities claims are time-sensitive. Harmed investors are encouraged to act quickly and contact Altamirano PLLC to speak with an experienced securities lawyer.
