Investors Awarded $246K in GWG L Bonds Arbitration Against Ages

In November 2023, a FINRA arbitration panel in Boston ordered Ages Financial Services, Ltd. to pay more than $246,000 in compensatory damages to multiple investors in GWG L Bonds. The award also included 12% annual interest from August 2022 through the date of the award. While the panel denied punitive damages, it issued a brief explained decision noting that the investments were not reviewed for quantitative suitability in relation to the investors’ overall portfolios.

GWG Background

GWG Holdings raised more than $1.6 billion by selling L Bonds to retail investors across the country. The bonds were marketed as income-producing and secured by life insurance policies, with interest rates typically ranging from 5.5% to 8.5% depending on maturity. They were generally issued in 2-, 3-, 5-, or 7-year terms. Unless investors provided notice before maturity, the bonds automatically renewed into new ones.

The GWG L Bonds were high-risk, complex, illiquid, and unrated. There was no resale market if investors needed access to their money and GWG retained discretion to repurchase the bonds at any time without charge or penalty. More than half of all outstanding L Bonds were rolled into new ones at maturity, leaving many retirees and conservative investors locked into a product they could not exit.

Following its transition of capital to Beneficient Company Group, L.P., a related entity, GWG Holdings attracted increased regulatory attention. Officials questioned aspects of the firm’s accounting and the way its L Bonds were being sold to investors. The SEC issued subpoenas in October 2020, expanding its investigation to broker-dealers involved in the distribution process.

In 2021, GWG Holdings’ long-time auditor resigned. The following January, GWG failed to make a $3.25 million interest payment to its bondholders—an early signal of its financial unraveling. By April 2022, the company filed for Chapter 11 bankruptcy. The Wind Down Trust now estimates investors may recover only 2–3% of their invested principal, marking an extraordinary loss for thousands of individuals.

What the Arbitration Panel Found

The investors alleged breach of fiduciary duty, negligence and negligent misrepresentation, breach of contract, and failure to supervise. The claims focused on L Bonds issued by GWG and other illiquid products.

The panel explained that the investments were inappropriate for the investors. Ages Financial Services failed to adequately inform them about the risks, failed to discuss safer alternatives, and did not address the concentration of illiquid investments in their portfolios. The panel found that the investments exceeded 10% of overall portfolios without proper follow-up.

The Award From Arbitration

The arbitration panel awarded damages and interest as follows:

• $209,180.41 in compensatory damages to one investor
• $36,933.12 in compensatory damages to another investor
• Interest on the above sums at 12% per annum from August 23, 2022 through the date of the award
• Hearing session fees split between the parties

The panel denied punitive damages and dismissed one claimant’s case due to lack of evidence.

Why This Award Matters – Investor Update 2025

This case is notable for the panel’s explained decision, which detailed why the GWG L Bond sales were unsuitable and concentrated beyond safe levels. The 12% statutory interest rate further increased the size of the recovery for investors.

Even though GWG filed for bankruptcy, given the trustee’s projection that bondholders may recover only 2–3% of principal invested, investors can still pursue claims against the brokers and firms that sold the bonds. Panels have awarded compensatory damages, interest, and costs in multiple cases. Read more about GWG L Bonds in our GWG L Bonds Claims page. GWG L Bonds are also one example of the risks associated with Alternative Investments, which are often complex and unsuitable for retail investors. 

This award highlights how arbitration continues to deliver meaningful recoveries for GWG L Bond investors. By comparison, the Wind Down Trust estimates that if the District Court approves the settlement with GWG’s former directors and officers, cumulative distributions to bondholders will be only 2.694% to 3.446% of invested principal. That means only $2,694 to $3,446 on a $100,000 investment – a fraction of the losses investors suffered.

Key Takeaway for Investors

Awards like this show that brokerage firms can be held liable for their unsuitable GWG L Bonds sales and concentration beyond safe levels. Investors are recovering damages, plus statutory interest through FINRA arbitration.

FINRA arbitration claims often involve:

• Suitability (FINRA Rule 2111): The bonds were unsuitable given the investors’ portfolios and objectives. 
• Supervision (FINRA Rule 3110): The lack of follow-up on concentrated positions reflected supervisory failures. 

A firm’s failure to disclose and follow up likely also violates the standards of commercial honor set forth in FINRA Rule 2010.

Contact Altamirano PLLC About GWG L Bond Claims Today

If you invested in GWG L Bonds and have losses, call Altamirano PLLC today. Our Principal, Jorge Altamirano, has handled more than 1,500 FINRA arbitration claims and continues to represent GWG investors nationwide in recovering their losses. Many investors were told these bonds were “safe” or “low-risk,” but in reality they were high-risk, complex, illiquid, and unsuitable for investors, including retirees and conservative investors. 

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.

Contact Jorge Altamirano, Principal of Altamirano PLLC
One World Trade Center, 85th Floor
New York, NY 10007
(212) 220-6556
[email protected] 

Securities claims are time-sensitive. Harmed investors are encouraged to act quickly and contact Altamirano PLLC to speak with an experienced securities arbitration lawyer.