L bonds were speculative, high-risk, and illiquid investments that did not have the protections of public securities law. As such, they were unsuitable for retirees and other retail investors. If you lost money investing in l bonds, you may be eligible to file a claim for investment losses with FINRA.
What is happening with GWG?
The firm that issued l bonds, GWG Holdings, was in serious financial trouble and later filed for bankruptcy. As a result, many investors were left with significant investment losses from the purchase of l bonds. If you invested in l bonds, it is important that you act now to protect your rights.
L Bonds were unsecured bonds that were offered by GWG Holdings to raise capital to buy life insurance policies on the secondary market. GWG would then profit from the death benefit when the insured person died. The bonds were structured as a private placement and were not registered with the SEC or regulated by any federal agency. They were marketed and sold by a network of regional broker-dealers, including Emerson Equity LLC and a number of Carlson Law client firms. The brokers were paid hefty commissions in exchange for pitching the L Bonds to individual retail investors.
However, investors could lose their entire principal if the purchased life insurance policies did not pay out or if GWG Holdings called and redeemed their L Bonds before the expected time period. Moreover, it is possible that a brokerage firm failed to conduct an adequate suitability analysis of these investments, and thereby violated the securities laws.