Zamansky LLC is investigating potential legal claims on behalf of L Bond holders who purchased through a representative of Emerson Equity LLC (“Emerson Equity”) Emerson Equity, based in San Mateo, California, was the lead broker-dealer and underwriter of over $2 million of L Bonds which were issued by GWG Holdings Inc. (GWGH), an alternative manager of viatical life settlements.
On January 15, 2022, GWGH defaulted on $13.6 million in combined interest and principal payments for its L Bonds series. For years, GWGH has reported net losses and had trouble filing its financial statements on time. Within the last six months, GWGH ceased issuing new L Bonds, changed its auditing firm and issued a “going concern” disclosure to its financial reports.
The investigation concerns potential legal claims for alleged sales practice violations by representatives of Emerson Equity. Representatives of Emerson Equity allegedly recommended L Bonds to retirees and other conservative investors as “safe,” short-term bonds which paid an attractive 5% interest. In truth, L Bonds were risky and speculative investments due to the distressed financial condition of GWGH, and lack of a secondary market.
According to Jake Zamansky, investment fraud attorney, L Bond holders may have individual FINRA claims for rescission or to recover losses suffered. As a broker-dealer, Emerson Equity had a duty to recommend L Bonds only to suitable investors who were willing to incur their high risk, and a duty to disclose GWGH’s distressed state. L Bonds were not suitable for conservative or even moderate investors, and totally inappropriate for retirees, Zamansky states. The investigation concerns alleged securities fraud, investment fraud, misrepresentation, breach of fiduciary duty and other sales violations towards L Bond holders.
If you invested in L Bonds through a representative of Emerson Equity, please contact us to review or discuss your legal rights. You may, without obligation or cost to you, email jake@zamansky.com or call the law firm at (212) 742-1414.
About Zamansky LLC
Zamansky LLC is a leading investment fraud law firm with experience handling securities, hedge fund, ERISA and other shareholder class action and derivative litigation. We are investment fraud attorneys who represent both individual and institutional investors. Our practice is nationally recognized for our ability to aggressively prosecute cases and recover investment losses.
To learn more about Zamansky LLC, please visit our website, http://www.zamansky.com.
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Contacts
Zamansky LLC
50 Broadway - 32nd Floor
New York, NY 10004
Jake Zamansky
212-742-1414
jake@zamansky.com
