If you are the proud owner of a specific quantity of GWG L bonds, then you might be wondering why you have not received any payments in the last few months. The rumor has it that the company in charge will soon declare bankruptcy, which would impact a vast majority of its proteges. Fortunately, there are steps you can take to minimize the damage and recover at least a portion of your initial investment. Thus, we recommend you read the following lines and find out what to do if you lost money investing in GWG L bonds.
What Are GWG L Bonds?
GWG L bonds represent a type of investment regarding the repurchase of a life insurance policy. Namely, this strategy implies the insurance carrier who wanted to give up on its policy for some reasons such as inability to pay for monthly indebtedness, urgent need for money, or any other that would involve a third party repurchasing the policy from them.
The point of re-selling the insurance would imply that the one who pays for the second-hand service eventually makes a profit that the policy would deliver in some way. It might imply that the policyholder dies, or the insurance period ends so the insured has the opportunity to collect the expected gains under specific circumstances.
The philosophy behind the GWG L bonds was envisaged to suit both sides of the bargain since the policyholder would be financially settled right away, while the policy purchaser would be reimbursed once they get to charge for the policy. What we should not forget to mention is that the one to which the insurance policy applies had the opportunity to break the deal and raise the money if they agreed to pay 6% penalties for the unplanned actions.
In a nutshell, paying for GWG L bonds was equated to gambling, and the vast majority of investors were not aware of the risk they were exposing their money to. The calculus was there since if you would pay a certain sum for something that would pay off in the long run, then investing your money would make total sense. Unfortunately, a vast majority of investors followed that logic, even though the company never said the investment is safe.
Moreover, the company which issued the bonds clearly stated that they do not promise anything in return because the investors could lose as much as their entire investment. Sadly, their predictions came true since the affiliated service that was in charge of guaranteeing the payment of the profit happens to be in large debt, as well as the mother company. If you were misguided or fooled by promises of making a profit overnight by investing in GWG L bonds, we recommend you seek legal advice at mdf-law.
If Brokers Are to Blame…
A vast majority of investors decided to offer coverage for second-hand insurance policies because they were misguided by their brokers. On one hand, we know how vital it is to have full confidence in your broker, but on the other, we know how easily that type of trust might be gambled by offering bad business pieces of advice.
If someone lied to you in order to make a profit, then you might have a case and should consult your legal representative as soon as possible. Brokers inform their clients about potentially good business moves and warn about potential risks, thus, if they hide the truth even though it has been officially published by a company who issued the bonds, the chances we are talking about fraud are high.
We know that finding a qualified and reliable financial advisor might be tricky, otherwise, you would not be reading this article. Unfortunately, people sometimes become uncomfortable when it comes to asking what is rightfully theirs and neglect the opportunities to recover at least some of their losses.
The job of a financial advisor is to assess whether a peculiar business opportunity is suitable for their client and consider various aspects such as their age, profit prospects, income, different expanses, etc. If they fail to consider the aforementioned and still convince you to make a move, it would mean they were not exactly doing what they were paid to do.
The same approach can be used to describe GWG L bonds-related pieces of advice. Namely, if you were intentionally misled by your financial advisor into buying the bonds that were more likely to squeeze money out of your pocket than to make you a profit, then you might have a case against them in court.
A reliable financial advisor would never recommend you invest in GWG L bonds unless they warned you about potential risks. The catch of having an advisor is not to have someone who would tap your shoulder any time you want to make a business move, moreover, to prevent you from entering high-risk ventures.
Now, you should know that you are not the only one who pays for the services of your financial advisor. Namely, they work on commission, and sometimes they would rather misguide their clients if their actions would suggest they secure higher profit for themselves. The story with GWG L bonds is as clear as a whistle, so if your financial advisor recommended you invest in them without warning you about the high risks the venture brings, you should sue them without having second thoughts, because they knew what they were doing.
Hopefully, the aforementioned pieces of information and suggestions will help you get at least a portion of your investments back. We are aware of how uncomfortable the situation might be, but if you do not stand up for yourself and try to reclaim what was unjustifiably taken from you, you will only make a fool of yourself and encourage the fraudsters to continue with their misdeeds. If they had no trouble leading you to thin ice, you should be proud if you do what you can that they do not attempt to mess with you or anyone else in a similar way ever again. In order to do your best, we suggest you seek legal assistance as soon as you can and hire a representative skilled in handling financial frauds and disputes.