Iorio Law Files $2M FINRA Claim Amid GWG Bonds Sale, CEO Indictment
Iorio Law PLLC, a legal firm specializing in securities arbitration, has initiated a nearly $2 million FINRA arbitration claim. This claim targets a brokerage firm for its role in promoting GWG Holdings Inc. L Bonds to foreign retail investors. The accusation is centered on inadequate due diligence and violations of FINRA’s suitability regulations.
Details of the FINRA Claim
The arbitration claim (FINRA No. 25-02280) highlights instances where inexperienced brokers recommended GWG L Bonds. Notably, one broker advised a 21-year-old foreign college student in New York to invest $800,000 in late 2019, despite the student’s lack of investment experience. Additionally, this broker facilitated purchases totaling $1.15 million for other foreign investors.
Former CEO Indicted
The timing of this claim coincides with the indictment of Bradley Heppner, former CEO and Board Chairman of GWG Holdings. Filed by the U.S. Department of Justice, the indictment charges Heppner with securities fraud, wire fraud, and record falsification. He is accused of misappropriating over $150 million from GWG for personal gains, including luxury renovations.
Impact on Investors
This indictment underscores systemic issues and misconduct that contributed to GWG Holdings’ downfall, ultimately leading to significant investor losses. August M. Iorio, the founder of Iorio Law PLLC, stated that this criminal indictment corroborates longstanding concerns about the flawed nature of GWG’s products and the negligence of many brokers.
Urgent Action Needed for Investors
Iorio Law PLLC is urging investors who purchased GWG L Bonds, particularly between late 2019 and 2020, to act swiftly. They face approaching deadlines for filing claims, which are subject to strict regulations regarding eligibility and statutes of limitations. Failure to file could result in the loss of potential recourse for their investments.
Background on GWG L Bonds
GWG Holdings, based in Dallas, raised approximately $2 billion through its L Bond program, which marketed these high-commission securities as income-producing investments. However, the company defaulted on its obligations in 2022 and subsequently entered Chapter 11 bankruptcy. Current estimates suggest that investors might only recover 2%–3% of their initial investments, according to court documents.
Iorio Law’s Commitment to Investors
August M. Iorio has secured over $3.8 million for investors through FINRA arbitration related to GWG L Bonds. He continues to advocate for clients across the country against various brokerage firms involved in the securities sale, including Emerson Equity LLC, Western International Securities, Inc., and Centaurus Financial.
For more information on rights and claims related to GWG L Bonds, investors are encouraged to visit the GWG L Bond Investor Recovery Center provided by Iorio Law PLLC.
