We are interested in speaking to investors of IFP that were sold GWG bonds for potentially inappropriate reasons. The SEC has opened an investigation of IFP’s sales of GWG’s L-Bond in light of the SEC’s Regulation Best Interest. Call 303-300-5022.
Advisors recommending investments that are high risk due to heightened commission is a violation of securities laws. GWG bonds are and have always been a highly risky investment. Additionally, alternative investments such as GWG pay an advisor a very high commission to recommend and sell the investment. This creates an inappropriate incentive to advisors to sell the GWG bonds.
A firm has a duty to evaluate the risk of the investments it sells. The investigation also concerns the research into the risk, which should have disclosed at all relevant times that GWG was a highly speculative investment.
IFP asserts that the questions raised by the SEC are true not just for IFP but also a large number of other brokerage and advisory firms. However, the SEC seems to be keenly focused on the sale of GWG by IFP.
It’s not clear how much in GWG bonds IFP advisers sold. GWG Holdings issued $1.6 billion of L bonds, which are backed by life settlements, and more than 140 broker-dealers had agreements to sell the bonds. It’s also unclear what the bonds are worth, but we strongly believe that the bonds are worthless.
The Law Offices of Jeffrey Pederson represents multiple investors concerning losses with GWG. Please call for a free and confidential consultation.
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