L Bond investors have grown concerned over the past few months as GWG missed key SEC filing deadlines and ultimately failed to make scheduled interest payments to investors. In January 2022, GWG announced to investors that it was “evaluating alternatives with respect to its capital structure and liquidity.” April 2022 brought more bad news for investors, as multiple news sources, including the Wall Street Journal, have reported that GWG is preparing to declare bankruptcy. While many hoped they would be able to recoup their L Bond investment, recent announcements and news point to a likelihood that L Bond investors will suffer substantial losses.

L Bonds Are Illiquid

Regardless of whether GWG declares bankruptcy, L Bonds are an “illiquid” investment, meaning there is no market for the purchase or sale of the L Bonds currently held by investors. Moreover, while GWG previously permitted investors to “redeem” (sell back) their L Bonds with just a 6% penalty, GWG has now suspended all redemptions of L Bonds, leaving investors stuck with these investments.

GWG Has Suspended Interest Payments

Even though L Bond investors purchased these products with the expectation that they would receive monthly interest payments at a rate ranging from 5.5% to 8.5%, due to the financial crisis GWG is facing, it has opted to suspend interest payments to investors, cutting off the steady income that drew many investors to these products in the first place.

Regardless of whether GWG ultimately declares bankruptcy, due to the financial issues GWG is facing, it is unlikely that GWG will ever resume these payments.

GWG L Bonds Are Likely Only Worth A Small Percentage Of Their Purchase Value

The unfortunate reality for investors is that once GWG completes its restructuring or bankruptcy process, L Bond investors should only expect to receive a small percentage of their principal investment back.  Moreover, GWG’s restructuring or bankruptcy is likely to last multiple years before final resolution for L Bond investors.

L Bond Investors May Have A Claim Against Their Brokers And Financial Advisers For The Improper Sale Of L Bonds

L Bond investors may have potential claims against their brokerage firms and financial advisers for the improper sale of L Bonds. Among other things, brokerage firms are obligated to conduct due diligence on the investments they recommend, to only recommend investments that are suitable to each investor’s specific financial situation and needs, and to diversify investors’ portfolios so as not to subject them to outsized risk in one speculative and/or illiquid product such as L Bonds.

Silver Law Group represents dozens of L Bond investors and has already filed arbitration claims against several brokerage firms for the improper sale of L Bonds.

Worried About Your L Bond Investment? Contact Silver Law Group To Discuss Your Options

Silver Law Group represents the interests of investors who have been the victims of investment fraud and other financial misconduct. Managing Partner Scott Silver is the chairman of the Securities and Financial Fraud Group of the American Association of Justice and represents investors nationwide in securities investment fraud cases. If you or someone you know invested in L Bonds, please contact Silver Law Group for a confidential consultation at ssilver@silverlaw.com or toll free at (800) 975-4345. We often work on a contingency fee basis, meaning you don’t owe us anything unless and until we recover for you.

For several months, we’ve blogged about GWG Holdings, a Dallas-based company selling L-Bonds, which are not publicly traded and have considerable risk. The bonds are based on life insurance policies and were both risky and illiquid. In fact, in the fine print of GWG’s prospectus, it states, “Investing in our L Bonds may be considered speculative and involves a high degree of risk, including the risk of losing your entire investment.”

But abrupt changes with the company have left investors of those bonds wondering if they are ever going to see their investment funds again.

GWG Chapter 11 Bankruptcy 

The company defaulted on interest and principal payments in February of this year. After the resignation of its accountants in 2021, and the news of an SEC investigation since 2020, GWG Holdings filed for Chapter 11 bankruptcy in April, 2022. This allows the company a chance at restructuring, and allows them time to work out ways to pay creditors and investors.

On April 26, 2022, GWG Holdings filed a Form 8-K stating that the Company had received notice from NASDAQ about the upcoming delisting of its stock, and trading was suspended on April 29^th. NASDAQ may also terminate the company’s listing entirely.

Unfortunately, because the bonds are estimated to be worth 20 to 30 cents on the dollar, bankruptcy may be just stalling the inevitable.

Securities Arbitration, Not Lawsuits

Although there is a class-action lawsuit against GWG Holdings, it may not pay you for your losses.

Written into your customer agreement with your brokerage firm is a fine-print clause that states you must resolve any legal dispute through Financial Industry Regulatory Authority, or FINRA, arbitration proceeding. Less complex and costly than a court case, arbitration may take from 1 year to 18 months.

GWG used broker-dealers around the country to sell these L bonds, primarily Emerson Equity. Since broker-dealers are regulated by FINRA, the agency uses arbitration to settle disputes between investors, their registered representatives, and broker-dealers.

Is Recovery Possible?

Considering the company’s recent Chapter 11 bankruptcy, people who invested in these uninsured and unsecured bonds are wondering if they will see any of their money again. As with many legal cases, the answer is, “it depends.”

A recent disclosure indicates that GWG owes several lenders a considerable level of debt which is senior to the L Bonds. The bonds are “structurally junior” to the rest of the company’s creditors. It also states in the prospectus that GWG is allowed to borrow up to 90% of its assets. All the company’s assets were pledged to these “senior creditors.” There is a strong chance that investors will receive nothing from the bankruptcy, but it’s not yet definite.

The best chance for an investor to recover their investment is to file a FINRA arbitration against the registered representative who sold it to them, as well as the broker-dealer holding their securities license. Brokers have a requirement to offer suitable investments to their clients. This duty of care involves due diligence and ensuring that any investment is match to the client’s risk tolerance.

If you decide to engage in a FINRA arbitration against the broker and firm that marketed these L bonds to you, you will still own your bonds and could still receive funds from GWG’s bankruptcy—if there is any. But arbitration against a broker and broker-dealer doesn’t eliminate you from collecting as an investor from the company after their bankruptcy.

“Wait and see” is not a good strategy in this case. If you are considering arbitration or other legal action against the parties from whom you bought these bonds, it’s important to get started now to avoid prejudicing your ability to recover your monies later.

Did You Invest With GWG?

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today at (800) 975-4345 and let us know how we can help.

Investors Are Owed Principal

Many Seeman Holtz investors allege they have not received principal back after their promissory notes matured. Investors have been told to wait for the company to recapitalize, which they were told would allow the company to pay investors their principal. Despite these assurances, investors continue to wait.

BocaNewsNow.com reported that Seeman Holtz received $4,269,400 in PPP money, and that Marshall Seeman listed his home in Boca Raton for sale for $8,650,000.

Seeman Holtz Is Alleged To Have Sold Unregistered Securities

Seeman Holtz is named for its founders Marshal Seeman and Eric Holtz. The company is an insurance agency and is not licensed as a broker-dealer with state or federal regulators.

State and federal laws require registration and make it illegal for a person to induce the sale or purchase of securities or to effect securities transactions unless they’re properly registered. Broker-dealers are regulated by and required to be registered with the Financial Industry Regulatory Authority (FINRA).

The lawsuits filed by Silver Law Group, which were filed with two other firms, alleges that sales representatives with Seeman Holtz wrongly induced investors (plaintiffs in the suit) to buy unregistered securities.

The complaint states that Seeman Holtz used unregistered dealers to sell promissory notes “to seniors, including Plaintiffs and others, by telling investors that the notes, including the Notes at issue in this case, were safe and secure and would be collateralized by a portfolio of life insurance policies which would provide safety of principal and substantial returns.”

The complaint alleges that the above representations were false and misleading due to the entities not having collateral or being undercollateralized, and other reasons.

Notice of Seeman Holtz auction of its property and casualty business appeared on the website of Rock Creek Advisors. The auction is to occur Monday, June 14 in Delaware.

Contact Silver Law Group If You Are A Seeman Holtz Investor

Silver Law Group represents investors who have losses from unregistered investments, including promissory notes like Para Longevity.

If you invested in any of Seeman Holtz’s offerings, contact Silver Law Group for a confidential consultation at (800) 975-4345 or email ssilver@silverlaw.com. This blog may be considered attorney advertising and should not be relied upon by any person as personal legal advice or creating an attorney-client relationship.

Silver Law Group is a national securities and investment fraud law firm which represents Ponzi scheme victims in claims against the Ponzi schemer and any third parties who materially participated in the fraud or are otherwise liable under the law.

1inMM Alleged Ponzi Scheme

According to the complaint, filed April 5, 2021 in California U.S. District Court, Horwitz and 1inMM issued promissory notes to investors on individual film titles, promising to use the money to purchase distribution rights to a movie, mostly for Latin America, which Horwitz and 1inMM would then sell to outlets like HBO and Netflix at a high profit.

Horwitz sold each note at a per-film principal investment of between $35,000 and $1.5 million, often promising investors a six-to-twelve-month maturity and a 35% to 45% return. One investor, out nearly $9 million, invested in 108 movies with corresponding promissory notes, the SEC complaint says. As a sometimes-film actor, Horwitz sold investors on his film industry experience and connections.

Instead, Horwitz used investor capital to keep the Ponzi scheme going while also underwriting a lavish lifestyle that included the purchase of a $5.7 million home and trips on private jets. According to the SEC, Horwitz’s duplicity extended to faked emails with and forged distribution agreements on titles like “Behind the Walls” and “Run with the Hunted.”

“From early 2020 to at least March 2021, Horwitz has been lulling investors with false promises that he and 1inMM are on the verge of reaching agreements with HBO and/or Netflix, and would soon be able to repay investors from the proceeds of those settlements,” the SEC complaint reads. “To make his lies more convincing, Horwitz shows investors fabricated email communications with representatives of HBO as well as false collections accounts allegedly showing funds available from HBO and Netflix for distribution.”

If you invested in 1nMM Capital between 2014 and 2019, contact Silver Law Group for a no-cost consultation at (800) 975-4345 or ssilver@silverlaw.com. Scott Silver recently presented on prosecuting Ponzi schemes to the American Association of Justice and has a successful track record of recovering money for Ponzi scheme victims.

Silver Law Group is a nationally-recognized class action law firm representing investors. If you have losses from Hebron Technology Co. (HEBT) stock, contact Silver Law Group for a no-cost consultation at (800) 975-4345 or ssilver@silverlaw.com.

Accusations Of Being Insider Enrichment Scheme

Hebron Technology Co. (HEBT) is a Chinese company involved in the manufacture and installation of pumps, valves, pipe fittings, and other products for the pharmaceutical, food and beverage, and other industries.

On June 3, 2020, the investment analyst firm Grizzly research released a report titled “We Believe Hebron Technology Co., Ltd. (HEBT) is an Insider Enrichment Scam without Economic Basis.”

The report cited an almost $26 million related-party transaction that was not disclosed and states that the company’s stock is a “manipulation scheme that engaged in undisclosed related party acquisitions and undisclosed private placement transactions that have artificially inflated the stock price.”

The day the report came out, the stock price fell 36%, causing investors to suffer significant losses.

Did Spartan Securities Group sell you Hebron Technology Co.

Hebron Technology held their initial public offering in 2016 with Spartan Securities Group acting as the sole placement agent. The company has a market cap of $355 million as of this writing.

In 2019, the SEC filed a complaint alleging that broker-dealer Spartan Securities Group, Ltd. and transfer agent Island Capital Management LLC, which does business as Island Stock Transfer, helped create and sell at least 19 purportedly legitimate public companies that were in fact shams. To effectuate the scheme, the complaint alleges that Spartan Securities filed fraudulent applications with Financial Industry Regulatory Authority (FINRA) to publicly list the companies’ common stock and ultimately enable the shares to become free-trading and available to public investors. However, these allegations were unrelated to Hebron Technology.

Hebron Technology Co. (HEBT)

If you suffered losses with Hebron Technology Co. (HEBT), we’d like to hear from you. Contact us to discuss your legal rights and potential options to recover your losses.

Silver Law Group represents the interests of investors who have lost money due to investment fraud. Our attorneys represent investors in class actions against issuers in state or federal court and investors in securities arbitration claims against Wall Street firms for stockbroker misconduct. Silver Law Group is involved in multiple class actions and securities arbitration claims involving securities and investment fraud involving microcap or penny stock allegations.

Scott Silver, Silver Law Group’s managing partner, is the chairman of the Securities and Financial Fraud Group of the American Association of Justice. Please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.

Silver Law Group is a nationally-recognized class action law firm representing investors. If you owned CPI Aerostructures, Inc. (CVU) shares between May 15, 2018 and February 14, 2020 (the class period), contact Silver Law Group for a no-cost consultation at (800) 975-4345 or ssilver@silverlaw.com to discuss potential options. The deadline to apply to be lead plaintiff is April 24, 2020.

CPI Aerostructures Announces Financial Statements Can’t Be Relied Upon

On February 8, 2019, CPI Aerostructures (“CPI”) filed a form 8-K with the Securities and Exchange Commission (SEC), which stated that generally accepted accounting principles had not been properly applied to the company’s financial statements in 2018 and 2019, causing them to overstate their revenue and earnings. As a result, its previously filed forms should not be relied upon and required restatement, the company said.

CPI also disclosed that its management had concluded that the company did not have adequate internal control over financial reporting, and that its disclosure controls and procedures were ineffective.

The news caused CPI’s shares to drop more than 8.5%.

On February 14, 2020, CPI put out a press release stating that its accounting errors meant that its financial statements for fiscal 2018 and 2019 could not be relied upon. That day, CPI’s shares closed down 27%.

The class action alleges that CPI made false and/or misleading statements about its business and “seeks to recover compensable damages caused by Defendants’ violations of the federal securities laws…”

CPI’s Recent Public Offering

In October, 2018, CPI announced that it had closed an underwritten public offering that raised more than $16 million with 2,760,000 shares offered at $6.25 per share. Cannacord Genuity LLC was the bookrunning manager for the offering and B. Riley FBR was the co-manager.

Recovering CPI Aerostructures, (CVU) Losses

If you suffered losses with CPI Aerostructures, we’d like to hear from you. Contact us to discuss your legal rights and potential options to recover your losses.

Silver Law Group represents the interests of investors who have been the victims of investment fraud. Our attorneys represent investors in class actions against issuers in state or federal court and investors in securities arbitration claims against Wall Street firms for stockbroker misconduct.

Scott Silver, Silver Law Group’s managing partner, is the chairman of the Securities and Financial Fraud Group of the American Association of Justice and represents investors nationwide. Please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.

If you own/ed Canaan Inc. (CAN) shares and have questions regarding your legal rights, or you are in possession of information that is relevant to this matter, contact Silver Law Group for a no-cost consultation at (800) 975-4345 to discuss potential options.

Canaan Inc. (CAN) is a publicly-traded Chinese company that designs and sells Bitcoin mining equipment. The company held its initial public offering (IPO) in November, 2019, raising $90 million. Citigroup Inc., China Renaissance Holdings Ltd., and CMB International Capital Ltd. were lead managers for the offering. The company reportedly lost Credit Suisse Group AG as its lead underwriter before the IPO.

Canaan Inc. (CAN) Alleged To Have Engaged In Related-Party Transactions

The investigation concerns whether Canaan failed to disclose important information and/or issued false and misleading statements to investors.

On February 20, 2020, an investment analyst writing under the name “Marcus Aurelius” published a research report titled “Canaan Fodder” which alleged that Canaan engaged in multiple undisclosed related-party transactions that did not have economic substance.

Specifically, the report alleges that weeks before Canaan’s IPO a small Hong Kong company called Grandshores announced that it would purchase up to $150 million worth of Canaan’s equipment even though Grandshores reportedly had only $16 million in cash on hand. The report states that the chairman of Grandshores owns a significant amount of Canaan’s stock, which was not disclosed in Canaan’s SEC filings.

Following the publishing of the report, Canaan’s share price dropped significantly, causing shareholders to suffer damages.

A class in this case has not been certified and a deadline has not yet been set to apply to be lead plaintiff.

Recovering Money Lost With Canaan (CAN) Stock

Silver Law Group represents the interests of investors who have losses related to investment fraud. Our attorneys represent investors in class actions against issuers in state or federal court, investors in FINRA arbitration claims against Wall Street firms for stockbroker misconduct, and SEC whistleblowers.

Scott Silver, Silver Law Group’s managing partner, is the chairman of the Securities and Financial Fraud Group of the American Association of Justice and represents investors nationwide. Please contact Scott Silver of the Silver Law Group for a consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.

Brookdale Senior Living Inc. (BKD) is a publicly-traded company based in Tennessee that owns and operates over 750 senior living facilities in 45 states. With 38,400 full-time employees and $4 billion in revenue in 2019, Brookdale is the largest senior living community operator in the country.

Brookdale Alleged To Have Insufficient Staffing

On April 20, 2020 it was reported that a proposed class action lawsuit had been filed against Brookdale in the U.S. District Court of Middle Tennessee, alleging that the company had “insufficient staffing” at its facilities in order to meet its financial goals. The lawsuit alleges that Brookdale failed to deliver on its promise of basic care and services.

The proposed class of plaintiffs are current and former residents of Brookdale facilities in North Carolina. Brookdale denies the claims, but has not filed a response yet.

After the news came out, the company’s stock price fell more than 15% over the next two trading sessions, causing significant losses for investors.

Recovering Money Lost With Brookdale Senior Living Inc. (BKD) Stock

If you suffered losses with Brookdale Senior Living, we’d like to hear from you. Contact us to discuss your legal rights and potential options to recover losses.

Silver Law Group represents the interests of investors in cases of investment fraud. Our attorneys represent investors in class actions against issuers in state or federal court and investors in securities arbitration claims against Wall Street firms for stockbroker misconduct.

Scott Silver, managing partner of Silver Law Group, is licensed to practice in New York and Florida. Our attorneys handle elder financial fraud issues including claims against financial advisors, stockbrokers and fiduciaries for malfeasance and other misconduct. Elder financial fraud is on the rise and our attorneys are handling multiple cases of theft, misrepresentation, and unsuitability against professionals who claim to be acting in the clients best interest but breach their duties.

Scott Silver, Silver Law Group’s managing partner, is the chairman of the Securities and Financial Fraud Group of the American Association of Justice and represents investors nationwide in securities investment fraud cases. Please contact Scott Silver for a no-cost consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.

Trulieve Cannabis Corp. (TCNNF) Subject Of Class Action Lawsuit

A federal securities class action lawsuit was filed against Trulieve Cannabis for potential violations of federal securities laws. If you purchased Trulieve stock between September 25, 2018 and December 17, 2019 (the class period), please contact Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345 to discuss your options for participating in the class action and recovering your losses.

The deadline to be lead plaintiff (a/k/a class representative) is February 28, 2019.

Trulieve Alleged To Have Misled Investors

Trulieve is a publicly-traded “seed-to-sale” medical marijuana company headquartered in Quincy, Florida, that grows and produces cannabis products and distributes them to its 42 Trulieve branded dispensaries in Florida.

On December 17, 2019, Grizzly Research released an article stating that most of Trulieve’s cannabis was produced in low-quality hoop houses rather than high-quality indoor production, that the company had not disclosed it had real estate transactions with insiders, and that the company had excessively and unreasonably marked up assets.

The news caused the company’s stock to drop almost 13%.

Public Offering

Trulieve held a public offering in 2019 that raised $60 million. Cannacord Genuity Corp. was the exclusive agent for the offering.

Recovering Money Lost With Trulieve Cannabis Corp. (TCNNF) Stock

If you suffered losses with Trulieve Cannabis, we’d like to hear from you. Contact us to discuss your legal rights and potential options to recover your losses.

Cannabis lawsuits have become more common as many cannabis companies fail to meet expectations. Our attorneys handle cannabis litigation for investors as well as disputes over the quality and quantity of CBD or cannabis in various products.

Silver Law Group represents the interests of investors who have been the victims of investment fraud. Our attorneys represent investors in class actions against issuers in state or federal court and investors in securities arbitration claims against Wall Street firms for stockbroker misconduct. Scott Silver is the chairman of the Securities and Financial Fraud Group of the American Association of Justice and represents investors nationwide in securities investment fraud cases. Please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.

FINRA Issued A Permanent Bar In June 2019

According to FINRA’s Letter of Acceptance, Waiver and Consent (AWC), over the past five years, “while associated with FINRA member firms, Booth converted customer funds in violation of FINRA Rules 2150(a) and 2010.” Booth consented to findings that customers entrusted him with millions of dollars to invest on their behalf, and that Booth deposited the funds into his own account and used them for personal use. Due to this conduct, FINRA issued a permanent bar from the industry.

SEC Issued A Permanent Bar In November 2019

According to the SEC, Booth pleaded guilty to one count of securities fraud, leading to a permanent bar from the industry. The SEC’s Order stated that “Booth misappropriated approximately $4.9 million from approximately 40 investors” by making “false or misleading statements to investors” and “telling them their assets would be used to purchase securities.” However, Booth in reality “used investors’ assets to pay for his personal and business expenses and to make payments to other investors.”

James Booth Also Facing Criminal Charges

In September 2019, the United States Attorney for the Southern District of New York unsealed an indictment charging Booth with securities fraud, wire fraud, and investment adviser fraud in connection with his scheme.  Among other things, the indictment highlights that:

• Booth convinced a recently widowed elderly investor to move money she received from her late husband’s pension into a company called “Insurance Trends, Inc.” Booth falsely promised the investor that she would have $1 million by the time she was 100 years old. As a result of these false assurances, the investor entrusted Booth with more than $600,000.
• Booth convinced another investor to move his money into an investment product that Booth said would never lose its principal and would grow with the market. Based on this false representation, the investor moved money he had set aside for his child’s college expenses to Booth. Booth subsequently failed to provide the investor with any documentation of his investment or allow the investor to redeem his investment.
• Booth convinced another elderly investor to withdraw money from an annuity established for the care of his disabled sibling and invest the money with Booth. The investor believed that Booth would invest the money for the benefit of the investor’s sibling’s continued care.

To conceal his scheme, the indictment indicates that Booth fabricated account statements and used money obtained from new investors to make payments to previous investors, hallmark traits of a Ponzi scheme.

FINRA Customer Disputes Pile Up Against James Booth

Booth currently faces 24 pending customer disputes, all of which were initiated in 2019 and relate to the conduct detailed above. Among other things, these disputes allege that Booth misappropriated customer funds by means of misrepresentation and deceit and used the funds to support his Ponzi scheme.

Booth settled several customer disputes arising out of this conduct. Specifically, in July 2019, he settled four customer disputes alleging that he solicited the customers to write checks payable to a company Booth controlled.  According to Booth’s CRD Report, published by FINRA, Booth settled the disputes for $50,651, $18,000, $45,000, and $27,970.

Were You Or Someone You Know The Victim Of Financial Fraud?

In addition to unlawfully obtaining and converting client funds, the conduct Booth engaged in—the sale of unapproved investment products—is referred to in the industry as “selling away,” which constitutes a violation of securities laws. The unapproved investments are often illegitimate business ventures, or even in Booth’s case, components of a Ponzi scheme.

Furthermore, brokerage firms have a responsibility to supervise their representatives so as to prevent the type of scheme orchestrated by Booth. Firms must also take steps to ensure that their representatives follow all securities rules and regulations, as well as internal policies and procedures. Failure to uphold these standards could render the brokerage firm liable for the losses suffered by customers.

Silver Law Group represents investors nationwide who were victims of financial fraud, including in cases involving “selling away” and/or Ponzi schemes. If you or someone you know lost money investing with James Booth, please contact the Silver Law Group toll free at (800)-975-4345 or email ssilver@silverlaw.com for a confidential consultation.