Silver Law Group is pleased to announce that it has won a FINRA arbitration award on behalf of two Boston, Massachusetts investors against AGES Financial Services. The investors sought legal representation after suffering substantial losses investing in GWG, a company which claimed to profit from investing in life insurance policies but has declared bankruptcy amidst massive losses.
Between 2018 and 2019, AGES recommended the investors make multiple purchases of GWG L Bonds, which ultimately collapsed when GWG entered bankruptcy in 2022. Investors are expected to suffer substantial principal losses with little chance of a meaningful recovery from the GWG bankruptcy. Silver Law Group represents investors throughout the United States in similar claims relating to GWG L Bonds, which were predominantly sold by small or regional broker-dealers.
The investors alleged, amongst other allegations, that the brokerage firm failed to conduct adequate due diligence on the L Bonds, misrepresented the risks of the investment, and overconcentrated their portfolios in complex and risky alternative investments while portraying the L Bonds as simple corporate bonds.
A Boston, Massachusetts FINRA arbitration panel ruled in the investors’ favor, awarding them more than $280,000 in damages and interest.
As reported by the Wall Street Journal, investors were kept in the dark about the GWG L Bonds, which offered a fixed rate of return.
“GWG should never have been sold to retail investors, who were frequently told these investments were safe and suitable for retirees and others seeking income” said Scott Silver, managing partner of Silver Law Group and lead attorney in the FINRA arbitration proceeding. According to Silver, the evidence showed that AGES did not conduct proper independent due diligence on this investment, relied too heavily on the insiders at GWG, and sold the bonds even after the investors submitted paperwork seeking only conservative investments.
Ryan Schwamm, an attorney at Silver Law Group who assisted at the hearing and led the examination of the investors, stated “we are glad we were able to help our clients recover the money they need in retirement and to support their families’ healthcare needs.”
Silver Law Group is a leading Securities and Investment Fraud law firm which concentrates on representing investors in FINRA arbitration claims and representing victims of Ponzi schemes in class action litigation. Our attorneys are admitted to practice in Florida and New York and represent investors nationwide.
Along with many other notable cases, Silver Law Group represents a large number of GWG investors in claims against brokerage firms generally alleging that the GWG L Bonds were unsuitable, that brokerage firms failed to conduct adequate due diligence, and that the material risks were not properly disclosed, amongst other allegations. Learn more about us at securitiesfraudattorneys.com.