As the fallout from the GWG Holdings, Inc. bankruptcy continues to devastate thousands of individual investors, the national investment fraud law firm Haselkorn & Thibaut, P.A. has announced an expanded investigation into the brokerage firms and financial advisors who marketed and sold GWG L Bonds. With over 50 years of combined experience and a 98% success rate, the firm is aggressively pursuing recoveries for investors who were steered into these high-risk, illiquid, and now virtually worthless securities.
While GWG Holdings filed for Chapter 11 bankruptcy protection, many investors remain unaware that their primary path to financial recovery may not lie within the bankruptcy court—where recoveries are often pennies on the dollar—but through FINRA arbitration claims against the financial institutions that sold the bonds.
The GWG L Bond Crisis: A Failure of Due Diligence
GWG L Bonds were speculative, high-yield debt instruments used to finance the purchase of life insurance policies on the secondary market. Despite their complexity and high risk, they were frequently marketed to retirees and conservative investors as “safe,” “stable,” or “income-producing” alternatives to traditional bonds or CDs.
“The tragedy of the GWG collapse is that many of these investors were looking for safety and capital preservation,” said a spokesperson for Haselkorn & Thibaut. “Instead, they were sold a product that was illiquid and highly speculative. Our investigation focuses on whether brokerage firms fulfilled their legal obligations to conduct proper due diligence and ensure these products were suitable for the clients to whom they were recommended.”
Under FINRA rules and Regulation Best Interest (Reg BI), brokerage firms have a non-delegable duty to understand the products they sell and to ensure that any recommendation is in the client’s best interest. Haselkorn & Thibaut is investigating allegations that many firms ignored red flags regarding GWG’s financial health and the inherent risks of the L Bond structure.
A Proven Track Record of Multi-Million Dollar Recoveries
Haselkorn & Thibaut, P.A. has established itself as a powerhouse in the field of securities arbitration. The firm recently secured a significant $1.28 million award against Fidelity Brokerage Services LLC (FINRA Case Nos. 24-00571 and 23-03560). That case involved complex structured note investment products and resulted in a finding of liability for negligence, breach of fiduciary duty, and violations of securities industry rules.
This victory, covered by EIN Presswire, is just one example of the firm’s ability to take on the largest financial institutions in the world and win. The firm’s founding partners, Jason S. Haselkorn and Matthew N. Thibaut, leverage their backgrounds as former Wall Street defense lawyers and licensed securities brokers to provide their clients with an “insider’s perspective” on how these firms operate and how they defend against claims.
National Reach with Local Expertise
With offices in Florida, New York, North Carolina, Arizona, and Texas, Haselkorn & Thibaut provides nationwide representation. The firm’s leadership is highly decorated:
- Jason S. Haselkorn:A Super Lawyer in Securities Litigation (top 5% of attorneys) with a 4.5/5.0 Martindale-Hubbell rating. He served as the Mayor of Juno Beach, Florida from 2016–2022 and has a long history of public service and legal excellence.
- Matthew N. Thibaut:Also a Super Lawyer and former President of the Palm Beach County Estate Planning Council, Mr. Thibaut has been quoted as an expert in Forbes and the Palm Beach Daily News.
Active Investigations into Complex and Failed Products
Beyond GWG L Bonds, the firm is currently representing investors in numerous active FINRA arbitrations involving other problematic or complex investment products, including:
- Delaware Statutory Trusts (DSTs):Claims against firms like Emerson Equity, LLC and Arkadios Capital (Case Nos. 25-02422, 26-00002, etc.) involving Inspired Healthcare Capital (IHC), which recently filed for bankruptcy.
- GPB Capital Holdings:The firm has a long track record of assisting victims of the $1.8 billion GPB Capital fraud, which saw its founders convicted of conspiracy and fraud in August 2024.
- David Lerner Associates:The firm continues to assist clients who invested in Energy 11 and Energy 12 through David Lerner Associates, a firm that recently entered into a $1 million restitution agreement with FINRA for unsuitable recommendations to elderly clients.
Specializing in Investor Protection
Haselkorn & Thibaut specializes in holding FINRA broker-dealers and investment advisors liable for a wide range of improprieties, including:
- Securities Fraud and Ponzi Schemes
- Unsuitable Recommendations and Overconcentration
- Breach of Fiduciary Duty and Elder Financial Abuse
- Churning and Unauthorized Trading
- Failure to Supervise
The firm has substantial experience with non-traded REITs, BDCs, private placements, variable annuities, and structured products. They are particularly dedicated to representing elderly clients who have been victimized by advisors who prioritized high commissions over their fiduciary responsibilities.
No Recovery, No Fee: A Commitment to Justice
Understanding that many investors have already suffered devastating financial blows, Haselkorn & Thibaut operates on a “No Recovery, No Fee” basis. This means clients do not pay attorney’s fees unless the firm successfully recovers money on their behalf. This model allows retail investors to level the playing field against multi-billion dollar brokerage firms without further financial risk.
Time is of the Essence
Investors who purchased GWG L Bonds or other complex products are urged to act quickly. Securities claims are subject to strict statutes of limitation and FINRA eligibility rules. A delay in seeking legal counsel could result in the loss of the right to pursue a claim.
For a free, confidential consultation, contact Haselkorn & Thibaut, P.A. at +1 888-885-7162