Law Firm Continues to File Arbitrations Against Western International Securities Regarding GWG L Bonds

Marc D. Fitapelli, Esq.

The recent filing of a complaint concerns sales made by Gaylord Rohloff. Mr. Rohloff was not personally named in the filing.

We have sued Western International Securities several times on behalf of GWG L bondholders. Call me and let’s talk about your case.

—Marc D. Fitapelli, Esq.

LOS ANGELES, CA, USA, August 26, 2022 / — MDF Law announces the filing of an arbitration claim against Western International Titles regarding the sale of GWG L Bonds, an investment offered by GWG Holdings. The case was filed with the Financial Industry Regulatory Authority, or FINRA, in Los Angeles, California. This is file 22-01888. Client requests reimbursement of principal, interest and attorney’s fees. Gaylord Rohloff was the Western International Securities representative who recommended the investment. He is not personally named in the lawsuit.

The law firm represents investors in multiple individual arbitrations against Western International Securities. On August 4, 2022, MDF Law issued a similar announcement regarding broker Western International Fariba Madison, which is the subject of a $500,000 customer complaint to FINRA. The law firm believes that Western International failed to exercise due diligence before selling L bonds to its clients. MDF Law’s attorney also believes that many Western International clients were misled into believing that L bonds were conservative or moderate investments. Some investors may be able to successfully sue Western International to recover their principal, interest and attorney’s fees. If you were a client of Western International and invested more than $100,000 in L bonds after January 1, 2018, our lawyers are interested in talking to you. Please call our law firm at 800-767-8040 and ask to speak to attorneys Marc Fitapelli or Jeffrey Saxon. Do not be too long.

Western International, like all licensed brokers, must adhere to strict rules of conduct relating to the sale of securities. One of its most basic obligations under these rules is to perform due diligence (i.e. investigate the merits) of investments that are sold to the public. On June 15, 2022, the Securities and Exchange Commissioned filed a complaint against Western International, alleging that representatives of the brokerage firm did not understand the risks of L bonds. In this complaint, the SEC seeks civil penalty as well as reimbursement (return) commissions. Significantly, the government is not asking for restitution from investors. Investors who wish to recover their principal should retain their own attorney and file arbitration against Western International Securities.

In its suit against Western International, the SEC said L bonds were “high risk, illiquid, and suitable only for clients with substantial financial resources.” This language came straight from GWG’s own 2020 prospectus for the sale of L Bonds. GWG described the L Bonds as containing a “high degree of risk, including the risk of losing [one’s] the entire investment…” In fact, the L Bonds had no credit rating and were not covered by any insurance policy. Despite this, L bonds were regularly marketed to potential investors as a conservative investment with a guaranteed return on investment.
Under the rule known as “Reg BI”, brokers, including Western International and others who have recommended GWG to its clients, have a legal responsibility to recommend investments in the best interests of its clients. The SEC accused Western International of violating this requirement because some of the salespeople who recommended GWG failed to understand the risks of investing. In some cases, there were no reasonable grounds to believe that these recommendations were in the best interests of clients.

On April 20, 2022, GWG Holdings filed for Chapter 11 bankruptcy protection in Texas. Prior to filing for bankruptcy, GWG Holdings ceased monthly interest payments to L bondholders. GWG Holdings made its last interest payment to investors in December 2021. Additionally, prior to filing for bankruptcy, GWG announced that it was under investigation by the Securities and Exchange Commission. Important issues surrounding the bankruptcy, including payments to investors, have yet to be decided by the court. Periodic updates on GWG Holdings are provided here:

If you have invested in GWG L bonds, you may be able to recover your losses if one of the following situations applies to you:

• You are a conservative or moderate investor;
• You were retired or close to retirement at the time of the placement;
• You invested after January 1, 2018;
• You weren’t ready to lose 100% of your capital.

MDF Law is a New York-based law firm that represents investors nationwide. The law firm currently represents dozens of individual L-bondholders who have lost more than $10 million collectively with GWG Holdings. If you or someone you know has lost more than $100,000 investing in GWG L bonds through Western International Securities, please contact attorneys Marc Fitapelli or Jeffrey Saxon at 800-767-8040. Please visit our website to learn more about this investigation and our law firm.

28 Liberty Street, 30th Floor
New York, New York 10005
Tel- 800-767-8040

Marc Fitapelli
+1 212-203-9300
write to us here

Western International sued over GWG L bonds

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