[DAVES]

Originally Posted by MDFlyer

I am willing to take my chances on getting sued by Michael Whitaker if, and that is a big if, GWG ever settles. Number one there might be nothing to sue for since his advice has cost me most of my wealth. The first appearances before the judge did not go very far in building my confidence that GWG will ever return any of my money. It looks like suing Whitaker is the only way to get anything back and that is also slim.

My first name is DAVID. The bible story David vs Goliath, if true the real lesson according to me is that David refused to fight the battle Goliath expected. I would NOT fight in their arena. See my other posted suggestions.

His advice cost me most of my wealth? All need to realize investment sellers are SALESMEN not your friend. Never put most of your wealth into anything. Perhaps too late but hopefully herd by others.

If, I understand what is going on Michael is an employee of a brokerage. Even if he owns the brokerage the company is responsible for Michael's actions if they are unethical. Loss of the license will put the firm out of business.

"First appearance before a judge," Fair or whatever. Our legal system is sort of self perpetuating. Representing yourself to save the outrageous cost for an attorney, you are viewed not with respect but as a bother.

As far as settles, you can bet IF the company is bankrupt, the principals, and legal staff have taken anything of value. Even office furniture will be sold and pocketed.

[DAVES]

Originally Posted by hrhphyllis

In addition, if the company is in bankruptcy you would get nothing anyway thru a lawsuit. I think pull everything from this brokerage immediately, this man took advantage of ur parents & probably pushed the bonds where he made the most commission.

Past experience re bonds. Bearer bonds have not been issued in years. They are book entry. You are forced to have a broker hold them. "Pull everything from this brokerage," as you need a broker to hold them it may be difficult. Years ago I held TAX FREE BONDS.
The brokerage started charging me fees to hold the bonds THEY SOLD ME. The rep who sold me the bonds left and unethically contacted me to transfer my account to the firm he was setting up. Unethical because clearly he took what are supposed to be secured records at the brokerage. I already had an account at Fidelity. They helped me to transfer the bonds to them at no charge to me.

[Gpsma]

Originally Posted by DAVES

Past experience re bonds. Bearer bonds have not been issued in years. They are book entry. You are forced to have a broker hold them. "Pull everything from this brokerage," as you need a broker to hold them it may be difficult. Years ago I held TAX FREE BONDS.
The brokerage started charging me fees to hold the bonds THEY SOLD ME. The rep who sold me the bonds left and unethically contacted me to transfer my account to the firm he was setting up. Unethical because clearly he took what are supposed to be secured records at the brokerage. I already had an account at Fidelity. They helped me to transfer the bonds to them at no charge to me.

How many years ago are u talking about? Years ago a broker didnt hold your bond or stock certicate, they were held by the Depository Trust Company. That ended years ago, u buy a bond or stock..its nothing more than an entry in yoir account.

Sorry for what the OPs mother is going thru but why are people, at this age, dealing with fly by night investment advisors. As some posters siggested..go to Fidelity, Shwab, Vanguard etc.

My guess..glib slaesman giving u a rubber chicken lunch and if its for free Villages will buy imto it

[MDFlyer]

ACCORDING TO HIM, "Michael L. Whitaker & Associates" are not "fly by night investment advisors" Everywhere Whitaker advertises he touts 38 years in business. Another false statement was made to lure you to invest with his firm. This may be the best avenue to look into. He may have been doing some type of insurance sales, or something else in the financial field but having a company to give financial advice was not one of them. On the FINRA page, it says 19 years total in the field.

[Babubhat]

Have you read your agreement. You are likely subject to arbitration which is never good

[MDFlyer]

Please keep this thread alive and well. We need input from the locals in the area that have bought GWG from Michael L. Whitaker and Associates, and other so-called financial advisors in the area. When, what, and how did you handle or are handling GWG and your advisor? If an advisor can use false information in company ads to lure in clients, is it fraud?

[MDFlyer]

Originally Posted by retiredguy123

I think the lawsuits are against GWG. Whitaker is just the broker who is selling financial products.

I think any suit against Michael L Witaker and Associates will be for lack of supervision, not acting as a fiduciary or some other personal lacking. Of course, there is also a possible criminal case for fraud.

[blue skies]

Originally Posted by SallyB

Last week while visiting my parents they informed us they lost close to $100,000 with their broker Michael Whitaker. They invested in a very high-risk company GWG which has filed for bankruptcy about a year ago. My parents were told this was not high-risk by Michael Whitaker and GWG at the lunch where they first meet them. Michael has sent numerous emails to my parents over the last year telling to hang in there. They purchased a product call L Bonds which had a hold time for 7 years at that time Michael told them he had close to $10 million of his clients' money in GWG so they thought it must be safe.

I decided to look into GWG and Michael and the information I have found is not promising.

The information I have found says that this "GWG Was a Classic Ponzi Scheme"-Official Committee of Bondholders of GWG Holdings, Inc. The CEO transfer from the bondholders $258 million into his new company Beneficent. It stated that GWG used new bondholder funds to pay their monthly pay outs to existing bondholders for years and they sold over $1 billion in L Bonds.

I also found that the company Michael works for New Bridge Securities is also under investigation over the GWG L Bonds.

I want my parents to call a lawyer, they are hesitant since they have been with Michael for quite some time.

So, my question is for anyone who still works Michael have to file a lawsuit or are you going to. If you did file a lawsuit, what lawyer did you use and were you happy with the results.

. Contact johnlamolli@flofir.gov or possibly the Silver Law Firm. One is criminal and the other is civil. Also, the federal SEC - Annie Rigler-Berlin.

[SallyB]

Originally Posted by Pairadocs

I'd follow the advice of the person who posted to google GWG lawsuits, apparently more than 50 going. As far a the person who sold the investment NOT being a fiduciary, attorney son tells me that might not be the deciding factor; said the laws concerning investments and "advice" is very "tricky" concerning elderly clients and (in his words) "what the law considers taking into consideration the age and financial situation of the "client", in other words, this person might have culpability even though he may only be a salesperson, not a fiduciary, depends on the circumstances. He also said a class action is probably your best bet, as it might not be large enough single case for a firm to take on. Do the research, you can find the information you need to join a class action.

Thank you for your reply

[SallyB]

Originally Posted by MDFlyer

I think any suit against Michael L Witaker and Associates will be for lack of supervision, not acting as a fiduciary or some other personal lacking. Of course, there is also a possible criminal case for fraud.

I think you are right about being criminal and fraud. My parents are listed as conservative / moderate investors so, selling them a high risk alternative investment was not in their best interest.

[MDFlyer]

Originally Posted by SallyB

Thank you for your reply

Sometimes the decline of a company is very slow and may even not be noticeable. We were with Michael L Whitaker since about 2010 when his company just started, his company was very good then. We told him that after big losses in 2008, we did not want to be in ANY risky stock or positions. Over the years Whitaker slipped into higher and higher risks (they pay higher commissions) until we arrived here with losses well over $100,000 and growing. Some we cannot get out of because of restrictions. He is still saying we haven't lost any money until we take it out. At 79 what are our chances of the market coming back enough to put us in the green?

[MDFlyer]

If true, that GWG is determined to be a Ponzi Scheme shouldn't the brokers, in my case Michael L Whitaker, be partly responsible to their clients? We did rely on these brokers/advisors to guide us but were left hanging when they knew, or should have known, GWG was in trouble.


(Cut and pasted from the original post) The information I have found says that this "GWG Was a Classic Ponzi Scheme"-Official Committee of Bondholders of GWG Holdings, Inc. The CEO transferred from the bondholders $258 million into his new company Beneficent. It stated that GWG used new bondholder funds to pay their monthly payouts to existing bondholders for years and they sold over $1 billion in L Bonds.

I also found that the company Michael works for New Bridge Securities is also under investigation over the GWG L Bonds.

[Plinker]

Here are two more law firms specifically listing Mr. Whitaker as a
salesman of these Ponzi bonds. It’s hard to come to the conclusion that he was working in his clients’ best interest. Although unlikely, it would be just punishment if a court would order a clawback of all commissions paid and made available for restitution to injured parties. A quick check of his disclosure page on FINRA eliminates him as a trusted advisor. There may be many more disclosures on the horizon.

Were You the Victim of Newbridge Securities Corporation Broker Michael Whitaker? | Erez Law

Bonds Category Archives — Page 2 of 2 — Securities Arbitration Lawyers Blog Published by Securities Arbitration Lawyers — Silver Law Group

[MDFlyer]

Originally Posted by Plinker

Here are two more law firms specifically listing Mr. Whitaker as a
salesman of these Ponzi bonds. It’s hard to come to the conclusion that he was working in his clients’ best interest. Although unlikely, it would be just punishment if a court would order a clawback of all commissions paid and made available for restitution to injured parties. A quick check of his disclosure page on FINRA eliminates him as a trusted advisor. There may be many more disclosures on the horizon.

Were You the Victim of Newbridge Securities Corporation Broker Michael Whitaker? | Erez Law

Bonds Category Archives — Page 2 of 2 — Securities Arbitration Lawyers Blog Published by Securities Arbitration Lawyers — Silver Law Group

Yes, Michael L Whitaker pushed the sale of GWG as part of our portfolio with his company. He had many dinners and golf outings sponsored by GWG. If GWG were drugs I would call him a drug pusher. There were other events, that involved investments by my son, that did not look like he was acting as a fiduciary and only in it for the commissions. High risk = High Commissions, Often trades = More Commissions and as the wheel turns it goes faster and faster until it is out of control. The worst part and most telling, in my mind was he did not get us out when he knew they had missed mandatory reporting dates.

[SallyB]

Originally Posted by MDFlyer

If true, that GWG is determined to be a Ponzi Scheme shouldn't the brokers, in my case Michael L Whitaker, be partly responsible to their clients? We did rely on these brokers/advisors to guide us but were left hanging when they knew, or should have known, GWG was in trouble.


(Cut and pasted from the original post) The information I have found says that this "GWG Was a Classic Ponzi Scheme"-Official Committee of Bondholders of GWG Holdings, Inc. The CEO transferred from the bondholders $258 million into his new company Beneficent. It stated that GWG used new bondholder funds to pay their monthly payouts to existing bondholders for years and they sold over $1 billion in L Bonds.

I also found that the company Michael works for New Bridge Securities is also under investigation over the GWG L Bonds.

What I have read is that GWG started "Robbing Peter to Pay Paul" about 5 years before the SEC started to investigate them. Which is a classic Ponzi scheme. In fact, GWG blames the SEC for bringing them down because they started an investigation.

How for the 5 years before the bankruptcy did this go unnoticed by SEC, New Bridge and Michael, isn't that their job.
I guess their commission trumped people's best interests.

What I find unbelievable, is Michael wants my parents and all his other clients is to trust the company that he knows is run by crooks. He states the company that GWG is part owner will be part of will be GWG saving grace, but the new company is owned by the same crooks. How does that even make sense?