GWG Senior Execs Resign Amidst Bankruptcy
GWG Holdings Inc. (Nasdaq: GWGH), a financial services firm and sponsor of non-traded direct investment offerings, announced that the president and chief executive officer, Murray T. Holland, and the company’s chief financial officer and treasurer, Timothy L. Evans, have both resigned.
GWG Holdings Inc. (Nasdaq: GWGH), the bankrupt financial services firm and sponsor of non-traded direct investment offerings, announced that the company’s president and chief executive officer, Murray T. Holland, as well as the company’s chief financial officer and treasurer, Timothy L. Evans, have both resigned as executive officers of the company.
Holland and Evans have not resigned from their positions as members of the board of directors of GWG.
Additionally, in an amended 8-k filing with the SEC, the investigations committee of the current board of directors reported that the company had previously falsely reported that the resignations of former board members of Roy W. Bailey, Daniel P. Fine, and Jeffrey N. MacDowell in March 2021 had not resulted as a result of any disagreements with the company. In fact, according to the amended filing, those resignations resulted from disagreements with GWG.
According to the updated filing, the investigations committee informed the current board that the resigning directors had objected to certain terms and parameters of a proposed investment the company was considering.
After filing for Chapter 11 bankruptcy in April 2022, GWG has experienced a series of resignations.
Earlier this year, the company was involved in an ongoing SEC investigation regarding how its L bonds were sold by brokers which affected its ability to raise capital, leading to bankruptcy. The company reportedly sold $1.6 billion in life insurance bonds.
In June 2022, the SEC charged Western International Securities, Inc. and five of its registered brokers with violations of Reg BI when they “sold an unrated, high-risk debt security known as L Bonds to retirees and other retail investors” from GWG.
Over the past 12 months, shares of the company have fallen from $10.55 to $1.03, as of today.
GWG Holdings is a financial services firm based in Dallas, Texas. Through its subsidiary, GWG Life, LLC, GWGH owns and manages a portfolio of life insurance policies that, as of September 30, 2021, included $1.8 billion in face value of life insurance policy benefits.
