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Our experts frequently write blog posts about the findings of the research we are conducting.

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Displaying 4 out of 4 results for "ERS".

L Bond Were Always Impaired

By Craig McCann and Regina Meng

You can download a pdf of this article to print or email here.

Introduction

GWG bonds were always impaired. GWG was able to sell impaired bonds for 10 years because its equity float was too small to be covered by Wall Street analysts, its stock was too thinly traded to short sell and third tier brokerage firms looked the other way in exchange for extraordinary sales commissions.

In "GWG's Decade-long Fraud Started Well Before Beneficient Joined In" we...

GWG's Decade-Long Fraud Started Well Before Beneficient Joined In

By Craig McCann and Regina Meng.

Three Wall Street Journal stories describe alleged diversion of assets at GWG/Beneficient in 2019 and later to entities controlled by its CEO.[1] The WSJ stories mention an SEC investigation into accounting practices at GWG/Beneficient focused on the treatment of intra-company transactions and the calculation of comical "goodwill" Beneficient put on its books as it combined with GWG. In addition to these post 2018 issues, GWG's use of demonstrably unreliable...

Beneficient's Trading is Bad Omen for GWG Bondholder Recoveries

By Craig McCann and Regina Meng.

An image of the GWG Ben logo.


We have found so many red flags in GWG Holdings' public filings years before its bankruptcy filing in 2022 that no unconflicted broker would have recommended GWG's L Bonds and no fully informed investor would have bought them. Nonetheless, $1.3 billion face value of L Bonds remained outstanding at the time of the bankruptcy. These bonds were sold by third tier brokerage firms in pursuit of undisclosed commissions as high as 8%.

We will tell a more...

Blackstone Fiddles as BREIT Burns

By Craig McCann and Regina Meng.

You can download a pdf of this article to print or email here.

Introduction

In December, we argued that Blackstone Real Estate Income Trust ("BREIT") smoothed and inflated its reported returns for years, leading to large investor inflows. [1] We predicted that a run on the bank had started because of Blackstone's prior conduct, leaving it with two very bad options. BREIT could honor redemption requests at posted NAVs and see its NAV cut in half as the NAV...

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