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  • Writer's pictureJoseph Sarachek

Updated: Apr 27, 2022


Trade Harvest Industrial, Ltd. (“Trade Harvest”), an international manufacturer of garments, was awarded $469,000 on February 25, 2022 by the Superior Court of California, L.A. Division, Southeast District (Case No. 20NWCV00518) after Digital Brands Group (“DBGI”), a publicly traded company, and two of its affiliates defaulted on its obligations. DBGI and its divisions, Bailey 44 & Demin L.A., were subject to a judicially mediated settlement agreement. Trade Harvest now has a Writ of Attachment and a lien in place

Trade Harvest’s CEO, Climas Lo, wrote DBGI’s Board of Directors a letter on Monday, April 18, 2022 asking the Board to “meet your obligations to us as your creditor” before proceeding with further acquisitions. DBGI on Monday filed an S-1 statement with the Securities & Exchange Commission seeking to raise more money.

Trade Harvest is represented by the Sarachek Law Firm, a leading creditors’ rights firm specializing in the collection of trade receivables which services over 800 domestic and international clients, from the United States to China, India, Mexico, South Korea, Vietnam, Egypt and many other countries.

  • Writer's pictureJoseph Sarachek

Updated: Apr 21, 2022

GWG Holdings filed for Chapter 11 bankruptcy on April 20, 2022 in the Southern District of Texas.

GWG Holdings Inc. (GWGH) is a public company that financed its portfolio of life insurance assets through the sale of bonds, preferred equity and common stock.

GWG sold approximately $1.5 billion in L Bonds to 33,000 investors. An L bond attempts to provide a high yield for a lender in exchange for bearing the risk that an insurance policy premium or benefits may not be paid. An L bond is an unrated life insurance bond that is used to finance the purchase and premium payments of life insurance settlement contracts purchased in the secondary market.

L bonds are illiquid investments, and the holders cannot sell them on the secondary market. Holders must wait until the bonds mature to redeem the principal amount and they cannot redeem the bond before the maturity date or the death or disability of the original policyholder.

On April 4, the Wall Street Journal reported that GWG is getting ready to file for chapter 11 bankruptcy.

Previously, GWG sent investors a letter that it was suspending interest payments and exploring restructuring alternatives.

L bond investors need representation. They need someone to communicate with, who understands bankruptcy and life settlements. We are that firm. We are prepared to work out a resolution with GWG on behalf of the L bond noteholders.

What separates us from other attorneys is; we have a unique understanding of alternative investments. We are able to provide our clients with solutions that others are not.

We have spoken to a number of agents, who while they are not responsible for GWG’s situation, have expressed a willingness to work with us as well.

We are also asked about our experience. Here's some quick facts about me:

  • Joseph Sarachek is an internationally renowned bankruptcy lawyer and restructuring advisor in practice since 1987 (33 years). I have been involved in hundreds of cases, large and small, primarily on behalf of creditors and investors, including In re: Bernard L. Madoff where my clients received all their money back. I have served in every role in the restructuring area: debtor's counsel, board member, Trustee, Creditors' Committee counsel, and investor. I currently teach a course in bankruptcy investing at NYU Stern for MBA students. My website is I am experienced and know how to get you back your money quickly.

  • Recent cases are: Emergent Capital Inc., a life settlements company which filed bankruptcy in 2020 and reinstated its obligations to all of its stakeholders; Future Income Payments where we represent 400 investors with $60MM in aggregate investments. In that case, we have reached agreements with numerous agents and obtained funds for our clients; Woodbridge Group of Companies where we represent 270 investors with $40 MM in aggregate debt and have gotten money back for our clients; 1 Global Capital where we represent 40 investors with $20 million owed and have reached agreements with the largest agents and gotten money back for our clients; Sears Holdings Corp. where we represent over 30 vendors with $ 25 million owed and obtained recovery for our clients ; and Toys 'R Us where we represent vendors as well and obtained recovery for them as well.

If you would like us to represent you, please email me ( or call me at (646) 403-9775.

Have you stopped receiving monthly payments from PetroRock Mineral Holdings?

PetroRock Mineral Holdings, LLC (PetroRock) is a Texas entity formed on March 17, 2014, with a principal place of business in Irving, Texas. PetroRock is responsible for acquiring oil and gas leases. PetroRock is a subsidiary of HomeBound Resources, LLC also a Texas entity.

The Securities and Exchange Commission imposed remedial sanctions and a cease and desist order against Homebound Resources, Thomas J. Powell and Stefan T. Toth

To review order:

It is alleged that:

  • Salespeople acting on behalf of Powell and Toth who controlled Homebound sold more than $350 million of debt and equity securities in unregistered offerings, based on working interests in oil and gas wells, to retail investor.

  • Powell and Toth provided insufficiently supported projections of future oil production, made statements about potential tax benefits that were unavailable to certain investors, overstated cash reserves, and made incomplete disclosures regarding potential uses of investor funds, including the amount of funds that would be used for payments to prior debt and equity investors. Powell and Toth should have known that their statements and omissions were materially misleading.

  • Among the problem offerings were the promissory notes that the Respondents sold relating to a loan to PetroRock. Those notes may have been sold accompanied by misrepresentations as to the output of oil wells.

  • The offering materials may also have inadequately accounted for the ultimate use of investor funds.

  • The offering materials may have included misrepresentations about the tax treatment of the investments.

  • Investor funds may have been used to pay off earlier investors, or to pay off undisclosed related parties in an unrelated equity transaction.

All these facts give investors causes of action to recover.

We are an investor rights’ law firm that fights to get investors back their hard-earned money. For over 30 years the Sarachek Law Firm has been at the forefront of major cases, such as Madoff, Stanford International Bank, and MF Global and has recovered money for thousands of creditors.

We represent several PetroRock investors and are working to assist them in the recovery their investments.

We work on a contingency fee basis. Our clients pay us only if we get recovery for them. No recovery, no fee.

Contact Us Today For Additional Information and Speak to Zachary Mazur

(646) 519-4396

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