The Securities and Exchange Commission has accused the life settlements company Life Partners and its executives with fraud in connection with the marketing of their investment product. Life Partners is also facing lawsuits from investors who have alleged that Life Partners fraudulently misrepresented the value of the investments which they were sold.
A life settlement is the sale of an existing life insurance policy by the policyholder (who is typically an ill and/or elderly person) to another party. The policy is sold at a discount to the face amount. The policyholder receives a cash payment while the purchaser takes an ownership interest in the policy. The purchaser…
The Texas federal judge overseeing the U.S. Securities and Exchange Commission lawsuit against Life Partners Holdings Inc. has issued a pair of rulings as the parties prepare for a jury trial. First, U.S. District Judge James Nowlin denied a request from Life Partners to reconsider an earlier ruling by the court determining that life settlements…
The Texas Supreme Court is being asked to hear an appeal in a case that raises the question of whether investments in life settlements should be classified as securities. The life settlement brokerage firm Trinity Settlement Services has filed a petition for review with the Texas Supreme Court following the dismissal of the firm’s lawsuit…
If you have invested in a life settlement, you probably understand the importance of the “incontestability clause” of a life insurance policy. Incontestability clauses were originally designed to apply when an applicant fails to mention something that would have been relevant to how or whether a life insurance policy would have been approved and issued.
It is crucial that individuals who have invested their money in life settlements agreements are aware of the laws regulating these securities. State and federal laws regarding life settlements have been designed to protect investors from fraud and other abuses on the part of the companies that sell these policies.
Life Partners is a financial services company engaged in buying life insurance policies and selling interests in those policies to investors. Such transactions are known as “viatical settlements” or “life settlements.” Life Partners works to locate people who wish to sell their life insurance policies for an amount less than the face value. Viatical and…
The life settlements company Life Partners Holdings, Inc. recently won a ruling involving a lawsuit filed against the company by the Texas state attorney general. However, the ruling is not expected to affect the status of other lawsuits against Life Partners that were filed by individuals who invested with the company.
The Securities and Exchange Commission has filed a lawsuit against Life Partners Holdings and three of its executives over fraudulent accounting practices involving the company’s sale of life settlement policies. Life Partners CEO Brian Pardo, president and general counsel Scott Peden, and chief financial officer David Martin are accused by the SEC of taking part…
The attorney general for the state of Texas has filed a lawsuit against Life Partners Holdings that accuses the company of misleading its investors on how soon life settlement policies purchased from the company would pay off. Attorney General Greg Abbott is seeking a court order to end practices that he alleges violate the Texas…
As we have previously reported, the insurance investment company Life Partners, Inc. and its parent company, Life Partners Holdings, are facing a lawsuit filed by the Texas state attorney general alleging that the company misled investors and violated state securities laws.
The Securities and Exchange Commission today charged Texas-based financial services firm Life Partners Holdings Inc. and three of its senior executives for their involvement in a fraudulent disclosure and accounting scheme involving life settlements. Life Partners is a Nasdaq-traded company that generates virtually all of its revenues from brokering life settlements. Life settlements involve the…