Posts belonging to Category Life Policies/Viatical Settlements



Deaf Advisor Charged with Defrauding 7,000 Deaf Investors

 

Affinity investment fraud is a big problem in the United States, according to regulators. Fraudsters take advantage of a presumption in the minds of victims that a person with whom you have something in common is trustworthy. That this is not necessarily so was demonstrated once again when deaf investors lost $3.45 million to “one […]

Securities Cops Issue Warnings about Current Investment Scams

 

The association of state securities regulators known as NASAA has released its top 10 investment traps. NASAA finds that scam artists are peddling various get-rich-quick schemes to take advantage of the economic uncertainty. According to NASAA, investments that investors should be particularly wary of include distressed real estate schemes, energy investments, gold and precious metal […]

Wall Street Wagers on Death Benefits

 

Daniel Indiviglio writes that Wall Street is designing a new derivative that would allow purchasers to hedge against longevity risk (or speculate on it) in his article entitled “Death Derivatives: Has Wall Street Finally Gone Too Far?” in the Atlantic.

Life Partners is in the SEC’s Crosshairs

 

Life Partners Holdings, Inc. and its two top officers have received a Wells notice from the Securities and Exchange Commission informing them that the SEC staff intends to recommend a civil enforcement action against them for allegedly misrepresenting the life expectancies of insureds whose life insurance policies it sold to retail investors, according to a […]

Financial Exploitation of Senior Citizens Continues to Increase

 

Securities regulators all agree that exploitation of retirees is a significant and growing problem. According to the U.S. Securities and Exchange Commission, 40 million Americans are age 65 or older, and that number will be 89 million in 2050. Seniors make up 15% of the U.S. population but 30% of fraud victims.

SEC Charges Company with Massive Life Settlement Fraud

 

The Securities and Exchange Commission recently charged Provident Capital Indemnity Ltd., its president, and its auditor with conducting a massive life settlement fraud, according to Darla Mercado’s InvestmentNews article, “Backer of life settlement insurers hit with fraud charges.” The SEC’s suit also names Provident Capital’s president, Minor Vargas Calvo, and supposed outside auditor, Jorge L. […]

SEC Investigates Investments in Life Insurance Policies and Viatical Settlements

 

Life Partners Holdings Inc., a Waco, Texas company that has arranged sales of several billion dollars of life-insurance policies to investors, is being dissected by the Securities and Exchange Commission, according to Mark Maremont and Leslie Scism in their Wall Street Journal article, “SEC Probes Company Over Life-Span Data.” The SEC is examining how the […]

Investors in Life Insurance Policies and Viatical Settlements Are Urged to Beware

 

Leslie Scism’s Wall Street Journal article, “Insurers Sued Over Death Bets,” describes how life insurance policies sold to investors, who expect to receive a big payment when the insured dies, have led to lawsuits by insurance companies and investors against each other, as well as by relatives of some of the deceased elderly, alleging that […]