Friday, May 22, 2015

Life Partners back in the news

In 2012, we noted that "Life Partners Holdings, Inc. has been cleared of allegations by Texas state securities officials that it did not register life settlement transactions as securities under state law."

So, bullet dodged, right?

Not so fast there, pardner:

"The bankruptcy trustee for Life Partners Holdings Inc. is seeking to control the proceeds of life insurance policies held by its customers after his own investigation revealed a number of new ways he said the company committed fraud."

Yeah, the ol' shock meter seems busted right now.

And my 5 year old prediction seems pretty much confirmed:

"Artificially shortened life-expectancy figures supplied by the company convinced investors that their returns would be greater ... [LP] charged massive undisclosed fees and misrepresented the company’s business practices."

And the list goes on.

Look for this to get even messier, and we'll keep you posted.
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