Life Partners, Inc. is a life completion provider headquartered in Waco, Texas. LPI parent company Life Partners Holdings, Inc., removed from NASDAQ, currently trades on OTCPK under LPHI.Q. This follows companies seeking Chapter 11 bankruptcy protection, resulting from a total of $ 46.9 million fines imposed on the company and its two officers.
Video Life Partners, Inc.
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Life Partners Inc. is the world's oldest survival provider and one of the world's most active companies engaged in the secondary market for life insurance. Life Partners Inc. is the latest asset-class architect, living settlement, which has grown over the past decade to become an industry worth $ 80 billion. By selling the policy, the policyholder receives immediate cash payments to be used as intended.
This was filed for Chapter 11 bankruptcy protection on January 19, 2015.
Since its founding in 1991, Life Partners Inc. has completed more than 150,000 transactions and generated a total business volume of more than $ 3.2 billion in nominal value policies for a worldwide client base of more than 29,000 individuals and high-value institutions relating to the purchase of more than 6,500 policies. Life Partners Inc. using Advance Trust & amp; Lif Escrow, LTA service for settlement transactions. ATLES is overseen and governed by the Texas Department of Banking and is responsible for the custody and distribution of LPI client funds.
Maps Life Partners, Inc.
Senior citizen customers
Through living settlements, the secondary market for life insurance provides more options for policy owners to pursue when they no longer want or need their current life insurance policy. Many seniors who pay premiums on life insurance policies are unable to continue. Premiums have skyrocketed and the need for policy has been reduced. More than 85% will only let their policy expire. Most likely, they do not realize they can sell this policy for four to ten times the cash value in the secondary market. If the elderly give the proceeds from the sale of their life insurance policy to the charity, they can gain huge tax benefits.
Legal and legal action
SEC legal action
In January 2012, the SEC filed a civil suit against Life Partners Holdings and three senior executives for alleged disclosure of fraud and accounting schemes involving settlements. The SEC alleges that the chairman and CEO of Life Partners, president and general counsel, and chief financial officer mislead shareholders by not disclosing significant risks to Life Partners business: the company systematically and materially underestimates the life expectancy estimates used for price transactions.
In 2011, a class action fraud lawsuit filed on behalf of current and previous shareholders, Life Partners Holdings, Inc. The lawsuit alleges that LPHI violates US federal securities laws misleading its investors by issuing fake financial reports and reports. The allegedly misleading statement caused LPHI's share price to increase and then dramatically declined after the discovery of misleading statements made by LPHI, causing LPHI investors to suffer financial losses. On November 22, 2012, the court heard oral arguments from the parties about the motions of the defendants to be dismissed. The court has not issued a decision on a motion to be dismissed. No trial date has been set. The survival of the case may be substantially influenced by the decision of the US Supreme Court in Haliburton v. The Erica P. John Fund The Supreme Court is expected to rule by the end of this summer.
December 2013: Plaintiff rejects lawsuit against Life Partners - class certification is denied
Life Partners Holdings, Inc. announced on 4 December 2013, that the plaintiff has voluntarily rejected the lawsuit filed against the company and its subsidiary Life Partners, Inc. and two company officials. The dismissal of the lawsuit was made after the United States District Court for the Northern District of Texas rejected a motion for class certification in the lawsuit. Life Partners, Inc. is the provider of life settlement and provides the purchasing agent service for the settlement transaction. A life settlement is an alternative investment that involves the purchase of an existing life insurance policy at a discounted price to its face value.
While plaintiffs in the case may appeal the rejection of a class action lawsuit or continue the case as individuals, they have chosen to voluntarily refuse a case against Defendant Life Partners. One of the main allegations was the medical consultant of Life Partners using an unreasonable method to estimate life expectancy. However, these allegations were criticized by the Court as part of a 34 page order that denies certification as a class act:
Evidence only results do not address these factors. Nor can the analysis of after-fact insured mortality, in aggregate, establish that the LPI makes no sense in using Dr. Cassidy when and how it is. The court is very skeptical that the analysis of the results alone may cause a reasonable jury to determine that Dr.'s method. The cassidy was flawed.
CEO of Life Partners Brian Pardo commented, "This is another example of lawyer-driven litigation that damages the entire economy, not to mention the company targeted by the litigation.We are very pleased that the plaintiff decided to leave this and we hope to see another similar case end in the same way. "
The case was styled Sean Turnbow et al. v. Life Partners, Inc. et al., Case No. 3: 11-CV-1030-M, United States District Court for Northern District of Texas, Dallas Division.
March 2014: Life Partner is purged of all fraudulent claims
Life Partners Holdings, Inc. announced in March 2014 that the Austin Federal Court has ruled that the Securities and Exchange Commission failed to prove its fraudulent claims against Life Partners and its CEO, Brian Pardo, and General Counsel, Scott Peden. The decision follows the jury's findings in February that both Life Partners, Mr. Pardo and Mr. Peden commits securities fraud under Rule 10b-5 and that Mr. Pardo and Mr. Peden is not involved in insider trading. In a previous ruling, the jury has found supporting SEC fraudulent claims under Section 17 (a) relating to a company revenue recognition policy. The claim, outlined by government lawyers as the "main character" in the case, was challenged by Mitra Life on the grounds that it was not supported by any evidence.
The United States District Court for the Western District of Texas, the Austin Division agreed with the Living Partners that there was no evidence to support income recognition claims for the time period in question and ordered that assessments be incorporated to support the Life Partner. Pardo and Pak Peden on the subject. As a result of this decision, the Company, Mr. Pardo and Mr. Peden have been completely exempt from allegations of fraud alleged by the SEC. The Court allows the jury's findings against Life Partners regarding bookkeeping, reporting and certification by the CEO of the company's financial statements, none of which involve fraud or intentionally or recklessly misleading shareholders. The case is SEC v. Life Partners Holdings, Inc. et al., Civil Action No. 1-12-C V-33-JRN in the United States District Court for the Western District of Texas, Austin Division.
April 2014: Life Partners sues Charles Schwab subsidiary for counterfeiting
On April 15, 2014, Life Partners Holdings, Inc. filed suit against optionsXpress, Inc., a subsidiary of The Charles Schwab Corporation, the company's chief financial officer, and one of the company's largest customers to publish and sell fake stocks from Life Partners. Stock stock.
The suit, filed in Illinois by California lawyer Gary Aguirre, whose practice focuses on market manipulation, asks the Court for an order that prevents Schwab's subsidiaries from creating and selling Life Partners Holdings shares that are not authorized by the company. The action also asks the Court for protection from securities fraud, deceptive business practices and civil conspiracies arising from the issuance of counterfeit stocks that violate the law.
Under the laws of Illinois, Texas, and every other country, a company has the exclusive right to issue and sell its own shares. The creation and sale of counterfeit shares or "ghosts" by brokers and their customers violates this law.
The lawsuit is based on findings in the administration process by the US Securities and Exchange Commission against optionsXpress and other defendants who concluded that optionsXpress, its chief financial officer, and one of its biggest customers fraud securities by engaging in the sale of hundreds of millions of dollars in fake stocks granted as original shares of 25 public companies, including nearly $ 5.5 million of counterfeit stocks from Life Partners Holdings, Inc.
The Company continues to investigate people and other entities that may have been involved in counterfeiting shares of Life Partners Holdings, Inc.
October 2014: Life Partners Inc. unilaterally impose new fees on investors
On October 15, 2014, Life Partners Inc. unilaterally impose a New Fees on investors without warning, dialogue, or further assistance. Because such investors receive unexpected letters and bills for thousands of dollars. When calling, the customer service representative explained that managing the contract is too expensive for them to proceed without charging excessive new fees. They explained that the monitoring contracts, having websites, and the wake-up call had not yet been built into their cost on the initial contract (lack or error of their business) and that now the investors had to pay these new fees in order for LPI to provide basic business. services. They claim that this service is provided free of charge over the last years.
December 2014: LPHI lost a lawsuit with the SEC. LPHI, Pardo and Peden were ordered to pay a total of $ 46.9 million in penalty
A federal judge ordered Life Partners Holdings Inc. and two top executives to pay $ 46.9 million to mislead investors about the core aspects of its business. The US Securities and Exchange Commission has sued Mitra Life in 2012 and is trying to prove that Life Partners deliberately misled investors for almost four years about the core aspects of the "life-of-life" business and that two top executives were involved in insider trading. US District Court Judge James Nowlin on Tuesday ordered Life Partners to pay $ 15 million in illegal profits and $ 23.7 million in civil penalties. Chief Executive Brian Pardo was ordered to pay a civil penalty of $ 6.2 million, while general counsel and LPHI secretary R. Scott Peden was awarded a $ 2 million civil penalty. Judge Nowlin overturned the jury's findings in March that Life Partners and its executives were responsible for one count of fraud. "In ordering this significant monetary aid, the court acknowledged the evil nature of their violations, noting that the defendant was involved in a 'serious breach' of securities laws, that they 'deprived public investment of the information needed to make a complete information decision on whether to invest at Life Partners, "said Andrew Ceresney, SEC's enforcement director.
December 2016: Life Partners Inc. out of bankruptcy
On December 9, 2016, the Joint Reorganization Plan sponsored by H. Thomas Moran, II Chapter 11 trustee, and the Official Guaranteed Creditors Committee became effective. Mitra Hidup emerged from bankruptcy, reorganized to maximize the recovery of investor funds.
Moran was quoted as saying:
In the next two weeks, the distribution of more than $ 100 million collected from the matured policy during the bankruptcy process will be distributed to investors. Going forward, we project that investors will receive about 90 percent of the capital invested over time as a result of the plan we can apply - depending on the options they choose.
References
External links
- Official website
Source of the article : Wikipedia
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