Life Settlement Firm Targeted For Fraud In TexasArticle Posted by Expert Author: Adam Foley on 04/08/2013
Life Partners, a life-settlement provider accused of fraud is the target of Texas officials, who have requested the authority to seize their assets from a state district court judge. The lawsuit contains information warning that the Life Partners company could run out of money in as few as sixty days.
The Life Partners company, one of many which formed in the early 2000s, hit financial trouble when 2008's economic crisis occurred, leaving it unable to get additional funding. In addition, the SEC reported at the beginning of this year that the actuarial tables crafted by the company were done so by an individual with no formal training in the practice. Because of this, investors have had to lengthen the amount of time they pay premiums, which will cause a delay in payouts.
The company's assets have been frozen, and Life Partners is, as such, no longer able to destroy any records or equipment. However, the company is still reporting the payment of dividends to share holders of approximately $1.8 million despite its high net losses.
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