Lifemark investors could be forced to rely on the Financial Services Compensation Scheme (FSCS) to bail them out as talks between the troubled life settlement vehicle and CarVal Investors collapse.
US hedge fund CarVal has walked away from a £40 million restructuring deal which would have seen 25,000 Lifemark investors repaid over a 14-year-period, according to sources close to the negotiations.
The options for Lifemark and the prospects for its investors, who put £350 million into the Luxembourg-based vehicle via Keydata, founded by Stewart Ford, have now narrowed.
Lifemark needs to secure funding through a restructuring deal or sell the life settlement policies it holds in order to bridge its severe liquidity problems.
We will continue to monitor and post updates…
Source: Citywire.co.uk – Read full article
Posted in: Life Settlement.
Florida Insurance Agent Arrest
A Florida insurance agent was arrested on numerous counts of alleged fraud and grand theft in connection with a stranger-originated life insurance (STOLI) scheme involving $78 million in death benefits, according to the Florida Department of Financial Services.
Steven Brasner of Infinity Financial Group in Boynton Beach, Fla., was arrested at his office and booked into Palm Beach County Jail, according to the Financial Services department. He was arrested after an investigation by the Florida Division of Insurance Fraud and the State Attorney’s Office in Palm Beach County, Fla., the Financial Services agency said.
He allegedly submitted insurance applications to AXA Equitable Life Insurance Co. with false information on prospective insureds’ net worth and arranged for the policies to be sold on the secondary market in a STOLI scam.
A probable cause affidavit alleged that Brasner sought insurance for five seniors and said that the policies were not intended to be sold. It also alleged he earned $1.6 million in commissions on the $78 million worth of policies.
In addition to the AXA policies, the affidavit alleges that Brasner obtained another $6.5 million policy for an elderly woman with Transamerica Occidental Life Insurance Co., now known as Transamerica Life Insurance Co.
Brasner allegedly promised to pay the insureds 3% to 5% of the face value of the policies when they were sold after the two-year contestability period.
In the same case, AXA previously sued Brasner and others in June 2008 for alleged fraud in U.S. District Court for the Southern District of Florida.
Source: Press
Posted in: Life Settlement.
