This is good news for investors who invested however, like most fraud cases the investors will most likely still lose a portion or all of their investment.
A judge approved the first step Monday in potentially paying back Texans who invested with a Houston company that is accused of scamming retired teachers, state workers and others.
With state District Judge Stephen Yelenosky’s green light, state officials will start a claims process by which alleged victims of National Life Settlements, LLC, can report how much they invested in the company. Authorities charge that the company was selling unregistered securities.
National Life Settlements allegedly solicited money from investors, who received promissory notes guaranteeing them a fixed rate of return, according to the Texas State Securities Board. NLS allegedly secured the promissory notes with life-settlement.
The company promised guaranteed returns of up to 10 percent a year for five years with little or no risk, according to the securities board.
But state investigators did not find in bank records any evidence that the company actually purchased any policies, said Texas Securities Commissioner Denise Voigt Crawford.
National Life Settlements’ assets were seized earlier this year and a receiver is now overseeing millions of dollars in assets held by the company. Of about $27 million that was invested with the company, about $20 million was recovered, according to the court appointed receiver, Houston attorney Janet Mortenson. She estimated about 300 Texans invested with the company, starting in 2006.
Should the company ultimately be found guilty, a judge could order the seized money to be returned to investors. Still, Mortenson said she doesn’t expect those investors to see all of their money returned.
A trial date has been set for Oct. 26.
Source: Stateman.com
