Life Settlement Fraud

The Texas State Securities Board in May 2010 obtained a court order shutting down Retirement Value. Regulators alleged the firm committed fraud by selling unregistered securities to investors.

Retirement Value CEO Richard “Dick” Gray, who authorities said repeatedly engaged in illegal sales of securities, has reached a tentative agreement to pay $650,000 in cash and property to settle claims.

The court-appointed receiver for Retirement Value LLC is recommending that a Travis County judge approve $7.7 million in payments to the “investor-victims.”

In the case of Retirement Value, regulators alleged a New Braunfels law firm served as the beneficiary of the purchased life insurance policies, while investors were “co-beneficiaries.” Investors were supposed to receive a pro-rata share of the death benefits when the insured die.

Investors were told they could expect to earn 16.5 percent annually upon maturity of the investments.

Retriement Value Life Settlements

Read more:

http://www.mysanantonio.com/business/article/Payments-possible-in-life-settlement-case-1377276.php

Life Settlement Class Action

Dallas Law Firm Heygood, Orr & Pearson Files Life Settlement Class-Action Lawsuit Against Life Partners Holdings, Inc.’s Life Partners Inc.

Dallas Law Firm Heygood, Orr & Pearson announced that they have filed a class-action lawsuit in Ellis County on behalf of Texas investors who say Waco-based Life Partners Inc. charged excessive premiums on the company’s so-called “life settlement” policies.

This is the second lawsuit Heygood, Orr & Pearson has filed against Life Partners in the past month. The first was a nationwide class action filed in Dallas County, which includes allegations that Life Partners wrongfully withheld thousands of dollars investors paid in escrowed premiums.

Life Partners, a subsidiary of the publicly traded Life Partners Holdings Inc. purchases life insurance policies from policyholders for the purpose of selling interests in those policies to groups of investors.

Source: Reuters