Life Settlement Fraud

I was reading over some news articles this morning regarding the bankruptcy of SemGroup and hedge fund Ritchie Capital Management owned a 25.2% stake in SemGroup. The article also related to Ritchie’s struggles in the Life Settlement Industry.

Ritchie has been a slow motion tank farm fire (formerly train-wreck) for about three years now, in a process featuring an endless stream of excuses for not returning investors’ funds, punctuated by restructuring plans of dubious efficacy, some abandoned along the way, a bankruptcy filing by two funds that lost an alleged $700 million in life settlement assets after partner Coventry First LLC was sued by New York State, a $40 million settlement for its involvement in the mutual fund market timing morass…well you get the general idea.

To find more info about the Ritchie and Coventry issues, read:
Coventry motion to dismiss granted
Richie Unit and Coventry Reach Deal
Life Settlement Hedge Fund Auction

Source: SeekingAlpha.com