A life settlement funder/provider (Universal Settlements International, Inc.) is running out of money to pay premiums of settled cases they hold in their portfolio.
He writes in an affidavit filed in court there will be no money to pay premiums on $13 million worth of policies in February, $10.3 million in March and $3.7 million in April.
“The policies will simply lapse, and the purchasers’ life settlement investments relating to the policies will become worthless,” if a solution is not found, he warns.
He blames financial difficulties on the bankruptcy of an Italian bonding company and a misappropriation of funds.
The lawsuits, and complaints have already begun from investors.
Investor Rino Bifolchi filed a lawsuit in September seeking $100 million in general damages on behalf of himself and on behalf of other investors in Universal Settlements.
He claimed he has been owed $91,500 plus interest since February.
Ernst & Young will act as court monitor while the company tries to raise money by suing former owners and selling some of the policies held for Canadian investors. The Ontario Securities Commission had ordered Universal Settlements in 2006 to deal only with existing customers until it registers to sell securities.
Read for news article at: TheStar.com
