Life Partners lawsuits against Texas-based ‘life settlements’ provider still ongoing Posted February 27, 2013 by John Chapman
What is the parent company of Life Partners Inc?
Unsourced material may be challenged and removed. Life Partners, Inc. is a life settlement provider headquartered in Waco, Texas. LPI's parent company, Life Partners Holdings, Inc., delisted from the NASDAQ, currently trades on the OTCPK under the ticker LPHI.Q.
Can I Sell my Life insurance policy to a settlement provider?
Whether you need cash for high medical bills, a divorce, or other living expenses, it may be possible to sell your life insurance policy to a life settlement provider. However, without federal regulation, it can be tough to know which companies to work with.
What happened to Life Partners Holdings?
Life Partners Holdings, Inc. announced in March 2014 that an Austin Federal court has ruled that the Securities and Exchange Commission failed to prove any of its fraud claims against Life Partners and its CEO, Brian Pardo, and General Counsel, Scott Peden.
What is a a life settlement?
A life settlement is an alternative investment involving the purchase of an existing life insurance policy at a discount to its face value.
What is the lawsuit against Life Partners?
and its parent company, Life Partners Holdings, are facing a lawsuit filed by the Texas state attorney general alleging that the company misled investors and violated state securities laws.
What is Selma Stone vs Life Partners?
On July 5, 2011, these actions were consolidated into the case styled Selma Stone, et al. v. Life Partners Holdings, Inc., Brian D. Pardo, R. Scott Peden, and David M. Martin, Civil Action No. DR-11-CV-16-AM. The consolidated complaint was filed on August 15, 2011, asserting claims of securities fraud under Section 10 (b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder and for control person liability under Section 20 (a). The plaintiffs seek damages and an award of costs on behalf of a class of shareholders who purchased or otherwise acquired our common stock between May 26, 2006, and June 17, 2011.
When did LPI file a class action lawsuit?
On August 25, 2011, plaintiffs filed their consolidated class action complaint (“ complaint ”), alleging claims of breach of fiduciary duty against Life Partners, Inc. (“ LPI ”), aiding and abetting breach of fiduciary duty against Pardo, Peden and us, breach of contract against LPI, and violation of California Unfair Competition Law by LPI, Pardo and Peden. All of plaintiffs’ claims arise out of the alleged provision of underestimated life expectancies by Dr. Donald Cassidy to LPI and LPI’s use thereof in the facilitation of life settlement transactions in which plaintiffs acquired interests.
When was Vieira vs Life Partners filed?
v. Life Partners, Inc., No. 5:11-CV-01630-PSG. On June 3, 2011, pursuant to agreement of the parties, the Vieira suit was also transferred to the Northern District of Texas, Dallas Division.
When was William and Mary Rice vs Life Partners filed?
On March 7, 2011, a putative class action complaint was filed in the U.S. District Court for the Central District of California, Eastern Division, styled William and Mary Rice, et al. v. Life Partners, Inc. and Life Partners Holdings, Inc., Civil Action No. ECDV 11-00390 VAP (OPx). On May 27, 2011, by agreement of the parties, the Rice case was transferred to the Northern District of Texas, Dallas Division.
When was Life Partners filed 10K?
According to the Form 10-K filed with S.E.C .for the fiscal year ended February 29, 2012 by Life Partners Holdings, Inc., other litigation against the company includes the following:
Who are the defendants in shareholder derivative suits?
Life Partners, its directors, and certain present and former officers have also been named as defendants in a shareholder derivative suits, which are based generally on the same alleged facts as the above-described putative class action suits.
What is the phone number for Life Partner Life Settlement Fund?
If you have concerns regarding your investment in Life Partner Life Settlement Fund I LP and would like to speak with a securities attorney about your options, please call The White Law Group at 888-637-5510.
Why did Life Partners file for bankruptcy?
Life Partners Holdings Inc., the fund’s sponsor, filed for bankruptcy protection last January to avoid a $46 million judgment against it and its chief executive officer.
What is private placement?
Private placements are a means for smaller companies to raise capital through the sale of equity or debt securities without having to register their securities with the SEC.
Who is investigating the liability that FINRA registered brokerage firms may have for improperly selling high-risk private placements?
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly selling high-risk private placements, like Life Partners Life Settlement Fund I LP, to their clients.
What is life settlement?
A life settlement occurs when you sell your existing life insurance policy to a third party for a one-time payment. Life settlements offer an alternative to cashing out your policy—a.k.a. getting the policy’s cash surrender value or cash value. After selling your policy, the buyer pays your premiums and receives the death benefit when you die. You may qualify for a life settlement if you are over 65 years old and have had your policy long enough to meet your state’s minimum. Typically, the death benefit of your policy must be at least $100,000.
What is the number one life insurance settlement provider?
Coventry earned the top spot on our list because of the company’s size and strong reputation. The company pioneered the life settlement industry by creating a secondary market for life insurance over 35 years ago. It’s the country’s biggest life settlement provider by a large margin—accounting for 40% of all transactions in 2020. Coventry was named the number-one life settlement provider in 2020 by The Deal. 2
How to start a life insurance settlement?
You can start the life settlement process by submitting a questionnaire, authorization, insurance carrier illustrations, and your past five years of medical records. The company does complete a background check to prevent fraud. Coventry also offers a retained death benefit, allowing you to keep part of your policy’s payout after you stop paying premiums.
Why do people give up life insurance?
As you get older, your life insurance policy only becomes more costly. It may even become unaffordable, so it's easy to see why so many people give up their policies. A 2019 study from the Society of Actuaries and LIMRA found that 4% of life insurance policies—worth billions of dollars—lapse every single year. 1 But if you need money, there is an alternative you may not have considered: life settlements.
How long does it take to sell Coventry insurance?
The sales process may take up to 30 days. Coventry also offers a retained death benefit, allowing you to keep part of your policy’s payout after you stop paying premiums. To qualify, you must be at least 65 years old or have a serious health condition with a life expectancy of less than 20 years.
How long does it take to get a life settlement from Abacus?
You may also accomplish the same thing by calling their team. The company completes a federal background check with the sales process taking 14 to 21 days.
What is death benefit?
Death benefit. This is the amount paid out to the beneficiary (in this case, the life settlement company) upon the death of the insured.
What is the oldest life insurance company?
Said to be the oldest “life-settlement” provider in the world, publicly traded, 24-year-old Life Partners is part of the secondary market for life insurance. Under its business model, the company bought life policies from sick or old people who no longer wanted or needed them, giving the sellers immediate cash payments.
What did Pardo buy?
Many investors looked past Pardo’s eccentricities, which manifested themselves in the purchase of, among other things, nearly $1 million worth of prehistoric animal relics ( specifically, a woolly rhino, a woolly bison, and the head of a saber-tooth tiger) and replicas of an ancient Egyptian sarcophagus and a pharaoh’s throne. Pardo also came to own four airplanes, one of which Gov. Rick Perry used twice for campaign purposes in his 2012 presidential bid. That, coupled with Pardo’s $50,000 campaign contribution to Perry, raised eyebrows nationally. Two Mercedes-Benz automobiles, two jets, and other assets have since been seized by the federal government as part of the SEC judgment against him.
Life settlement brokers: representing you and your client
If you’ve got a client who’s interested in exploring the possibility of a life settlement, a good first step is to contact a life settlement broker.
Life settlement providers: representing the investors
Just like you and your client have a representative in a broker, life settlement providers represent the investors who purchase life settlements. Providers act as the purchaser in this transaction. Because individual investors rarely, if ever, purchase these policies, providers almost always work with institutional investors.