The attorneys at Eccleston Law are investigating Life Partners Holding, Inc. for their role in raising $2.9 billion in life settlements from at least 27,000 investors. Life Partners Holdings, Inc. is a company that is believed to have sold 6,400 policies since its 1999 founding. Our attorneys are actively seeking to speak with investors who may have suffered losses.
The SEC reportedly alleges that Brian Pardo, Chief Executive Officer of Life Partners Holdings, Inc., Scott Peden, General Counsel of Life Partners Holdings, Inc., and David Martin, Chief Financial Officer of Life Partners Holdings, Inc. closed approximately $2.9 billion in life insurance policy investments compiled from over 6,400 polices purchased by approximately 28,000 investors. Pardo, Peden, and Martin of Life Partners Holdings, Inc. are believed to have falsified life expectancy estimations.
In order to induce investors to invest in the viatical settlements, Pardo, Peden, and Martin of Life Partners Holdings, Inc. allegedly shortened the life expectancy estimations on policies, making the investments appear more lucrative. The shorter the life expectancy of an insured individual, the higher the payout for investors proves to be. From 2002 to 2005 it is believed that 90% of insured individuals outlived Life Partners Holdings, Inc.’s life expectancy estimations.
Furthermore, the SEC alleges that from 2007 to 2011 Life Partners Holdings, Inc. materially misstated net income by recognizing revenues prematurely and understating impairment expense related to its investments in life settlements.
Life settlements prove to be faulty investments in many cases due to the uncertain nature of life expectancy estimates. These estimates are never certain and can easily be falsified. Falsifying life expectancy estimates to be shorter makes the life insurance policies of individuals more attractive to potential investors. As the life expectancy for individuals is lowered, the investment return for investors proves to be higher; this in turn increases the revenue for stockbrokers and investment professionals.
Eccleston Law represents individual and institutional investors nationwide to recover their investment losses caused by unsuitable investment recommendations, breach of fiduciary duty, negligence or other misconduct. We have extensive experience representing investors in arbitration and litigation disputes with securities broker-dealers and investment advisory firms, and have recovered tens of millions of dollars or investors.
If you are an investor that has suffered losses investing in settlements sold by Life Partners Holdings, Inc., please contact Jim Eccleston at the Eccleston Law Offices at 312-330-0000 to discuss your recovery options.
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