Click to Call and Quote Them All
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Texas Securities Company Fools Investors In Life Settlement Scheme

Texas Securities Company Fools Investors In Life Settlement Scheme

Monday’s Post 1/16/12 -  A life insurance-settlement company  is facing legal action by the securities and exchange commission after allegations the company fooled investors with bad information and systematically reporting intentional errors in its business and risk-assessment practices. Three company executives for the company are accused of low-balling life expectancy numbers of the clients it purchased life insurance policies from, causing drawn-out extended losses to the company investors who were misled on which life insurance risks to avoid. The SEC concluded the senior executive staff caused intentional financial harm to its investors point out poor risks.  Because the underwriting physician issuing the life expectancy judgments had no prior experience in the field, these underwriters based its death estimates on bad premium calculations. Two of the executives were also accused of insider trading while being aware of the system of overvaluation of the company’s holdings.  The SEC alleges that the illusion of a stable company and revenues created a false sense of security in investors who believed the company was solvent. All the top executives involved in this complicated deception carried on a long and dramatic concealment of the risks facing the firm. This included doctoring financial information with faulty account information, while earning money by their illegal activities through the use of insider stock trading. The information used to  for their trading practices was not available to the stock trading and general public.

-Mike

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602