Call Now For a Free Consultation:
(614) 502-6165

Life Settlement Securities Scam

Life settlements have received a lot of negative attention due to the industry’s high fees and aggressive sales tactics. Now there is another set of potential problems associated with life settlements.A life settlement is a financial transaction in which an older adult sells his or her life insurance policy to an investor at a discount to face value. In the past, people would sell their policies to investors in exchange for a lump sum-payment.There have been a lot of recent concerns over securities that package life settlements and use them to back the sale of notes. The worry of some regulators is that these policies could be overvalued or even falsified.According to The Wall Street Journal, last year, Texas investigators seized approximately $20 million in assets from National Life Settlements LLC of Houston. The company supposedly sold secured notes backed by life-settlement contracts and promised investors up to 10 percent annual interest. The state of Texas considered the investments to be unregistered securities. A court-appointed receiver testified that the company paid new investors with money from earlier ones, instead of investing in life settlements. The principals of National Life Settlements eventually settled the claim without admitting to the charges against them.

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

Share This Story
If you found the information provided by this article useful, consider sharing to your social media channels to help others in their search for reliable resources.
Consult with Our Legal Team
There is never a cost associated with a consultation
Columbus Office

614-224-6000
305 W. Nationwide Blvd
Columbus, OH 43215
Meyer Wilson
New Orleans Office

900 Camp Street 
Suite 337
New Orleans, LA 70130
Los Angeles Office

310-905-8688
2029 Century Park East,
Suite 400N
Los Angeles, CA 90067
Cleveland Office

216-600-1355
4781 Richmond Rd.
Suite 400
Warrensville Heights, OH 44128
Bloomfield Hills Office

248-817-8214
41000 Woodward Ave.,
Suite 350
Bloomfield Hills, MI 48304
Quick Links
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state. Read More
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
Read More
chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram