Filed Under:Life Insurance, Life Planning Strategies

SEC Brings Up Charges on Life Partners Holdings

The SEC announced on Jan. 3 that disclosure and accounting fraud charges will be levied against Life Partners Holdings Inc., (NASDAQ GS: LPHI) a Waco-based, publicly traded life settlement firm that is considered a pioneer in the secondary market.

The SEC also alleges that CEO Brian Pardo, general counsel Scott Paden and CFO David Marten misled shareholders by failing to alert them of an important and essentially detrimental risk that the company was taking. The allegations state that Life Partners Inc., was “systematically and materially underestimating the life expectancy estimates that it used to price transactions.” The three executives are alleged to have then overvalued the assets held on the company’s books in the interest of creating the appearance of a consistent flow of income from the life settlement transactions.

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Nichole Morford

Nichole Morford
Managing Editor

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