Apologies for the misprint "Debtors Committee" was intended to be "Creditors Committee". Pretty sure info is in J Belth's Article 83.
Papers filed was "Adhoc Committee of Fractional Insurance Beneficiaries of Life Partners Inc, Statement of opposition as to the motions to appoint a chapter 11 trustee".
Attorney Stephen Kennedy of Dallas
I don't know but do not believe any appointment of any committee has been made. All creditors should be represented, but, you are correct that the fractional policy holders (the parties defrauded by LPHI) are in a unique situation. We should not be dealt with the same as "ordinary" unsecured creditors and are akin to secured creditors in the sense we should have priority over creditors when it comes to the policy proceeds. Then the question is how do we share in the proceeds collected from claims against Pardo, Pardo Trust, Peden, the licensees and escrowees, etc. Shouldn't the fractional owners receive these funds first over, say other creditors like LPHI's attorneys (Baker) and claimants like the SEC until the defrauded fractional owners are made whole? Unfortunately, shareholders investing in LPHI also have claims against these same individuals and will be just as anxious and aggressive to collect Pardo and Peden's assets (and trace funds to friends and family) to satisfy their damages claims.
OK, who was mary54 referring to when referencing the "debtors committee". My understanding is this committee is appointed to act as a fiduciary for smaller creditors in a bankruptcy case; hopefully, in this instance that would mean the fractional policy holders.
Really? Many more than just one. Not all debtors have the same interests. No official committee or representative of any class of creditors / claimants has been established. Hence, the term "ad hoc."
Debtors Committee? Ad Hoc Committee? Are we referring to the same committee?? How many committees does it take to screw in a light bulb?
I assume a list will have to be eventually produced by LPI. Am I right? If so, it should be public and we will finally see who is in these deals. Did Pardo and Peden and Martin invest in their own garbage, or did they know better? Are family members of Texas regulators in these deals? Any judges, like the one who was supposedly on the party boat? Any lawyers from Dunnam & Dunnam? There must be a ton of licensees who bought the Kool Aid...but does that include the Pizza Man, or did he know better?
That list should be public and it will interesting to see who is on it. Did these clowns invest in their own deals? Are there family members of regulators on that list? Lawyers at Dunnam & Dunnam? Yeah, I want to see that list.
A "Thumbs Down" for asking for the name of the attorney representing the Adhoc Committee? Looks like the LPHI shills and insiders are back monitoring the message board. Hi guys! How's business going?
I have not seen. Thanks for the heads up. Very interesting and critically important legal analysis needing to be made. Even with the risks, I'd prefer a trustee suing the snot out of the LPHI, Pardo, Pardo Trust, Peden, other officers, board, licensee salesmen, related parties, escrowees, etc. (to recoup commission received against latter) and than see LPHI or Pardo or Peden have any control or be left with any assets. Most fractional investors would rather lose their entire investment than permit LPHI, Pardo and Peden survive with anything at all.
Adhoc Committee for Fractional Investors filed papers the day before yesterday.
Have you seen those? Expressing concerns on how they wouldn't get due process if Trustee assumed them as assets of LPHI. Not sure the trustee coukd make that leap, but Im sure it was prompted by Collettes doomsday press release. When you read the exhibits/contracts and power of attorney the investors signed and reflecting on what has taken place, it makes one realize how much wasn't addressed in disclosures and contractual language.
If you want a copy, email me at yahoo address.
Are you not a client of Heygood, Orr & Pearson? At this point in time, this firm represents hundreds of fractional investors pursuing fraud claims against LPHI, LPI, Pardo and Peden. Only LPHI is in bankruptcy. The direction is not yet known, but you might not need to go it alone - not yet at least.
I have retained a reputable attorney in San Antonio to research ways to protect interests. If you want to participate, contact me. This name is my Yahoo email address.
I have spoken with two members of the debtors committee. LPHI has not produced a list of investors to the courts. Sounds like plan is to establish a website to keep investors current on developments and investors will be contacted when a list is produced. They are attending court proceedings and have been generous with their time.
Brokers and even providers in Life Settlements will probably go away unscathed. Many have closed their doors and are back driving cabs in NYC. A higher commission isn't a violation, it's someone taking the lazy way to get access to policies. Frankly, K. Carr was inept at performing acquisitions straight from insureds, and LPI was a licensed provider, thus held some perceived credibility. Even though the brokers msy have gotten a higher fee, the issue begins when LPI starts stomping on the policies and manipulating the guts.
Does anyone realize the conflict that was in play while LPI was buying policies for fractionals and at the same time putting policies into the failed and foreclosed on Life Asset Trust? Guess who got the higher quality policies? Guess who paid the lowest fees? Alex Ill take LPI for $1000. BTW LPIs earning dipped during this period of supplying policies to the trust........ SEC, please dig in there some more. What they may find are other players who have been constantly bailing lpi out kn the resales. A hedgie out of Austin comes to mind.
Clawback from all those who touched a retail dollar for sure.
You should differentiate the term "broker". While I agree that those who sold is investment to their clients need to have their funds claw backed, there are also the life settlement brokers who brought the policies to LPHI to buy. As I've stated, many of them were "paid off" in eggregious fees to seek LPHI the policies.
Sentiment: Strong Sell
All who sold this investment for pardo should be wearing orange the brokers only were focused on the commission not the poor investor who had no chance to get what they thought they were signing up for