We have real live that do not include defrauding others. We act with diligence, integrity, and competence. We act in an ethical manner & encourage others to do so. These are things you are not capable of understanding.
I initially thought the policies were perhaps underfunded, with some of the premium being siphoned off. Now it seems you could be right, with the policies overfunded. OK, let's follow the money.
If true, this brings up various things discuss here before:
1) Isn’t scaring fractional investors into selling and/or forcing them to pay more than necessary an act of fraud?
2) Don’t the trust/escrow companies have a fiduciary duty to the fractional investors? These organizations should have known what the real premium is for each policy, or they should have at least investigated this issue due to their intimate knowledge of the growing number of forced resales.
3) Where were the regulators while all of this was happening? If life settlements cannot be regulated in Texas, why is no Republican there introducing legislation? The pols could not all have been given rides in Pardo’s jet, and not all the regulators had family members who were licensees.
You got it wrong. No insurance or securities licensure is necessary to sell this stuff in Texas. It isn't just the people selling the fractional investments that should be sued or investigated. There should be an investigation to see what family members of insurance regulators sold the fractional investments. There definitely should be an investigation of the two trust organizations Life Partners is using.
I know something about market makers, and they are simply after the spread. Life Partners will continue to trade. Why anyone would want to own it is beyond me, but it will trade.
Goodnight Gorilla, goodnight Giraffe, goodnight suvacrew and suva.crew, goodnight harrythehorse111, goodnight Citron/Stock Lemon, goodnight…
We found this fraud years ago using analysis, and did something about it. Unlike other YAHOO boards, this one had industry experts, hedge fund operators and employees, lawyers, brokers and an analyst or two. Remarkable.
Is that even legal? A grace period on an insurance policy is longer than that. It seems Pardo found another way to take money from the fractional investors. These poor investors don't even have time to find an attorney and get advice about the changes coming from Waco. This just proves the unethical behavior (and possibly illegal) from Pardo and Peden. Now the new CEO, who has a history of not being able to hold a mid-level accounting job, must bear the responsibility of these horrible actions.
I was thinking in terms of proving fraud. The trading of this stock over the years is, shall we say, curious? I am wondering what offshore trading, if any, was done out of the Pardo Family Trust or was traded off of it if used as collateral.
Did any of these guys invest in their own deals? It is beginning to sound as if they did not.
Pooling the policies would make things easier on paper...and it could also hide fraud. A lot will depend upon how knowledgeable the trustee is, and more importantly how hard he wants to work on behalf of the fractionals. His goal, and the goals of the fractionals, may be in conflict.
No, the carriers couldn't care less. Everything from expected lapse rates to policies l=held so long that they could endow are factored into the premium structure. The trustee will do whatever is necessary to keep the policies in-force. Some fractionals, particularly the ones who were screwed, will be screwed more.
This will be an absolute mess, with fractionals claiming they never received premium notices, other saying they paid the platform service change but had the policy taken away, etc.
Suvacrew brings this up every now and again. What was the end game? Was it to sell the company using the bogus LEs as a way to inflate the price? I am not so sure. A lot of schemes have no end game, with the promoters just wanting to bask in the limelight of being a big shot with jets, fancy cars and boats. I believe Pardo figured out that most of the suckers would break even, and that he could stay out of jail and live high on the hog forever using the "LE minus 50%" formula. What tripped him up was the revaluations that occurred with most LE providers in 2008. These reputable providers were at least 25% off, meaning the bogus Cassidy LE was a lot more that 50% off. This could be what sunk the company. Well, greed killed the company but the scheme could have lasted a lot longer if the LEs were only 50% off.
The trustee has a duty to investigate the financial affairs of the company. He could try to collect money that he believes belongs to the company. How far this goes is unknown.
Here is part of the code:
a) The trustee shall—
(1) collect and reduce to money the property of the estate for which such trustee serves, and close such estate as expeditiously as is compatible with the best interests of parties in interest;
(2) be accountable for all property received;
(3) ensure that the debtor shall perform his intention as specified in section 521 (a)(2)(B) of this title;
(4) investigate the financial affairs of the debtor;
(5) if a purpose would be served, examine proofs of claims and object to the allowance of any claim that is improper;
(6) if advisable, oppose the discharge of the debtor;
(7) unless the court orders otherwise, furnish such information concerning the estate and the estate’s administration as is requested by a party in interest;
(8) if the business of the debtor is authorized to be operated, file with the court, with the United States trustee, and with any governmental unit charged with responsibility for collection or determination of any tax arising out of such operation, periodic reports and summaries of the operation of such business, including a statement of receipts and disbursements, and such other information as the United States trustee or the court requires;
(9) make a final report and file a final account of the administration of the estate with the court and with the United States trustee;
(10) if with respect to the debtor there is a claim for a domestic support obligation, provide the applicable notice specified in subsection (c);
(11) if, at the time of the commencement of the case, the debtor (or any entity designated by the debtor) served as the administrator (as defined in section 3 of the Employee Retirement Income Security Act of 1974) of an employee benefit plan, continue to perform the obligations required of the administrator; and
(12) use all reasonable and best efforts to transfer patients from a health care business that is in the process of being closed to an appropriate health care business that—
Since the entire industry wants nothing to do with Pardo (Ever attend a LISA conference?), I seriously doubt there is a "White Knight" left that want to be even remotely attached to this scheme.
Try reading the past 5 or 6 years of postings. YAHOO still showed this with having something like a $20 price target up until last week.
Whoever is appointed to oversee this mess has to audit how much of the premium charged the fractional investors actually made it to the carrier. Someone must eventually determine: 1) Was the carrier paid the correct premium?; 2) Was the premium calculated using appropriate assumptions?; 3) Was the premium not optimized in most policies as an effort to hide an artificially short LE?:and 3) Did the money the fractional investors pay all go to the carrier, or was there fraud?
This was mentioned before: New line items on the financials of LPHI usually portend something very wrong. We just saw a new foreign trading loss item that makes no sense (yet). I wonder if this foreign loss had anything to do with premium payments? Probably not, but you never know because this company is the perfect example of the Cockroach Theory, which states, "If you find one there are more hidden elsewhere." Life Partners is infested, so reconciling the books from the two trust companies with the billing of the fractional investors and the payments to the carriers is mandatory.
The shorts were long gone making Pardo's suit against naked shorts a joke, the index funds likely sold it all off after the Chapter 11 filing, and the only people wanting the share to rise are the Pardos and ________. I think just about all the stock has been in friendly hands for a long time, probably by those who were hoping for a short squeeze that never came or just people who believe the story. What does the Pasadena Pumper have to say? Is he still touting the stock? I haven't heard anything for some time.