If true, the tradition of LPI double dipping continues (lol)! The good news is that Moran seems to have zero trust in anyone affiliated with Life Partners, and this news indicates that Advance Trust & Life Escrow Services is not trusted. It seems he is trying very hard to prove the fraud, and keeping things "in house" will make it easier to do so. We all assumed some fraud was there for the past 5 or 6 years, but nothing was ever proven regarding the escrow companies that, at best, acted in an unethical manner since they were in a position to know what was going on. Perhaps they were also involved in the fraud? Time will tell...
At some point I suspect he will go after the BOD and management. But where is the DOJ? FIFA is a nice fish to fry, put it shouldn't be hard for the DOJ to put a fork a "tad" into the board and management.
I was taking this from the perspective of a four-year LE, where the amount paid for a typical UL could be greater than 25% of face. Of course, we now know those four-year LEs were closer to 8-12 or even greater.
There is no way to tell for sure, since there were so many levels of people being paid and each master licensee cut their own deals with the licensees (your "broker"). The master licensee had to pay for their planes and boats, and it trickled down from there to the lowly licensee. My guess is 15 percent or so, but others here would have a better idea. What is shocking is the allegations of the Chapter 11 co-trustee that is some instances the total commissions (this includes Life Partners take) exceeded the value of the policy. When the fees and commissions are over 100 percent, it is hard for the investor to make money.
Forget about the titles not being transferred. Moran found the following:
43. The fraud, which took place over the course of a number of years, occurred in a muber of ways, including, but not limited to:
• Use of artificially shortened life expectancies in the sale of its so-called “fractional investments”;
• Material misrepresentation of the returns Investors could expect;
• Misrepresentation regarding whether policies had lapsed and resale of lapsed policies;
• Use of so-called “escrow companies,” including one with the word “trust” in its name, as instrumentalities and cover for the fraudulent scheme;
• Charging massive, undisclosed fees and commissions, the amount of which, in many cases, exceeded the purchase price of the policies themselves;
• Repeated misrepresentations of Life Partner’s business practices in order to maneuver around securities regulatory regimes;
• Egregious and continuous dealing by insiders;
• Failure to disclose (CSV)
Wow, the fees and commissions were greater than the policies. Given the local news, I am surprise the WACO fractional investors didn’t hire a biker gang or two to collect their money (just kidding, of course).
I never saw any figures from Advance Trust or Sterling regarding what was paid to the insurance carriers. I am not doubting this, but this was never disclosed in any of the SEC filings given Life Partners told the trust cos. what to pay the carriers and didn't pay directly. If true, the DOJ needs to be involved ASAP.
So, where are the dividend buyers now?
There is nothing left for Pardo to strip out of the company and extract overseas into the family trust. It was raped and pillaged to the furthest extent possible. Even the Pasadena Pumper can't but a positive spin on the 1999.999% reported Net Dividend Yield.
Are you on drugs? The fractional investments are unregistered securities...they did not flow through a B/D. Besides, the firm you mention is our of business. Now, if you are talking about a broker who was pumping LPHI stock...
They advertised that you could "invest like Warren Buffet" in the "largest companies in the world' years after the 2008 VBT. How could they advertise the same returns after 2008? Where did they purchase their policies? Not from me. Who was the trustee and who was the contact others could call? Why did KCBS radio continue to let these clowns advertise when KCBS was warned (How do I know this?) that this was likely a fraud, and they were instructed how to tell if it was indeed a fraud? This could be bigger than the purported $100 million alleged by the Commission.
Remember Pacific West Capital Group? The Securities and Exchange Commission today charged Los Angeles-based Pacific West Capital Group Inc. and its owner Andrew B. Calhoun IV with fraud in the sale of “life settlement” investments.
Can you say, Ponzi?
Well, there is nothing from the DOJ...yet. It may never come. But if fractional investments are securities, and if the ruling is retroactive, some angry investors may want to see more than civil justice (which may never make them whole). The licensees selling this garbage should Google the "Rico mambo 2" or "Rico Mambo Prison" for some fun. I'm told the "P" and "P" on the jumpsuits don't stand for Pardo and Penden. Regardless, it is something to watch while pondering what will happen to those people selling unregistered securities. Selling unregistered securities is a crime, isn't it?
That amicus brief was an example of hypocrisy, pure and simple. Penden wrote how Life Partners did not engage in "post transaction entrepreneurial effort." Yeah, right.
It is time to look up the "RICO MAMBO" on YouTube. The only version worth viewing is the prison version, with hundreds of people in jumpsuits dancing in unison. The best part is the initials on their suits, "P" and "P." Pardo and Penden, as well as the fat pizza man, may someday find out that orange is the new blue (as in the color of their suits).
He operated like the Church of Scientology, didn't he? Here are the reasons why:
1) He tried every means possible to squash those criticizing the company. This included lawsuits, using private detectives to tail people, etc.
2) He spent the faithful's money as if it were his own on jets, boats and every luxury item imaginable.
3) He kept coming out with new schemes to get more and more money from the faithful.
4) Then there is the wife issue(s). Shelly Miscavige is missing. Pardo's wife? Well, how many does he have?
5) To give credibility, he surrounded himself with celebrities just like Miscavige does.
6) He banishes anyone who is not faithful to his scheme.
suva.crew is right...he is Col. Kurtz. personified. Pardo should be cast to play the role if there is a remake of the movie. I doubt that will happen, since Coppola has enough money to keep making his wine north of Nappa.
Somehow, I don't believe Pardo this time. He has as much credibility as the Iranians when if comes to verifiable facts and figures. It must be tough when men in cheap suits take away the Mercedes, planes and other personal items.
What happen to Pardo and Peden reminds me of the old Wall Street adage: What goes around, comes around. I wonder how many people these clowns tried to smear are now smiling?
Hey, anyone know of a yacht I can use to entertain a district court judge?
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.