Well on that "note", how do you think that those assigned cash flows on a foreclosed trust come back and haunt the balance sheet?
Paget is part of the farce. They are buying at prices well above market valuations for these tainted foreclosed fractionals ladened with 3rd party risks.
We know some of the same people!!
The ONLY policies that wpuld be considered "clean" are those to be liquidated from the foreclosed trust. They were underwritten to a much different standard than the fractionals, yet it still didnt perform as modeled.
The fractionals in bankruptcy and or receivership will be a mess and I suspect if and when the nails get placed in this company's coffin, the fractionals are pooled and set as a closed end fund in which maturities will be used to fund premium calls and receiver costs. The receiver will pursue disgorgement of commissions from all who gained.
Did you notice one broker accounted for 100% of sales? Where did they all go?
Related 3rd party, Paget Holdings, run by Pardos daughter Deborah Carr. Is allegedly paying the same amount other interested parties would. I mean in the real market, an LPI fractional resale isnt worth much with the associated 3rd party risks, so these valuations are bull.
Is Pardo just pumping monies into LPI via Paget purchases? Follow the money, who is the capital behind Paget?
1 broker was the sole source of 100% of sales......where have they all gone? Are the conspiracy theorists the only ones remaining?
There's a trading platform for this garbage? Tx, SEC, FBI, IRS....time to come a knocking some more.
Classic...even after the judge ruled against the Life Assets Trust in their attempt to get a TRO to stop Portigo AG from liquidating the foreclosed portfolio of life settlements, LPHI still holds it on yhe books at $6.6 mil. WTH?
Read the narrative about Paget Holdings carefully.....then look back at the single life settlement transaction.....Im thinking something is awry there.
I think of that amount, roughly 19% was LPHI? It was very twisted how they represented this trust in their narrative. Then there was a time several years ago they wanted to spin this trust off to stockholders as a special dividend.......it made little sense to do, but may have been an early indicator of bad things were in the making due to the leverage outrunning maturities......who even knows now? They loet big in court, their arguments were flawed and I laughed at the inability to value the assets stance. Judge wasnt swayed.
This trust was pitched as the savior for all that ails this company. There was to be tons of maturities and they could back fill all of the holes and cracks developing in LPHIs business model.
I can only imagine the other parties to this trust are loading up the legal fireworks mortars with some powder.
Life Assets Trust S.A. alleged it was fraudulently induced to borrow money to fund the purchase of life insurance policies which defendant Portigon AG promised to securitize for the parties’ mutual benefit. Life Assets alleged that Portigon, in bad faith and in breach of its fiduciary duties, refused to allow Life Assets to sell enough of the policies to make payments on the loan, forcing it into foreclosure.
Life Assets moved for a preliminary injunction. Portigon opposed arguing it would be a hardship to pay for insurance premiums while enjoined. Portigon further argued that the insurance agreement did not contain a securitization provision nor was there a joint venture.
The court denied issuing a preliminary injunction, holding that Life Assets neglected to demonstrate a likelihood of success on the merits on any of its pleaded claims. It held that Life Assets failed to allege the requisite sharing of losses on its breach of fiduciary duty claim. Further, Life Assets neglected to show the likelihood of success on the merits of its claim for breach of the covenant of good faith and fair dealing as a covenant was not a basis for the court to impose terms inconsistent with the terms of the parties’ contract. It also held the parties’ contract contradicted the fraudulent inducement and promissory estoppel claims. The court further found that Life Assets failed to demonstrate irreparable harm based on its claim that the life insurance policies cannot be valued.
I love the last sentence.......cannot be valued.....yeah right. LPHI and Vida will be eating this onr.
Anyone wonder if this trust is offshore, can it trade this stock actively without reporting? You could really play games then, but maybe they already have been....for years.
Yep, just another game played in Waco. They showed premiums much higher than ever necessary to fund the policy to the investors. In this class actions, the allegation is that the insured is one of the few that died before the Cassidy LE. The investors did not get back their "unused" premiums along with the death benefit. I believe a mindnumbing letter from Peden is sent to investors saying that theybhad prepaid the premiums and LPI was trying to get them refunded from the insurer post maturity!!!! Wacky Waco doing their pilfering whenever they can.
Plenty of questions coming for LPHI in regards to premium optimization and what was actually taking place in escrows. If you ever saw a premium as presented by LPI, it always exceeded the most expensive premium attainable, and that's a maturity premium to age 100.
Legal issues just aren't going their way these days.
Excerpt from Law360 by Benjamin Horney
"A Texas appeals court refused to overturn class certification Monday in a suit alleging Life Partners Inc. breached its contract and fiduciary duty by withholding overpayments made on life settlements when the insured died early, affirming a district court's decision.
Life Partners had appealed to the Fifth District Court of Appeals, seeking reversal of the district court's decision to certify a class that sought relief after the insurer allegedly refused to pay shares owed to those who had invested in a particular life insurance policy known as the Gummelt policy. Life Partners asked the appeals court to overturn the class certification, saying each class member's case should be heard separately.
On Monday, the Fifth District shot down Life Partners' argument, saying that the district court correctly certified the class because determining each case separately — the class comprises nearly 40 members residing in eight different states — would be unnecessary and unfeasible."
Peden had a tendency to shoot heat seeking missiles only to have them chasing the exhaust of the plane the the Waco contingent were all flying in. Their attempts at stomping out potential competitors ended up exposing their own shenanigans. Locked on.....fire!!! What's that alarm going off???...flares..flares..flares.
Any guesses on cash balance in upcoming 10q?
Anyone else wonder how the Life Asset Trust can be valued at anything above $0 given it's in default? Who else is holding that bag? Vida too?
Are resales going to breach the 50% mark on revenues?
Lack of revenue will kill it faster than a lawsuit that's for sure.
You mean the marketpulse poster who puts up totally insane remarks...like the company is worth $5 a share in a buyout? Microcaps attract all kinds of nutters, he's just one of them. Anyone remember when the stock was flying at $40+ a share prior to splits and some nut named RAWNOC was touting $100 plus...only for it to fall to the $20PPS in a few weeks.
This stock is so prone to headline risk it's crazy and it's fate is sealed on the revenue side, then the gavel merely has to fall against them in the myriad of lawsuits and it's lights out.
But hey, Pardo has been busy being an author, hopefully it's better than his ad-lib diatribes.
Books out..." A year in the sun" there is a corny as video on you tube about it. "The Commission"..surely he is a hero in that too. But wait there's more, Pardo is allegedly nearing the publishing of his first Non-fiction called "Junk Yard Dog", about the failed pursuit of LPI by the SEC. I'm sure the fact checkers..if there are any will need to scrounge through that one......or it may end up like "A million little pieces".
LPHI and their licensee network is nothing but a freak show full of conspiracy theory lunatics.
You'll #$%$ yourself, I promise.......it's more make believe in a fairy tale of fiction, wrapped in an engima
Least we not forget when he bragged at a meeting about Perry flying around on his plane during his Presidential bid. Only to have the remarks allegedly recorded and then journalists pounced. Perry had to disclose these flights and then pay the proper costs. Loose lips sink ships, down helicopters, doom presidential candidates and kill companies. Pardo and his execs are paranoid now, and for good reason, all of those who took a dollar working with and for them will turn on them...look at Sundelius.
If Tx succeeds with their fractionals being classified a security, turn out the lights.
45% of sales revenue comes from resales!!! That's reselling the fractionals they took back from investors who were in premium call.
Corp jet reimbursement was highest in recent history. ....over 500k.
But Paget Holdings needs a closer look, at the formation and origins of capital. A related 3rd party that helped soak up some of the red ink.
As I've posted before, this is a zombie company that somehow sees the need to have 54 employees to process 26 policies a year.
I ask this, if fractionals are ruled a security in Tx, does that unravel all of these PPMs that the ASR troop have pumped and pierce their exemptions?
We may have just read their last 10K.
But wait there's more...remember The Trust, which was supposed to be the saving grace for this company. ...the bank has subsequently foreclosed on it....read page 42. lol.
So they got 5.2 mil from selling future cash flows from the trust, 3.5 mil tax credit.......85% of the fractionals they still hold have LEs over 5 yrs....
But things are going so great, salaries increased 304k and bonuses increased 232k.
The legal preceedings and contingencies should give everyone a solid pucker moment.......any one of them sinks the battleship. Tx has that security ruling LPHI is whining about, that one turns out the lights like stat.
Im touched by the limited language they use to describe Life Expectancies and the discussion of probabilistic methodologies. Didn't LPHI use deterministic methodology prior to make their story.
It's called death by dividend!!
This is not indicative of robust earnings, but a spring cleaning of remaining cash.
Since they are under the $75mil market cap, they are no longer an "accelerated" filer. Thusntheybmust file within 90days of the end of their fiscal. Any day now, tick tick tick tick. If there isnt a going concern language Ill be stunned. A freaking zombie company.