PES (Purchase Escrow Services) and ATLES (Advanced Trust) filed responses expressing their concerns about any disruption of LPI could impact their ability to service fractional policies. I read it as more self serving (to help their buddy Pardo out) than anything as Im sure a properly equipped Trustee or Receiver with knowledgeable advisors could sort out premium needs in quick order. LPHI wants a hand picked examiner and consultant to "help" them through a rough spot. Unfortunately, with no going concern, besides a rev stream built now on foreclosing and resales, its a no brainer for me...assign a Trustee from the pool. These escrow companies need to prep with some mitigation work IMHO and look at payments history and projections of when accounts are exhausted of reserves and flag them now in prep for a transition.
BUT in the body of these filings tells a clear horror story. ATLES has ONLY 69mil in premium reserves to service $1.8billion in face, paying out in premium, $6.9 mil a month.
PES is stuffed with the Viaticals and early LS and is equally distressed $6.7 mil in escrow on $680mil in face.
Paying $500k a month in premiums.
Anyone see that this is the train wreck and the foreclosures will be coming in rapid waves?
I hope investor lawyers and the SEC is seeing this as the point to make a stand to protect fractional holders, this is where LPHI/LPI performs the last pillaging. They will probably put forth some financial backing to either bridge this premium gap somehow, but that's nothing a Trustee/Receiver cant coordinate without the adverse motives to the investors.
This is set to erupt like Krakatoa, which by the way is actually West of Java as opposed to the movie title.
Stirfried, your returns need to be moderated by the two that linger. But 2 maturities within LE is truly against the odds given the hack job that was done.
That CCH you reference was made up, it is chock full of nuts that lPI packed in there.
I see your question and antislapps response.
Anti is correct in that you've probably never been told the real number and asking the current regime will only get you blocked and tackled. Very soon you should know if a proper trustee is assigned in Bankruptcy court and a process will be set up for these aspects like premium needs etc to be verified.
If you're in Tx, I suggest you make your concerns known to SEC DFW and Tx AG/TSSB. Also contact your Tx representative to draft legislation on this asset class in Tx.
There are probably thousands of investors with the same questions you have, that deserve a proper answer.
The policies are held in such a way you can't drill in to find out.
There's a hearing on Feb 9th regarding the appointment of a bankruptcy trustee. Im sure there are probably fractional investors just hankering to testify. Maybe you should get ahold of the SEC attorneys out of DFW office and get on the list. You all deserve to have your voices heard.
Dopers and dopes get busted!! Doesn't matter if you're a smart or stupid one..
Crossing the line to make money, doesn't make anyone a hero. Using false patriotic fervor, and anti govt/regulator positioning only gains a cult following who are equally looney. Once that's in place and you've made money via purposely asymmetrical information, the foundation for group think is set. A room full of yes men no longer smells the smoke, and the house is on fire so let the motherfvcker burn.
Heck, this page may not be the only aspect getting sanitized. I await reports of fractional returns printed with a dot matrix printer.
Fractionals (partials) investors need protection. There are several lawsuits regarding LEs, premium optimization and other related aspects against LPHI. There was a hearing this past Monday regarding Bankruptcy, outcome unknown.
LPHI engaged an attorney who is in Tx Legislature and that gave the the ability to delay the trials set for early
Feb, until after legislature goes into recess after June!!
I suggest a call to your state regulators and Attorney General. I would think that a receivership would be the best option to protect the fractional investors. Not sure where you sit at the table in a bankruptcy, certainly not as a creditor.
Imho there's some serious dirt to be found behind the green curtain when an audit gets done on accounts.
Do you keep paying premium? You need to get advised, as if you stop and others on your policy do too, the default and lapse risk for all remaining participants goes through the roof.
LEs were only part of the problem........the premiums didn't seem to have much relationship with reality either
Leonardo I suggest you get on with your degree from the University of Google in trading dynamics. This is the greater fool theory at work. It's trading on penny swings, by people paying less than $7 a trade.
There's no one in this stock for a dividend or hold. An overnight hold would be a dumb move.
But hey, you can buy more now than at $27 a share, kind of like gasoline at the pump.......fill up.
Search "continued listing requirements for Nasdaq" it doesn't look good for the cult to hang out on a real exchange. I wonder who would step up to be a market maker on OTC to keep the dream.....ah..nightmare alive?
Pardo batting 1000 on delisting of public company too? A.S.K. and LPHI? This isn't a coincidence people.
Im not sure but didn't Pardo pilot a gunship that may have shot women and children during a police action and convinced himself he was a hero? If I remember a line from a movie, you just don't lead them as much when they run.
Not much, they've lied to everyone for over a decade, sued any and all naysayers, both thought they could remain in control of their destiny and thumbed their noses at regulators. Both called in political favours, used high powered attorneys and had private jets.......
Lance gets a Qui Tam lawsuit and a ban for life. He was a doper.
Pardo.....well its just starting for him. He's just a dope.
The exhibits to pull from the public domain are mind boggling.
Remember the yield letters from Peden explaining what the returns are.......only on matured cases.
For the book on how to lie with statistics, these boys wrote a new insert.
Anyone know how the latest hearings have gone? Does Pardo get to have a handpicked puppet in Ch 11 or does the SEC get a receiver. Money going fast. Lawsuits surely just getting queued up by the truck load by fractional investors who want their day in court.
You win them all of the time....but you can lose them all of the time.
Remember on public company bankruptcy, Pardo bats a 1000.
4 months without a Form 8K filing with all that has occurred?
Suspension of dividend only mentioned in 10Q, not when they hage historically announced qrtrly dividends in early Dec for a decade.
Judgements with dire implications aren't announced but threaded into a 10Q that covers a different (earlier) time frame.
$257k in an offshore trading account evaporates in August? But alas, the only mention is in 10Q....
Lead LPHI counsel regp SEC has withdrawn, owed over $1mil in fees...
Anyone see a pattern?
We've seen 8Ks for announcement of LPHI plus P &P being "exonerated", when in fact they weren't, we've seen early releases of earnings projections when things were easily puffed, Letters from the CEO announcing that the WSJ was all wrong when it wasn't......and how could we forget all of the meaningless "awards" bestowed upon and touted by the Waco crew.
This exhange has been gamed by a game player and so have the stockholders and all of the institutional holders........the bounce is probably over. In 5 months when Tx Sup court rules these fractionals are securities, its lights out.
Pardo batting 1000.
The early maturities is the heroin that keeps people hooked, but when LEs are skewed, you end up with a tail filled with premium calls and you are forced to chase the yield over the cliff. You need the discipline to keep early monies dry for the prem calls.
7% would be a good exit given this gamed event, but I suspect with LEs that were 50% shorter than market with an AtoE that would give a failing grade, that may be a rosey expectation.
In their press release they say there has been $200mil in maturities since 2001........that's actually a very poor performance given the amount of LS sold and LEs issued. Good luck
Ch11 is for LPHI, the holding company. The operating co is LPI, and the class actions I believe named both entities and the expected cast of characters. They roll on, but are delayed until May?
Bingo, Im touching my nose!! Investors really had no idea what they were funding premium reserve-wise. The premiums shown had no relation to what was necessary to properly fund premiums to keep the policy inforce. They were never shown CSV, Accumulated Values, int rates etc, so there was no means to dissect and reverse engineer the real COIs. Imagine the other items you could plow in and bake.
IMHO even the most dialed attorneys awaiting to out a fork in this, arent up to speed knmall of these nuances that just make the escrow accounts explode with over funded garbage. If you watched the Tx Sup Ct oral, arguements, it was clear those attorneys hadn't done their homework.
Not sure it was even that. Milliman estimates high anyhow as a hedge on error and mortality curve. What I saw in CCH form was basically a true cost maturity PLUS game. There was a policy we owned as we had written it years earlier. There were two identical policies, we saw their CCH for their offering vs the twon case illustrations we had using both Datalife and Milliman.....the difference annually was staggering. Compounded by LE, then we knew the game was on and started telling everyone we could. K. CARR was their key puncher for this I think.
Ill say this, not one investor ever saw an inforce illustration that was generated and issued by the insurance company. No one saw account values, surrender charges,interest assumptions, guaranteed and non guaranteed premiums, you were presented a CCH with a premium schedule developed by LPI, and I doubt there is much of a relationship apart from LPIs being much higher than needed to fund the policy. They were in my opinion as "doctored" as a Cassidy LE.
Drill in and ask for illustrations related to your fractional it'll be interesting.