I'm hoping that his passport was taken away from him however after seeing him in August in France, doubt it. I doubt he could ever survive offshore. Gibraltar will absolutely return any monies wrongfully gained and transferred to them to the US. they are not looking to go afoul of the US banking system. I just learned that his boat is gone. I'm not sure about his plane or home, but in many ways, this is worse than a criminal proceeding. This is long, drawn out, and any person with common sense knows, the criminal proceedings are yet to come. the USDOJ is well known to sit back and wait while the civil proceedings play out. That way they don't have to recreate the "wheel". They get it all presented to then on a "silver platter"!!!!!
I disagree. His "yacht" a small cann cruiser about 50 feet in length, is still registered n his or his families name. I don't think anyone should focus on an asset which diminishes in value as quickly as his boat.
I think investors and creditors should focus on his other assets including real estate, airplanes to lease out and trusts in Gibraltar. While everything else sounds great to attorneys when soliciting clients, people need to focus on the big picture, which really doesn't include a beach house.
Again, just my opinion
Thank you however as a former settlement broker, and reading how badly this company raps both their investors and the sellers of the policies, many doing so for serious economic reasons, I feel horrible. I was in the industry from 1997 until about 2012 and could not wait to get out of it towards the end. Hadn't a fund come in and purchase us, I likely would have simply closed shop. The folks form LPHI, specifically senior management with whom I spoke, were about as sleazy as you could imagine. My only point in many of my posts is that a good trustee, and I know Moran well, would be to turn over as many stones as possible. While he will certainly look at the fat end of the operation, the money raising piece, he should also look closely at the 2-4 life settlement brokers, one of which was owned by a public ally traded nyse firm, to determine if there's any recourse there. As a broker, and fully aware of th fees involved, I know that LPHI would, nearly every time, offer us commissions on a "gross" basis or in excess of 6% of the net death benefit of the policy being sold. He was very enticing, and I'm very sure most of our competitors availed themselves of this, knowing full well that other very viable buyers/providers could offer more money to the seller however less in fees.
This isn't a good example of proper fiduciary responsibility.
Again, I've stated many times on this board my suggestions as to how to address this. I also kn that being out of the market for the last few years, my intimate knowledge has decreased.
Phillyguy, I understand your points and agree 100%. Yes, I was a very substantial settlement broker until a few years ago when I sold my firm and decided it was time to get out of that market. I'm intimately familiar with the aig/.Coventry situation, more than most. My point was that, as a settlement broker, to inform people what we experienced. We decided not to participate in any of these "pay to play" games, but we were intimately familiar with the issues at hand both then, before and now.
I understand however if the life settlement broker accepted a lower offer, or one which provided for more commissions, meaning the net offer to the seller was even lower than other potential buyers, isn't there some culpability? I know because I recall speaking with Pardo who used to tell us that while his offer might be lower than other, more traditional providers, he didn't care how much comp we, the broker, took off of the table. While we never, ever did a deal with this slime bucket, I know many, many of my competitors did.
You determine if this makes sense to pursue.
Many life settlement brokers knew quite well what was going on at LPHI. They knew what Pardo wanted and in many cases, likely sold them files for much higher commissions and lower amounts to the sellers of the policies. They,mthey settlement brokers, when faced with two identical offers, would often go with LPHI who gave them unlimited commissions as opposed to traditional providers who tried to regulate the fees a broker could take. I'm many cases, I'm told and witnessed, settlement brokers would get lower "gross" offers from LPHI but be able to take higher commissions and in many, if not most instances, not deal with the commission disclosures a traditional buyer/provider required.
Don't be so naive and eager to dismiss the settlement brokers. I'm sure they took tens of millions off the table from investors who thought their money was safe.
I think ive said this numerous times in the past however don't think this should be limited to the folks who raised the money. the courts should also go after the life settlement brokers who made hundreds of millions of dollars on fees.
Again, just my opinion
Call me crazy but here's a good one for everyone with a sense of humor, even if it's a very shameful story if true. I was in Nice over the holiday weekend. I was walking into the casino in Cannes and swear I saw Brian Pardo. I went up to him, having met him on numerous occasions, and was completely ignored. I didn't bother wasting my time and wanted gelato more than chasing him, assuming it was Brian. I would have thought a judge would have confiscated his passport but then realized he isn't dealing with criminal charges yet. While I'm not 100% certain this was him, I truly think it was.
I would have loved to see if he walked into the Casino and played. if not, and it was really him, what the hell is he doing in such an expensive place????
Just for #$%$ and giggle", to show how much money was made in fees in this industry, mainly using others people's money, here are the 3 tail numbers for the coventry's principals private airline. This is all totally public information and available on both the DE dept of state web site and on flight aware: Daddy Buerger:n426cf
Son Buerger: 226cf for his challenger and 926cf for the Sikorsky he shares with mommy and daddy.
Again while this has absolutely nothing to do with this particular site, and I apologize for getting off topic, I saw someone raised the issue and wanted to chime in. There are many differences between LPHI and Coventry, the main was how they were funded, but there seems to be a very common issue. While LPHI raised their money now deemed to be illegal, Coventry borrowed it from AIG. AIG gave them over or close to 20 billion to purchase policies and from what is being disclosed, CF nearly 10%, 2 billion in fees. That makes sense given their fleet of cars, planes and homes, totaling well over 150 million based on public information. Now while Pardo stole, all edgedlly, from individual investors, so did Coventry but one step removed. They allegedly used AIG monies, all from investors, to fund their own operation. While AIG is a knowledge firm, they are public, and raise money from investors from every level of society. They also were bailed out from the U.S. government to the tune of billions of dollars, again from US taxpayers. One might make the conclusion that we, all US taxpayers, paid for their planes, homes, limos, gambling(I'm told Reid is a very, very big player in Vegas, to many other things) when AIG was bailed out.
Again I cannot emphasize enough all of my information comes from public sources, or in the case of my gambling statement, from prior Coventry employees.
I don't begrudge anyone for being successful, whether it's Pardo or Buerger. I do however when the gains might be "I'll gotten".
Im no attorney. Just my personal opinions
It gets better. Reid, the son, has his own Sikorsky 76 helicopter to take him the 40 miles from his house in PA to his NJ shore house. He also has a 15 mil challenger 604. His daddy Allan has a 25 million dollar Bombardier 5000.
While I know absolutely nothing about their matter with AIG other than what's public and on PACER, I do know the family well.
You make our own conclusions. They each own 20 mil homes in Nassau, nearly 75 million in planes, and many, many other very nice things. While I don't begrudge hard working folks the spoils,, one has to think maybe AIG has something right????
Coventry is in the retail market under their subsidiary Coventry direct. That's their arm which refers clients to their parent firm.
From what I'm told by some folks in NY closely following their trial, their goose is cooked. Getting their money back from Nassau is a totally different story. Maybe aig will get one of their 3 planes.
why does it seem like a few of the posters are still former principals or friends of LPHI??
I tend to think that Phillyguy has the right idea and approach. There are a few funds still willing to provide bridge financing for this asset class. While it is expensive financing, it will alleviate the need for investors to continue to pay premiums while the court and various litigants and trustee vie for positions. I know this isn't an ideal solution, but given what will invariably be outrageous legal fees for anyone and everyone. It might behoove many people to weigh their legal fees vs the certainty of the cost of financing.
Just a thought
Unfortunately having been t of the industry for the past few years, we didn't store our files unless required to do so for regulatory purposes, I believe a maximum of. 5 years in certain states. I would think the other settlement brokers, most still in business, have the appropriate files and their principals are still working in the industry. It shouldn't be too challenging for a good attorney or trustee to subpoena them or their files on a handful of the larger cases they did with LPI and any competitor bids. I would also think they could speak with the current and former case managers for those brokers.
I understand this is time consuming and likely challenging, and the trustee has many more important issues at hand, and with so many moving parts, prioritaztion is very important, but having seen that side of the business for so many years, I wanted to give this board something else to consider.
Call me carzy and maybe stubborn, and by no means am I trying to insult the intelligence of anyone on this board, including Suva, Antislapp and Phillyguy as well as many others of you, but I am still stuck on how the life settlement brokers could have colluded with Pardo and LPI to sell them polices, as a broker, well under the actual market offers, to secure significantly higher commissions. As a former broker, life settlement broker, and likely one of the largest for many years handling over 1.5 billion in trades, I clearly recall the calls we received from Pardo and his minions on certain larger deals. They would routinely call us, knowing full well their offer was well under other buyers/providers, and offer us fees well in excess of 10% of the DB. They also would tell us they had a way to avoid what was then a statutory requirement for full fee disclosure.
That just felt way too "hinky" for me and we passed on dealing with them but recall speaking to other broker/.competitors who not only told us the exact same stories but laughed about how ten they did this with them.
I know there are many parties who are involved and many very unfortunate people who lost a lot of money. I also know the main focus on on the investment side, but I'm told some of these life settlement brokers are still in business, many with very wealthy principals. Shouldn't creditors be looking to them as well for possible losses due to possible bid rigging resulting in massive overpayments based on fals le's and collusion? I'm not an attorney but was in the business for nearly 15 years and recall how this game was played. What broker, other than us, could turn down a fee of 1 million dollars on a 15 mil deal to not shop the deal and assure it went to LPI? Other than us, and I'm sure a few others, most didn#$%$ not too difficult to narrow down the possible players.
very true. I was introduced to them by Gary C and John B at Viaticus. Worst mistake I ever had!!!!
Sentiment: Strong Sell
Do you mean "provider" and not "broker" re the fine? Based on your moniker, I think you're referring to the provider in the same city as you.
While I agree on most of your points, LPI would routinely call the brokers and ask them to sell them a policy at a lower price while also promising them a much higher, and in may instances undisclosed, commission. That's a breach of the brokers fiduciary responsibility, taking a lower offer in exchange for higher fees and non disclosed which was a requirement in many states.
Suva, why are you ignoring the life settlement brokers , who in many circumstances made close to or in excess of 10% of the DB on single trades? I understand why the agents who sold this #$%$ are easier prey, but there are at least 5 large lif settlement brokers, most still in business, who made millions on fees when dealing with LPHI. I can easilynname them but any market player knows them as well. Why aren't the creditors pursuit no them as well???
Sentiment: Strong Sell
Have your considered their e&O coverag? Many policies are based on the date the fraud might have occurred. Again I'm not an attorney but it my sure many qualified folks on this board understand this issue. Many insurers are concerned with the date the infraction on occurred as opposed to when you filed it.
I completely defer to folks like Suva and others who know much more than i
Sentiment: Strong Sell