Imperial Holdings announces resolution of DOJ investigation

theflyonthewall.com

Imperial Holdings and the U.S. Attorney’s Office for the District of New Hampshire have entered into a Non-Prosecution Agreement relating to the USAO’s investigation into the Company’s premium finance business. Under the terms of the NPA, the USAO has agreed not to prosecute Imperial for any crimes related to Imperial’s involvement in the making of misrepresentations on life insurance applications and has agreed not to prosecute Imperial for any potential securities fraud claims related to its premium finance business. As part of the NPA, Imperial acknowledged that, in connection with a portion of its retail operation that began in December 2006 and was discontinued in January 2009, in certain circumstances where Imperial employees were also licensed life insurance agents who wrote the underlying insurance policies, the Company facilitated and/or made misrepresentations regarding premium financing on life insurance applications for elderly individuals and failed to take appropriate precautions to prevent other misrepresentations that may have been made on life insurance applications by employees, prospective insureds and external agents and brokers. The Company has also agreed to pay a penalty of $8M.

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