February 2, 2012 Comments (0) Blog, Securities Fraud

Recovery of Life Settlement Losses

(Last Updated On: July 17, 2015)

Have you suffered investment losses in a life settlement issued by Life Partners? If so, The White Law Group may be able to help.

The White Law Group is investigating potential securities fraud claims involving broker-dealers’ recommendation that investors purchase risky life settlement investments issued by Life Partners (and other life settlement providers).

life settlement is a financial transaction in which the owner of a life insurance policy sells an unneeded policy to a third party for more than its cash value and less than its face value. Until recently, if a policyowner opted out of a policy by surrendering the policy or allowing it to lapse, the additional value was relinquished back to the issuing life insurance company. In some cases, an insured’s health may have declined since the policy was issued and the policy may be worth considerably more than the surrender value. A life settlement is an alternative to this surrender or lapse of a policy, or when the owner of a life insurance policy no longer needs or wants the policy, the policy is underperforming or can no longer afford to pay the premiums.

Life Partners, one of the providers of life settlements, and a trio of its executives are currently facing fraud charges from the Securities and Exchange Commission for allegedly failing to disclose that they were underestimating the life expectancies of insured policyholders — a major factor in determining the price of a policy and the amount the firm makes from its sales.

Life settlement investments can be extremely risky and are really only appropriate for very sophisticated and institutional investors.   Unfortunately, it appears that certain brokerage firms sold these life settlement investments to retired and/or income seeking investments as a safe, non-correlated investment (i.e. not subject to the movement of the stock market).

To determine whether you may be able to recover investment losses incurred as a result of your purchase of a life settlement investment, please contact The White Law Group at 312-238-9650.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.

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