November 7, 2016 Comments (0) Current Investigations, Securities Fraud

Life Partners Life Settlement Fund 1, L.P. Investment losses

(Last Updated On: November 15, 2016)

Have you suffered losses investing in Life Partners Life Settlement Fund 1 LP? If so, The White Law Group may be able to help.

According to SEC records, Life Partners Life Settlement Fund 1 LP was organized as a private placement in August 2009 to raise funds from investors.

Private placements are a means for smaller companies to raise capital through the sale of equity or debt securities without having to register their securities with the SEC. These investments are often riskier and more complicated than traditional investments, and are only suitable for high net worth, sophisticated investors.
Life Partners Holdings Inc., the fund’s sponsor, filed for bankruptcy protection last January to avoid a $46 million judgment against it and its chief executive officer.

Life Partners sold investors the right to collect on life insurance policies that the sick and elderly exchanged for upfront payments. The business ran into trouble after the Securities and Exchange Commission alleged the Waco-based company made false and misleading regulatory filings.

The company finally ended its rocky bankruptcy by putting a Texas-based investment firm in charge of its “life settlement business”. The Chapter 11 plan was approved November 2.

The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly selling high-risk private placements, like Life Partners Life Settlement Fund I LP, to their clients.

Despite the risks of investing in private placements, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.

For more information on the investigation see  Recovery of Life Settlement Losses.

If you have concerns regarding your investment in Life Partner Life Settlement Fund I LP and would like to speak with a securities attorney about your options, please call The White Law Group at 888-637-5510.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit http://www.whitesecuritieslaw.com.