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Imperial Holdings Pays $8 Million To Resolve Fraud Probe

|Includes:Emergent Capital, Inc. (EMG)

Imperial Holdings, Inc., (IFT) a financial services company headquartered in Boca Raton, FL, announced this week that they will pay $8 million to resolve federal criminal fraud allegations that it failed to prevent employees from making false statements on applications for life insurance for senior citizens.

Imperial's offices were raided by the FBI in September 2011 and U.S. Justice Department prosecutors alleged that certain employees held seminars to persuade elderly people to take out life insurance policies and made misrepresentations in order to hide the company's role in financing the premiums that unsuspecting purchasers would pay on the policies.

In addition, as a part of the deal with the Justice Department, Jonathan Neuman, Imperial's chief operating officer and president, has resigned from the board and is no longer an employee.

The Securities & Exchange Commission served a subpoena on Imperial recently seeking more information on the premium finance business. That investigation continues.

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Stocks: EMG