The SEC is reportedly investigating insurer Life Partners Holding (LPHI), for possibly...

The SEC is reportedly investigating insurer Life Partners Holding (LPHI), for possibly lowballing estimated life expectancies in order to charge investors more for those policies. Unclear what angle the SEC is taking, since a prior court ruling found the firm's life-settlement transactions weren't subject to federal securities laws.

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  • infinityasi
    , contributor
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    I'm not sure on jurisdiction of the SEC either. One concern is that unlicesed sellers of these investment have said the company is has returned in the past Double Digit returns to its investors. The truth is that the returns are the overall company experience with 579 policies(approx number) and 28(approx number) early deaths. This is not typical of what an investor with 5 to 10 policies should expect. Probably more like 3% return with an 8-10 hold is realistic, with clear understanding these are not liquid investments. Will there be a deceptive trade suit? I thought that type of suit would have been brought in a State District Court.
    22 Jan 2011, 12:21 PM Reply Like
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