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 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).
For more on The White Law Group's investigatio into these investments, visit http://www.whitesecuritieslaw.com/2012/02/02/recovery-of-life-settlement-losses/.
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.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.