In February the state of Texas seized the assets of National Life Settlements for viatical fraud. The press release dated February 13, 2009 stated that a state-appointed receiver had seized more than $20 million from National Life Settlements LLC. The Houston company is accused of having sold fraudulent investments in a ponzi like scheme based on life insurance settlements.
The Texas State Securities Board in an affidavit indicated that about $2.7 million of the amount recouped from the accounts of the company and its directors came from retired teachers and employees of the state of Texas.
In Travis County the State District Court Judge Suzanne Covington appointed a receiver at the behest of the Texas State Securities Board and the Office of Texas Attorney General.
NLS paid out $3 million to investors, but also paid more than $3 million in commissions to insurance agents and others who were not registered to sale securities. The state also accuses NLS gave $2 million or more to company officials Howard Judah and Gregory Jablonski and their families.
Mr. Judah, according to court documents is alleged to be a three-time convicted felon whose latest conviction was in U.S. District Court in New York in 1998 for conspiracy to commit wire fraud. He was sentenced to 32 months in federal prison.
Another activity linked to the errant company is unethical debt collection practices. Reports on the website 800notes, an unlisted phone number identifying service of harassing calls, claim that several calls were made from a phone number owned by National Life Settlements. The caller who identified himself as Mason Storm contacted relatives and employers of debtors. In the calls he threatened various court actions if money, often thousands of dollars, was not sent immediately.
For more information on Viatical Fraud and related headlines try www.betterviaticalsettlement.com/viatical-fraud.html
Friday, March 27, 2009
Thursday, March 19, 2009
Welcome to Life Settlement Post
The Life Settlement Post is a blog tracking the emerging industry of life settlements. I started following the industry a few years back when they were still called viaticals.
My first thoughts were, " This is a good idea. Folks can use this." I mulled over ownership and insurable interest issues for a few moments. At one time I sold insurance. Life and health mostly, but I was licensed for all lines and mutual funds also. I eventually figured out I didn't enjoy sales so I moved on.
My next thoughts were, "There's a lot of room for fraud here." After a little Googling I found that the industry was riddled with fraud and scams. At least that's the way it appeared in the search listings. There was very little real information. Most sites provided a few lines and then asked for contact info. Very frustrating. A good idea gone bad.
Thankfully, legitimate companies moved to correct the problem. Because of the negative associations with the term viactical they started using the name of life settlements. The industry expanded into servicing insured seniors as well as the terminally ill. Leaders in the industry formed LISA, the Life Insurance Settlement Association. States started passing regulations. The industry began to grow. Rapidly.
This blog, Life Settlement Post, is about this developing industry, the struggle between regulators, insurance companies and the settlement companies to develop fair laws to govern it; the consumers, professionals, investors and others who are part of it; and, of course, the scams and frauds which grab the headlines from time to time.
If you have a question concerning viatical or life insurance settlement not covered in the blog please feel free to contact me here.
Please note, I do not buy or sell viatical or life settlements nor am I a financial adviser. I am just someone who finds this topic interesting to follow and write about. Before you make any decision regarding the sale of your Life Insurance policy you should consult with your personal financial adviser.
Resources
BetterViaticalSettlement.com
Life Settlement Articles
My first thoughts were, " This is a good idea. Folks can use this." I mulled over ownership and insurable interest issues for a few moments. At one time I sold insurance. Life and health mostly, but I was licensed for all lines and mutual funds also. I eventually figured out I didn't enjoy sales so I moved on.
My next thoughts were, "There's a lot of room for fraud here." After a little Googling I found that the industry was riddled with fraud and scams. At least that's the way it appeared in the search listings. There was very little real information. Most sites provided a few lines and then asked for contact info. Very frustrating. A good idea gone bad.
Thankfully, legitimate companies moved to correct the problem. Because of the negative associations with the term viactical they started using the name of life settlements. The industry expanded into servicing insured seniors as well as the terminally ill. Leaders in the industry formed LISA, the Life Insurance Settlement Association. States started passing regulations. The industry began to grow. Rapidly.
This blog, Life Settlement Post, is about this developing industry, the struggle between regulators, insurance companies and the settlement companies to develop fair laws to govern it; the consumers, professionals, investors and others who are part of it; and, of course, the scams and frauds which grab the headlines from time to time.
If you have a question concerning viatical or life insurance settlement not covered in the blog please feel free to contact me here.
Please note, I do not buy or sell viatical or life settlements nor am I a financial adviser. I am just someone who finds this topic interesting to follow and write about. Before you make any decision regarding the sale of your Life Insurance policy you should consult with your personal financial adviser.
Resources
BetterViaticalSettlement.com
Life Settlement Articles
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