National Life Settlements: Viatical Fraud

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