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Life Partners Holdings Sued By The Texas State Securities Board

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According to a lawsuit filed by the Texas state securities board, it has sued Life Partners Holdings Inc., for failure to comply with subpoenas issued as part of an investigation.

According to the Wall Street Journal, Life Partners is buyer of unwanted life-insurance policies, which are pieced to retail clients who pay the premiums and collect when the insured dies. The company has arranged about $2.8 billion worth of these transactions.

The lawsuit states that the Texas securities board has been investigating Life Partners since mid-2010. They issued fresh subpoenas in June 2011, seeking records from the company. The board is currently seeking a court order to force Life Partners and officers to comply with the subpoenas.

A letter included with the lawsuit said that a lawyer for Life Partners declined to respond to the subpoenas saying that a prior Texas court ruled that its insurance products weren’t securities, therefore, the company believed the state securities board had no jurisdiction over company activities.

Life Partners is also being investigated by and possibly sued by the Securities and Exchange Commission. In May, Life Partners received a Wells notice from the SEC indicating it planned to recommend civil charges be brought against the company and two top executives regarding controversial life-expectancy estimates in which the company has been accused of providing inaccurately short estimates of how long the insured are likely to live.

breakinglawsuitnews.com disclaimer: This article: Life Partners Holdings Sued By The Texas State Securities Board was posted on Monday, August 1st, 2011 at 8:17 pm at breakinglawsuitnews.com and is filed under Fraud Lawsuits.

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