Life Partners exits bankruptcy with plan to repay investors
Life Partners, the Waco-based life settlement company accused of defrauding investors, has emerged from bankuptcy with a plan to repay investors, the company’s bankruptcy trustee announced.
“Within the next two weeks, distributions of more than $100 million collected from matured policies during the bankruptcy proceedings will be distributed to investors,” H. Thomas Moran II, the court-appointed Chapter 11 trustee, said in a news release. “Going forward, we project that investors will receive roughly 90 percent of their invested capital over time as a result of the plan we were able to put in place — depending on the option they elected.”
Life Partners sold investors the right to collect on life insurance policies that the sick and elderly exchanged for upfront payments. In January 2015, the company filed for bankruptcy to avoid a $46 million judgment in a case brought by the Securities and Exchange Commission, which alleged that the company made false and misleading regulatory filings.
Earlier this year, Moran called Life Partners “one of the largest and longest-standing fraud schemes” in Texas history, in an 89-page report. He also sued the company’s former longtime CEO, Brian Pardo, seeking to recover about $41 million in dividends and past compensation.
Read more here: http://www.star-telegram.com/news/business/article120704398.html
