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Tag: viatical

Claims Against Viatical Company Dismissed, Claim against Agent Survives In Lawsuit Over Deal Where – 20 Years After $20,000 Investment – Viators Are Still Alive

Claims Against Viatical Company Dismissed, Claim against Agent Survives In Lawsuit Over Deal Where – 20 Years After $20,000 Investment – Viators Are Still Alive

And, as if on cue given the U.S. News & World Report story (here) about how investors run a serious risk if an insured lives longer than expected, a federal court in New York issues a ruling in a lawsuit involving a 1998 viatical investment. “Nearly twenty years later, the viators are still alive, and plaintiff is without any return on his investment,” said the court in Amberger v. Legacy Capital Corp., 17 Civ. 532(NRB), 2017 U.S. Dist. LEXIS 171816…

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New York Times: ‘High-Risk’ Viaticals May Have Contributed to Debt Problems for Virgin Islands

New York Times: ‘High-Risk’ Viaticals May Have Contributed to Debt Problems for Virgin Islands

The pension system for the Virgin Islands has been “chasing high returns by investing in high-risk assets, like a $50 million placement in life viaticals — an insurance play that is, in effect, a bet that a selected group of elderly people will die soon.” That is a line from an article with the headline After Puerto Rico’s Debt Crisis, Worries Shift To Virgin Islands, available here.  

Investment in Viatical Deal Leads to Lawsuit Lifespans Last Longer Than Expected

Investment in Viatical Deal Leads to Lawsuit Lifespans Last Longer Than Expected

A dispute over an investment in viaticals will be litigated in New York, rather than California, a federal court decided last week. And in deciding to transfer the matter to the federal court for the Southern District of New York, the court in Amberger v. Legacy Capital Corp., Case No. 16-cv-05622-JSC, 2017 U.S. Dist. LEXIS 8392 (N.D. Calif. Jan. 20, 2017), also shed some light on what happens when an investment in viaticals goes bad – due to the fact that…

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Federal Court Rejects Claims of Investors Who Declined to Join Settlement Resulting from Viatical Company’s Receivership

Federal Court Rejects Claims of Investors Who Declined to Join Settlement Resulting from Viatical Company’s Receivership

A federal court in Ohio rejected the claims of six investors who declined to join the settlement of claims involving the receivership of a viatical company. Six investors had decided not to join the investors’ settlement. The court described the case as follows: Starting in 1997 and continuing for about six years, 4,000 or so people invested in LifeTime Capital, Inc.  At the time of the investments, LifeTime appeared to be in the legitimate business of selling financial interests in…

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Texas Supreme Court Describes Life Settlements Transactions in Detail

Texas Supreme Court Describes Life Settlements Transactions in Detail

In Life Partners, Inc. v. Arnold, No. 14-0122, 2015 Tex. LEXIS 440 (Tex. May 8, 2015) (described here and here), the Teas Supreme Court held that life settlements agreements are investment contracts, and thus securities, under the Texas Securities Act. The Texas Supreme Court’s opinion includes a detailed description of the background of the cases, as well as of the life settlements business: First, the court described the procedural history: “In Life Partners, Inc. v. Arnold, Michael and Janet Arnold and others1…

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News Report: Long Wait For New York Insurance Department Decision on Viatical Dealings Leaves Lawsuits, Financial Advisor in Limbo

News Report: Long Wait For New York Insurance Department Decision on Viatical Dealings Leaves Lawsuits, Financial Advisor in Limbo

An upstate New York newspaper recently reported on how the long wait for a decision from the state’s insurance department las left a number of viatical-deal lawsuits, and a broker at the center of the disputes, in limbo. The July 9 article, “Lawsuits, Advisor’s Future On The Line,” appeared in the Canandaigua Daily Messenger newspaper, and begins by recounting how it has “has been more than a year and a half since hearings were concluded through the state Department of…

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Reports: 13 Guilty In Secondary Insurance Market Fraud Scheme

Reports: 13 Guilty In Secondary Insurance Market Fraud Scheme

A “massive life insurance investment scheme that defrauded 30,000 investors worldwide” has led to sentencing for 13 defendants, according to recent news reports. One news story, headlined “Broward lawyer gets 10 years in prison for $826 million fraud” describes the sentencing of Florida lawyer Anthony Livoti Jr. for his involvement in the Mutual Benefits Corporation viatical and life settlements scheme.  That story, from the Sun-Sentinel newspaper, is available here.  Another story is from LifeHealthPro.com, and is entitled “13 charged, and,…

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Investing in Viaticals Can Be ‘Risky and, Well, Uncomfortable’

Investing in Viaticals Can Be ‘Risky and, Well, Uncomfortable’

The Virginia-Pilot recently ran in the newspaper’s print edition a question-and-answer article that had been created by The Motley Fool (fool.com), the financial services company that provides investing information and other services. The headline was: “Viatical policies can be lucrative, risky and, well, uncomfortable.”  Some key points: “[T]he sick person might live for many years, significantly reducing the investment’s ultimate return.  A cure or powerful new treatment might even have him outliving the buyer.” “Many people are uneasy about investing…

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Business Journal Adds More Details About Viatical Fraud Scheme

Business Journal Adds More Details About Viatical Fraud Scheme

Here is a news story about the viatical fraud scheme mentioned in this post.  According to the news story (available in full here), which appeared in the South Florida Business Journal, the company that was at the center of the scheme “misrepresented various facts including the estimated life expectancies of the insured persons – particularly AIDS patients who suddenly lived longer lives due to advances in medications.”