The Securities and Exchange Commission has filed suit accusing Life Partners Holdings of "systematically and materially" misleading investors about the life expectancy of people whose life insurance policies it traded. According to the SEC’s suit filed in federal court in Waco, the alleged scheme inflated the value of the company’s stock. Specifically, the SEC has alleged that "the deception mislead shareholders into thinking the company’s revenue model was sutainable when in fact it was illusory."
The SEC is seeking to recover unspecified civil penalites, as well as, the return of stock trade profits and bonuses.
The company and the executives deny the SEC’s allegations.
