Life Partners in trouble in CO

[lifesettlementadvisor]

Life Partners, a life settlement investment company, is in real trouble in CO.

The state has determined their investment is a security and that all sales are fraudulent (which is true in my opinion).

The real kicker is that the state is naming each agent that sold a product in CO as a defendant also.

I know some of you are looking into them or sell their product, if you do be careful!

Injunction issued against Life Partners - Denver Business Journal:

 

[STIBROKER]

Life Settlement

 

[motoxxx]

WOW! That would really suck to get caught up in that!

I wonder if they are owned by Blackstone too?

 

[somarco]

Going after agents on questionable "investment" products, particularly those deemed unregistered securities, is not new. They will contact any agent who is listed in their database in an effort to round up all the usual suspects.

A few years ago a payphone company based in GA was raided by the SEC and FBI. When they were building their empire (before cellphones became the norm) I attended some meetings and even visited their home office.

All in all the operation was quite impressive.

I knew some folks on the inside and even went so far as to fill out paper work to become a rep. Never sold any of their product, but I did refer a few other agents to them. Some of them sold the "investment" and the company paid me an override.

I think I earned all of $300.

That was enough to generate a call from the FBI asking for all files, sales material, correspondence, etc. that I had about the company.

I told them I had nothing, had thrown it all out years before. They asked for a letter attesting to that statement.

That was the last I heard from them.

Footnote: The company was closed, the owner (a neighbor) lost everything and (I believe) went to jail. I knew some guys who sold quite a few phones. One fellow made close to $1M over a 3 yr period.

I have no idea what happened to him but you know the FBI is looking for him.

Some folks lost most of their retirement savings. Another neighbor, retired from Playtex, lost over $500k. Others lost $50 - $150k.

Bad scene.

You have to be careful in selling non-conforming "investments". This is especially true if selling to the elderly.

 

[lifesettlementadvisor]

that is quite a story.

life partners isn't that crooked, they are just lazy. if they took the time, they could make the product a security, other groups have, life partners just doesnt want to loose the majority of their agents due to licensing issues.

the real crazy thing is that life partners is a public company (lphi) and their stock is not taking a hit from all this.

 

[somarco]

I would think they could have come up with a better name. Life Partners sounds so . . . gay.

Not that there is anything wrong with that of course . . .

 

[ABC]

I was thinking your were talking about Gay peoples partners being able to go onto their group health insurance benefits.

You would think that the people that started this company would have picked a better name.

 

[motoxxx]

You would think that the people that started this company would have picked a better name.

Unless they were gay and trying to make some sort of a statement

 

[Freddie]

that is quite a story.

life partners isn't that crooked, they are just lazy. if they took the time, they could make the product a security, other groups have, life partners just doesnt want to loose the majority of their agents due to licensing issues.

the real crazy thing is that life partners is a public company (lphi) and their stock is not taking a hit from all this.

Based on what I have seen about these type of products - the securities industry SEC/FINRA/state are angry about competition. How dare small investors actually buy a product that will return their money and give them a decent return. I am not shilling for Life Partners. The concept is easy to understand, the policy holder makes money, the investors make money, agents get paid and the insurance companies actually sell MORE insurance.

Are there any other life settlement companies operating in CO? I realize viaticals were garbage. I think if insurance agents sell life stllements products like insurance it should not be a problem. CO's apporach is very heavy handed and sounds political.

The insurance industry is far from perfect but the states have done a better job protecting the public than the SEC with naked shorting and the failure to reinstate the uptick rule plus endless hedge fund abuses that have hurt small investors AND taxpayers. This doesn't even take Bernie into account.

Colorado has become California East. I think LPHI may be getting more scrutiny because they are not libs.

If you want a real crime look at the purchase this week of Indy Mac by Soros, Paulson (not Henry or a relative), Flowers and Michael Dell from FDIC. The first three are big hedge fund managers and Paulson made big money shorting mortgage back secs. My guess is they all shorted Indy. Soros probably made billions with his short gang in October to help his candidate.

Schumer, in October before the election, did a sneak attack in the press on Indy Mac which helped caus the run on the bank. The point is the hedge fund shorts can destroy a financial institution then buy it later with Uncle Sam recapitalizing it. This is criminal. We had major market manipulation in October just before the election.

 

[lifesettlementadvisor]

Based on what I have seen about these type of products - the securities industry SEC/FINRA/state are angry about competition. How dare small investors actually buy a product that will return their money and give them a decent return. I am not shilling for Life Partners. The concept is easy to understand, the policy holder makes money, the investors make money, agents get paid and the insurance companies actually sell MORE insurance.

Are there any other life settlement companies operating in CO? I realize viaticals were garbage. I think if insurance agents sell life stllements products like insurance it should not be a problem. CO's apporach is very heavy handed and sounds political.

The insurance industry is far from perfect but the states have done a better job protecting the public than the SEC with naked shorting and the failure to reinstate the uptick rule plus endless hedge fund abuses that have hurt small investors AND taxpayers. This doesn't even take Bernie into account.

Colorado has become California East. I think LPHI may be getting more scrutiny because they are not libs.

If you want a real crime look at the purchase this week of Indy Mac by Soros, Paulson (not Henry or a relative), Flowers and Michael Dell from FDIC. The first three are big hedge fund managers and Paulson made big money shorting mortgage back secs. My guess is they all shorted Indy. Soros probably made billions with his short gang in October to help his candidate.

Schumer, in October before the election, did a sneak attack in the press on Indy Mac which helped caus the run on the bank. The point is the hedge fund shorts can destroy a financial institution then buy it later with Uncle Sam recapitalizing it. This is criminal. We had major market manipulation in October just before the election.

There are a lot of traditional life settlement companies in CO, but none that offer a product to the "common" investor such as life partners.