Waco Insurance Company Ordered to Pay Nearly $47M
AUSTIN, Texas (AP) — A Texas-based provider of so-called "life settlements" has been fined nearly $47 million for misleading investors about life insurance policies of terminally ill patients.
The Securities and Exchange Commission alleged Life Partners Holdings Inc. of Waco misrepresented revenues and public information. A federal jury in Austin this year ruled against the company on some financial-related issues. Jurors found no insider trading.
U.S. District Judge James Nowlin on Tuesday ordered penalties against the company, founder and CEO Brian Pardo and company attorney R. Scott Peden.
The company didn't immediately respond to a message for comment Thursday.
With life settlements, policyholders sell their life insurance policies in return for a lump-sum payment. Investors buy the right to collect the death benefits, but must continue paying premiums until the original policyholder dies.
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