Articles Posted in Life Settlements

cliff-sign.jpgIn addition to a potential securities fraud investigation by the Securities and Exchange Commssion (SEC), Life Partners Holdings has been overrun with bad news over the past 30 days. Life Partners’ share price dropped significantly when allegations regarding inaccurate life expectancies began circulating in December.

For more bad news, see summary below:

  • May 16, 2011: Life Partners requests a 15-day extension for filing its 2011 Annual Report after receiving a Wells Notice from the SEC on May 9, 2011, regarding potential securities fraud violations. Click here for related blog posting.

ubspic.jpgSteven Kobayashi, a former UBS Financial Services Advisor in Walnut Creek, California, has agreed to serve over 5 years in prison for securities fraud. Kobayashi was charged with forging customer signatures and misappropriating over $5.4 million in client funds. As previously posted in this blog, Kobayashi settled a Securities and Exchange Commission lawsuit back in March 2011 for defrauding investors who invested in Life Settlement Partners LLC. Click here for related blog posting.

The Alcala Law Firm is investigating claims about the sales practices of Lifestyle Design Group International and the firm’s CEO Thomas Quinlin, a self-proclaimed “Renegade Wealth Advisor” who prefers to create his own financial instruments over which he has complete control. Funds created and controlled by Quinlin include: QVEST LLC; QVEST II, LLC; QVEST III, LLC; and QVEST III Master Fund, L.P. In an email to investors dated April 22, 2011, Quinlin acknowledged that the QVEST III Master Fund suffered significant losses in a construction project in Phucket, Thailand. Lifestyle Design Group customers may have also suffered losses in other non-conventional investments, including Retirement Value, LLC and American Pegasus.

On May 13, 2011, Life Partners Holdings, Inc. received a “Wells Notice” from U.S. regulators regarding the accuracy of estimated life expectancies for settlors. Life Partners is also facing several class action lawsuits which accuse the company of misleading investors by underestimating the life expectancies of the insured individuals and selling the policies at inflated prices.

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Thumbnail image for Thumbnail image for sec crest.bin.jpgToday, the Securities and Exchange Commission (SEC) filed securities fraud charges against Steven K. Kobayashi, a financial advisor working in the Walnut Creek, California, office of UBS Financial Services LLC. The SEC’s complaint alleges that Kobayashi raised several million dollars through a fund called “Life Settlement Partners LLC” that invested in life settlement policies. Kobayashi allegedly bilked customers out of $3.3 million dollars in a scheme where he misappropriated customer funds to support an extravagant lifestyle that included expensive automobiles, large gambling debts and prostitutes. Kobayashi agreed to settle the SEC’s charges against him without admitting or denying the allegations.