Recently in Life Settlements Category

June 17, 2011

More Bad News for Life Partners Holdings

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.
  • May 31, 2011: Life Partners announces that it is experiencing delays in the filing of its Annual Report because of an estimated $10.9 million impairment charge and the need for a reexamination by their independent auditor, Ernst & Young.
  • June 2, 2011: Life Partners chief executive proclaimed that the delay in filing the Annual Report is due to the SEC's interference and their attempt to "unnerve the Auditors."
  • June 3, 2011: Ernst & Young resigns as Life Partners' auditor stating that Life Partners should revise its revenue-recognition policy. Nasdaq notifies Life Partners that it is out of compliance with Nasdaq listing rules due to its failure to file its Annual Report.
  • June 17, 2011: Life Partners' previous auditor, Eide Bailly declares that the audit for 2009 "may have material misstatements related to improper revenue recognition" and could no longer be relied upon.

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June 10, 2011

Former UBS Financial Services Advisor Pleads Guilty to Securities Fraud

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.

May 16, 2011

ALF Investigating Claims Involving Lifestyle Design Group

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.

May 13, 2011

Life Partners Holdings Receives Wells Notice

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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March 3, 2011

SEC Files Securities Fraud Lawsuit Against San Francisco Bay Area Financial Advisor

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.