Coral Gable, Florida (PRWEB) January 07, 2012
The Securities Law Firm of Tramont Guerra & Nunez, P.A. (TGN) urges investors in Life Partners Holdings, Inc. stock and life settlements to weigh investment recovery options in light of a recent SEC Complaint filed which charges of fraudulent disclosures and accounting reports related to life settlements.
On January 3, 2012, the SEC Complaint was filed in the United States District Court for the Western District of Texas Waco Division against Life Partners Holdings, Inc. and Chairman and CEO, Brian D. Pardo, President and General Counsel, R. Scott Peden and CFO, David Martin. The SEC further charges Life Partners Holdings’ Pardo and Peden with insider trading in shares of the company stock. According to the SEC Complaint, “Life Partners systematically uses life expectancy estimates that the Company knows to be materially short in brokering life settlements. Life Partners engaged in this practice to artificially inflate the Company’s revenues and profit margins.”
The SEC Complaint explains the importance of life expectancy assumptions for Life Partner Holdings profits, “The shorter the LE, the greater the spread between the purchase price and the sales prices. Thus, LEs are not only critically important to investors in life settlement policies, but also to Life Partners and its shareholders.” In light of the SEC Complaint, TGN urges investors who invested in Life Partners Holdings stock and life settlement contracts, recommended by full-service brokerage firms, to consider what recourse is available to recover their investment losses.
According to TGN, many financial advisors recommended investments in Life Partners Holdings stock and life settlements as suitable investments for risk-adverse investors. The Financial Industry Regulatory Authority, (FINRA) is a self regulating organization with sales practice rules and regulations that govern the securities industry’s conduct and safeguard the investing public. According to TGN, full-service brokerage firms are obligated to give, and investors are entitled to rely upon, brokerage firms for competent, suitable investment advice for investments made in customer accounts. The failure to supervise brokers and their unsuitable investment advice, including fraudulent misrepresentations and omission of material facts are all causes of action that may be available to investors in an individual securities arbitration claim filed with FINRA.
The Securities Law Firm of Tramont Guerra & Nunez, PA, is a nationally recognized, Martindale Hubbell “AV” rated securities law firm. To request a confidential consultation from a TGN attorney to determine whether you have a viable individual securities arbitration claim for investment losses that exceed $250,000 from a full service brokerage account, contact us on our website. To speak directly with an attorney, call (800) 578-0137 and ask for David Chacin, Esquire.
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