“While those investors had to wait to find out whether they would receive any return on their investments, LPI generated a ‘profit’ of over 200 percent,” Moran said.
Moran seeks court approval to use funds in the bankruptcy estate to make premium payments on life-insurance policies to ensure they remain in effect. Two units, which also act as escrow agents to the death benefits, hold a combined $58 million in reserves for premium payments, according to court papers.
The move to control policy proceeds would affect 3,600 life-insurance policies with an aggregate face value over $2.4 billion that the Waco, Texas-based company held as of its bankruptcy filing.
The case is In re Life Partners Holdings Inc., 15-40289, U.S. Bankruptcy Court, Northern District of Texas (Fort Worth).
Death-Bond Fraud Was Wide Ranging, Alleges Trustee
May 22, 2015
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