Jan. 4, 2012 – The Securities and Exchange Commission said a Texas company called Life Partners Holding has defrauded investors. Life Partners buys life insurance policies from individuals in order to collect when they die.
“Life Partners duped its shareholders by employing an unqualified medical doctor to assign baseless life expectancy estimates,” according to an SEC press release. They say the company also gave false profit reports from 2007 through 2011.
Chairman and CEO Brian Pardo “sold about $11.5 million in Life Parners stock at inflated prices while he knew” these phony certifications were propping up the stock price, David S Hilzenbath reports in the Washington Post.