Life Partners Must Stop Selling Unregistered Securities

An Austin judge ordered Life Partners to stop selling unregistered securities and issued a TRO directing the company to preserve all financial documentation.  The judge declined Texas Attorney General’s request to appoint a receiver to take over the corporation’s financial operations.  

Life partners has been buying life insurance death benefits from elderly and terminally ill policyholders, and then selling those policies to investors without disclosing the life expectancies of the insured.  They are likely violating the Texas Securities Act with this practice. 

See Natalie Posgate, Judge Orders Life Partners to Cease Selling Unregistered Securities, The Texas Lawbook, 2012.