“5th Circ. Largely Sides With SEC In Life Partners Appeal”
The U.S. Securities and Exchange Commission persuaded the Fifth Circuit to partly reinstate a jury verdict against two executives at “death bonds” trader Life Partners Holdings Inc. on Friday, but the appeals court also threw out civil penalties after finding that the lower court miscalculated.
The company’s bankruptcy trustee has said Life Partners and Pardo engaged in one of the largest frauds in Texas history. Pardo and Life Partners trumpeted these death bond investments utilizing life expectancy figures that were far shorter than they actually were, deceiving investors, many of them elderly, who were led to believe they would receive double-digit returns, he said.
LPHI is represented by Richard B. Phillips Jr. of Thompson & Knight LLP.