June 16, 2017
Dallas - On June 13, 2017, Thompson & Knight LLP attorneys Jennifer Rudenick Ecklund, William L. Banowsky, and Mackenzie S. Wallace obtained a verdict in favor of the Life Partners Creditors’ Trust (“the Trust”) in a case against Brian Pardo, Life Partners’ founder and former CEO, and R. Scott Peden, former general counsel and president, and various other entities formed by Pardo based on the fraudulent scheme perpetuated by Pardo and others in the sale of life settlements. The Defendants knowingly sold fractional interests in life settlements to their retail investors using a life expectancy rendered by a single doctor with no actuarial training, while concealing the fact that Life Partners had other life expectancies from reputable, independent life expectancy providers in their files that were frequently two and three times as long as those provided to investors.
On Tuesday, a jury in the Northern District of Texas returned a verdict in favor of the Trust on various counts, including fraud, fraudulent transfer, and breach of fiduciary duty, with damages on all claims totaling more than $65 million. The trial lasted six days, and the jury deliberated for a day and a half before returning a verdict in favor of the Trust.
The Trust was formed as a part of the Plan of Reorganization implemented after a nearly two-year bankruptcy process, and for the benefit of Life Partners’ investors, and brought claims on their behalf, as well as on behalf of the bankrupt company.