SEC Charges Offshore Company in Life Settlement Bonding Fraud

SEC Press Release (Enforcement)

The SEC announced the filing of a civil complaint against a Costa Rican company that provides financial guarantee bonds on life settlements. The complaint alleges that the company and its "purported" outside auditor misrepresented the company's ability to satisfy its obligations under the bonds. The complaint charges the defendants with violations of the anti-fraud provisions of the Securities Act and Exchange Act. In addition, criminal charges were filed in the matter.

Document Number

SEC PR 2011-15

Date

January 19, 2011

Cross References (links may require a Cabinet subscription)

SEC Complaint

SEC Investor Bulletin on Life Settlement Investments

Securities Act § 17(a)

Exchange Act § 10(b)

Exchange Act Rule 10b-5