Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
WE ALL KNOW THE SEC IS A JOKE!
Anyone read this complaint? Its not very well laid out. The conspiracy which Pardo and has ilk always rely on as their rallying cry, is that their FOIA requests were denied. You've got to see the names they requested information on. Pardo is on a witch hunt when you read his complaint. I see it as an act of desperation as the SEC trial starts in Dec.
LPHI has had years of manipulative press releases promoting robust earnings as a means to prop up the stock, only to have those earnings amended and we've now had 2 years of operating losses and a dividend where 51% goes to the Pardo trust offshore continue.
The lack of positive cash flow from operations will kill a company faster than any litigation can. Their margins are forever constrained by the LE underwriting they now promote.
Obviously this is just a smidge above a shot in the dark guess.
LPHI and Pardo have not laid down. I would not expect the matter to just slide away, especially since most LPHI shareholders got trounced in the activity. If a wrong was done then it should be made right. They would do the same to Pardo and company.
opinion only.
Interesting reading! Thanks!
I hope something comes of it, but I won't hold my breath....
The SEC is slow as molasses in January...
and THAT'S WHEN THEY DO ANYTHING AT ALL!!!
Life Partners Holdings, Inc. CEO Files Whistleblower Complaint for Naked Short Selling and Market Manipulation
WACO, Texas--(BUSINESS WIRE)--Jun. 19, 2013-- Brian Pardo, CEO of Life Partners Holdings, Inc. (“Life Partners”) (Nasdaq GS: LPHI), parent company of Life Partners, Inc., announced today that an independent investigation has uncovered substantial evidence of coordinated market manipulation and naked short selling of Life Partners’s stock in and around September 26, 2012. As a result of this investigation, he has filed a whistleblower complaint with the U.S. Securities and Exchange Commission against a number of persons and entities suspected of illegal short-selling activities. Pardo has filed the complaint on Life Partners’ behalf since SEC regulations require that only individual, natural persons can file such complaints.
The investigation was conducted by former SEC Senior Counsel and noted whistleblower, Gary Aguirre. Mr. Aguirre, who has testified before the Senate regarding how politically influential individuals and Wall Street firms taint the SEC’s enforcement decisions, has been an outspoken critic against abusive short selling and the lack of SEC enforcement against this illegal activity.
Naked short selling is the practice of short selling a company’s stock without first borrowing the security as required in a legitimate short sale. Because shares are not borrowed, naked short selling is similar to counterfeiting as it can make a company appear to have many more stockholders selling shares than are actually being sold. In 2008, the SEC banned “abusive naked short selling” as a method of driving down share prices. This abusive tactic is used, often in conjunction with the dissemination of negative rumors, to drive down a company’s stock price for the profit of the short sellers. It can also result in massive job losses, substantial financial losses to legitimate shareholders and ultimately the destruction of companies.
In his complaint, Pardo describes Life Partners as a microcap stock with 18.4 million issued shares. Pardo holds more of than half of these shares, which are unavailable for trading. Accordingly, Life Partners has less than 9.2 million shares available for trading and usually less than one million shares are available for borrowing. In the 12-month period before September 2012, Life Partners’s stock had an average daily trading volume of 112,000 shares.
The complaint demonstrates that market participants, identifiable through blue sheets, manipulated the price of Life Partners’ stock on September 26 and 27, 2012, through massive naked short selling in violation of the SEC’s Regulation SHO. A public announcement of highly favorable news after the market close on September 25, 2012 – Life Partners success in a legal action - generated strong upward pressure on the stock price when the market opened on September 26. Over the next two days, approximately 15.2 million shares traded. The upside pressure was resisted by aggressive short selling at the bid from the market’s opening on September 26 and continued unabated until a price reversal on September 27. Over these two days, at least 2.16 million shares were shorted at the bid, a type of trade that fits within no exception to the legal borrow requirements. Altogether, a staggering 6.96 million shares were sold short over the two days. At the time, there were at most 1 million shares available for borrowing and perhaps none. Major violations of Reg SHO were a virtual certainty.
The complaint further demonstrates other violations, such as the requirement that short sellers must deliver by the settlement date. If 6.96 million shares were properly borrowed, they would have resulted in an increase of shares on loan. But by October 3, 2012, the day after the settlement date for the trades on September 27, the shares on loan had only increased by 27,600 shares. If the shorts were not covered by the settlement date, they were naked and in violation of Reg SHO.
Under the whistleblower provisions of the Dodd-Frank law, a reward may be issued if the SEC is successful in collecting fines against the violators. Mr. Pardo has assigned any such reward to the Life Partners Holdings, Inc. and no officers or directors would receive any part of such an award.
Life Partners Holdings CEO Brian Pardo commented, “It is a tragedy to realize that there are well-known financial entities that intentionally try to destroy companies with these abusive tactics, without any regard for the lives of the workers and the investors they ruin. The original purpose of our financial markets was to bring capital to companies so they could grow and, in turn, contribute to the growth of our whole economy. This small group has hijacked our financial markets for their own gain. I just hope that the SEC will use the clear evidence we have provided to them to bring those who are working against our economy to justice. In my view, naked short selling is a form of financial terrorism.”
Pardo further suggests in the complaint that FINRA settlements with UBS and Credit Suisse speak to the enormous magnitude of naked short selling. He points to the recent SEC settlement with the Chicago Board Options Exchange, which shows how an SRO was compromised by those who engage in naked short selling. An investigation of the allegations in the whistleblower complaint filed by Mr. Pardo promises to provide the SEC with an opportunity to contain naked short selling while affording better insights into how naked shorting is being used to afflict small public companies.
Life Partners is the world’s oldest and one of the most active companies in the United States engaged in the secondary market for life insurance, commonly called “life settlements.” Since its incorporation in 1991, Life Partners has completed over 149,000 transactions for its worldwide client base of over 29,000 high net worth individuals and institutions in connection with the purchase of over 6,500 policies totaling over $3 billion in face value.
Visit our website at: www.lphi.com.
Safe Harbor - This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. The statements in this news release that are not historical statements, including statements regarding the basis, prosecution or outcome of the claims in the whistleblower complaint, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond our control, that could cause actual results to differ materially from such statements. For information concerning these risks and uncertainties, see our most recent Form 10-K. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.
LPHI-G
Source: Life Partners Holdings, Inc.
Life Partners Holdings, Inc.
Andrea Atwell, 254-751-7797
Shareholder Relations
e-mail: info@lifepartnersinc.com
Thank you Mr. Pardo!
"7:18AM Life Partners Holdings provides whistleblower complaint information sheet in 8K (LPHI) 2.82 : Co announces that an independent investigation has uncovered substantial evidence of coordinated market manipulation and naked short selling of Life Partners' stock in and around September 26, 2012. As a result of this investigation, he has filed a whistleblower complaint with the U.S. Securities and Exchange Commission against a number of persons and entities suspected of illegal short-selling activities. Pardo has filed the complaint on Life Partners' behalf since SEC regulations require that only individual, natural persons can file such complaints. "
http://finance.yahoo.com/marketupdate/inplay#lphi
sounds good to me.
I'm guessing they're trying to conserve cash for their continuing legal struggles.
I'm here until the SEC mess shakes out one way or the other...
I think there is a reason Tad Ballantyne bought 262,700 shares
on the open market.
If he is willing to risk that much money,
then I figure I should be able to risk a few bucks!
Go TAD!
no biggy to me LOL. Been in it long enough to have snagged it at much lower than present price when they were just coming out of their Texas lawsuit pricing mess.
Sorry for you if you are in them.I keep them in my watch list and saw them heading south today.Good Luck
yes it does. 10:23 AM Life Partners Holdings (LPHI) declares $0.05/share quarterly dividend, 50% decrease from prior dividend of $0.10. Forward yield 5.42%. For shareholders of record June 14.Payable June 15.Ex-div date June 12.
Dividend cut to .05 for this quarter.50% slice.That explains the tanking price
There's someone who showed me the tricks and we ended up in this board.
cool i didn't know if the recent article was cause to worry. Thanks for your inputs
?
Hasn't it all been discussed?
There was the Texas officails that tried to shut them down too...
those guys lost...
although I guess they can still appeal.
People have been dogging this company with lawsuits for YEARS!
(don't get me wrong...that IS cause to worry...it's not like it's a GOOD thing! LOL)
Have you read through the filings?
I'm betting that things will resolve favorably...
Tad must think the same thing
or why has he bought so many shares?
(that's BOUGHT...not been given... like so many CONpanies do)
But as ALWAYS...
Don't "invest" more than you can afford to lose :)
Notice Tad ammended Form 4's?
He now has 262,700 instead of 239,424 as reported last...
You need to do whatever YOU are comfortable with...
I'm not going anywhere just yet.
I'm waiting to see the outcome of the SEC mess.
Win big? or lose it?
Time will tell...
in the meantime, I'm collecting a nice divy and have no complaints!
Best of Luck!
yup, I did not know about it.
Why?
Didn't you already know about the pending lawsuits and SEC charges?
Dainne is it time to bail ya think???
Heygood, Orr & Pearson Launches Life Partners Lawsuits Website for Individual Purchasers of Life Settlements Investments
Dallas, Texas, Apr 22, 2013 (PRWeb.com via COMTEX) -- The law firm of Heygood, Orr & Pearson is announcing the launch of its new website, Life Partners Lawsuits (http://www.lifepartnerslawsuits.com/). The site will serve as a resource for news and information about the life settlements company Life Partners Holdings, Inc. (LPHI) and its affiliates.
The Waco, Texas-based Life Partners, Inc. sells a type of investment product known as life settlements. Life settlements are life insurance policies which are sold by the insured individual to a third party for immediate cash payment that is less than the face value of the policy. When the insured individual dies, the benefit from the policy is paid to the purchaser.
The value of life settlement investments is determined in large part by the life expectancy of the insured individual: the shorter the life expectancy, the sooner the investor can expect to receive payment on their investment, and, thus, the more valuable the policy.
According to lawsuits filed against Life Partners and its executives (No. D-1-GV-12-001128, 201st Judicial District), the company hired a doctor in Nevada named Dr. Donald Cassidy who allegedly provided inaccurate life expectancy estimates on the lives of the people insured under the life settlement policies offered by Life Partners to investors. The lawsuits allege that out of 282 life settlement investments that were sold through Life Partners from 2007-2009, Dr. Cassidy underestimated the life expectancy of the insured by an average of nearly five and one half (5 1/2) years, drastically inflating the value of these policies.
The lawyers at Heygood, Orr & Pearson have filed lawsuits against Life Partners (No. 352-265287-13, 352nd Judicial District) on behalf of investors nationwide who purchased life settlement investments through the company. If you or a loved one purchased life settlements through Life Partners, you may be eligible to file a lawsuit and seek compensation. For a free legal consultation about your case and to find out if you qualify for a lawsuit, contact our attorneys by calling toll-free at 1-877-446-9001, or by sending us an email at info (at) hop-law (dot) com.
About Heygood, Orr & Pearson
The lawyers at Heygood, Orr & Pearson (http://hop-law.com/) have represented hundreds of individuals in cases involving personal injury, wrongful death, commercial litigation, and business disputes. Our attorneys have tried over 200 cases to verdict, and have achieved verdicts and settlements for our clients totaling more than $200 million, including settlements of more than $50 million in 2012 alone.
In addition to clients who purchased Life Partners life settlements, our law firm also represents clients in product and pharmaceutical liability cases involving the fentanyl pain patch; Actos bladder cancer; SSRI antidepressants; opioid painkillers such as hydrocodone, methadone and oxycodone; transvaginal mesh; Pradaxa; and table saw injuries. We also handle cases involving other areas of law, including lawsuits involving commercial disputes, contract claims, qui tam whistleblower claims, intellectual property disputes, and other business and injury claims.
Read the full story at http://www.prweb.com/releases/2013/4/prweb10642894.htm
PRWeb.com
PRWEB.COM Newswire
so by current moment by mid may we will have see cooling to low 3 ish range. i hope i got some moo-la to add by then.
Dianne. I've been thinking that on the next wave up we will see a high of 5.76ish, 6 if we are lucky on the next run up in the next two months. Any thoughts?
Dianne,
So we've seen $4 from $1 back in sept. I've been good at guessing were we are going and i would like to think by the end of the year $10 will be possible, but i was wondering what your thoughts on this one is for the next bounce up?
After Tad's buys are up i think it will cool to 3.85 to 4 range but continue to soon after climp to the $5 then later on even 6. i just wonder if this guy will make it to 10? Dainne dawn thanks agian for pointing me in this stocks direction!
yes but i love the shares i got. i'm trying to figure if i sell at 10 or wait for 20 lol :P
Here's the latest share count for our buddy Tad...
4 1/2 months and 10 form 4's later...
he's gone from 0 to 227,724 shares
:)
I'll bet he's pretty happy with his first purchases back in Oct in the 2's!
I guess your not going to get to buy more below 3...
Oh well
:)
I guess your not going to get to buy more below 3...
Oh well
:)
wow finally above $4. I love this stock!
10:35 AM Life Partners Holdings (LPHI) declares $0.10/share quarterly dividend, in line with previous. Forward yield 10.78%. For shareholders of record Mar. 08. Payable Mar. 15. Ex-div date Mar. 06
I think 2.70 to 2.80ish is entirely possible...
under $3 at least
:)
Hey Dainnedawn. i'm unfortunately thinking about taking a 500 loss to buy back into LPHI. What range do you think i should avg up in? I can't make up my mind. I don't think we will see 2.70 again and that's kinda my hopeful range.
Yup! Here's another one!
http://www.sec.gov/Archives/edgar/data/49534/000137236113000002/xslF345X03/primary_doc.xml
Another 31216 shares bought between 3.18-3.85
Gotta LOVE this guy!
How many OTHER companies have you been in
where an insider buys hand over fist
on the open market???
I know the answer for me is ....DAMN FEW!!!
i love tad! should i be buying more shares i wonder?
HERE'S WHY WE'RE GOING UP...
http://www.sec.gov/Archives/edgar/data/49534/000137236113000001/xslF345X03/primary_doc.xml
Tad is buying shares again...
23000 between 3.11-3.14
I bet we will see another Form 4 filed in a day or so.
:)
$4 coming up!!
everyone tells me to buy life insurance... I'm glad i bought LPHI. I love this stock!
lol nope this puppys gonna ride into monday. hemp con over the weekend is a big thing.
Up to .085 now.Get out
I'm tryng to get out of em but i ave been married to a few lol.
You know what they say...
if you're nervous, take your basis off the table and let the rest ride.
Of course the time to do that would've been 2 days ago...
:)
Ya just never know.
In my experience, pennies ALMOST ALWAYS pull back after a big spike.
I don't bother to trade in and out of pennies,
cuz I never put much IN,
but if I did have a large amount (or a large % of my portfolio)
in a penny, I would be dumping on any big spike.
Everyone else always does...
that's why they can never hold a gain!
Good Luck!
yup. i'm on edge today i don't know if i need to sell or stay put in H E M P. Im in for .05 and this one has been playing with my emotions today. It's not acting like your normal penny but it's been on a run for a week now.
I bought a small amount of this around the time I first found it
(about 2.30ish?)
I've averaged up twice :)
(current avg 2.77)
still puts me up 11% today...and that doesn't count the divy we got in Dec.
I LIKE this nice little bounce we're enjoying!
Must be people jumping in before the March divy?
I still have a relatively small position.
I'll add some more at some point
as cash becomes available.
What did you finally get in at?
I'm happy with my purchase here...
better then some of the coices I've made!
:)
Hey, you should take a look at RDNY...
another divy payer,
but mostly the divy will be a bonus.
I think it's undervalued and it seems others
are starting to agree...
I'm up 9% now.
Best of Luck!
hehe bout to break $3 today. I'm waiting on that next dividend, but by the it wont buy me as many shares as in Dec.
Still paying that nice dividend I see.May have to rejoin the party when I free up some cash next month
just checking in to say i love this stock!!
Hey Dainnedawn! hmm i want to buy more!!! but instead i bought 1oz gold and 10 silver.... I have an investing problem do they have meetings on wallstreet for that? lol
Followers
|
17
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
928
|
Created
|
06/04/07
|
Type
|
Free
|
Moderators |
WACO, TX - December 21, 2010
Dear Investors,
This morning, the Wall Street Journal ran an article that, in our view, provided a misleading depiction of some of our business practices and appeared to be based on anecdotal or incomplete information and the self-serving criticisms of some of our competitors. We would like to set the record straight.
One of the focal points of this article was the system utilized by Life Partners to obtain estimates of life expectancies ("LE"). According to the article, a higher-than-expected number of insureds are exceeding the LEs on policies purchased through Life Partners Holdings, Inc.'s operating subsidiary, Life Partners, Inc. ("LPI"). However, as trade publications have reported, this phenomenon has been experienced throughout the life settlement industry and is not exclusive to LPI. The one factor in a life settlement transaction that can be controlled and adjusted is the discount at which the policy is acquired. Unlike other companies, LPI calculates sensitivity of return utilizing LE to set a reasonable premium escrow amount, and does not rely exclusively upon LE as the primary factor for profitability. LPI only purchases policies that are economically feasible, under both predicted circumstances as well as in the event the insured outlives their LE by a number of years.
LPI also provides its clients with analytical tools that can be applied to any policy being considered for purchase, so that the breakeven point can be determined. This refocuses the key element of profitability from LE accuracy to the discount to face amount. Few if any LPI clients are able to acquire interests in a large enough universe of policies to recreate statistical mortality tables. Therefore, statistical probabilities should not be considered to be the principal predictive factor with respect to potential returns. Instead, each life settlement transaction is structured with the goal of achieving the purchaser's target return and at a minimum, a positive return even if the insured outlives their LE prediction. In that way, the purchaser has the potential for superior returns, but also has a safety margin in the event that the LE for any or all policies is exceeded.
Further, as the article fails to note, the vast majority of purchasers acquire fractional interests in a number of policies, which provides them with risk diversification. While the LE for some of those policies may be exceeded, the purchaser may receive the proceeds on others significantly prior to their LE timeframe. It is the overall return on the funds that each purchaser dedicates to the purchase of policies that matters, not just the selected policies on which LE may have been exceeded.
The Wall Street Journal article also raises unwarranted issues regarding LPI's fee structure. During the past fiscal year, LPI's net income as a percentage of the face amount of policies that were the subject of life settlements arranged by LPI was approximately 11%. This amount is borne by the sellers of the policies as a discount to the price that they would otherwise receive if they were able to negotiate with a willing purchaser or group of purchasers directly. The discount at which LPI prices most policies allows for investors to achieve positive returns even when a policy is held for 12 years, including premium payments.
By purchasing policies at a significant discount to face value, LPI provides an opportunity for purchasers to both preserve principal and achieve a modest return, even if the LE is exceeded by five to seven years.
As always, we are continually reviewing our processes and operations with an eye toward providing even greater value to our investors and purchaser clients. We believe investors who are looking for long-term growth in an alternative asset class will continue to recognize the value that life settlement transactions bring to both the purchasers and the sellers of these policies.
Brian Pardo
CEO/Chairman of Life Partners Holdings, Inc.
Life Partners is the world's oldest and one of the most active companies in the United States engaged in the secondary market for life insurance, commonly called "life settlements." Since its incorporation in 1991, Life Partners has completed over 126,000 transactions for its worldwide client base of over 27,000 high net worth individuals and institutions in connection with the purchase of over 6,400 policies totaling approximately $2.7 billion in face value.
Safe Harbor - This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. The statements in this news release that are not historical statements, including statements regarding future financial performance, the market for our services, the growth in the life settlement market and our growth within that market, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond our control, that could cause actual results to differ materially from such statements. For information concerning these risks and uncertainties, see our most recent Form 10-K. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.
************
LPHI-G
FOR MORE INFORMATION, CONTACT:
Shareholder Relations (254) 751-7797 or info@LPHI.com
Visit our website at: www.lphi.com
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |