"The SEC suit is scheduled for jury trial beginning January 27, 2014. The SEC is asking the court to enjoin us, Brian Pardo, Scott Peden and David Martin from future violations of the Federal securities laws, to order the disgorgement of any ill-gotten gains, to pay civil penalties, to prohibit the individual defendants from acting as an officer or director of any publicly held company, and ordering Pardo and Martin to reimburse us for compensation bonuses based on the allegedly misstated financial statements. If the jury were to find against us or the individual defendants and the court were to order some or all of the relief sought, the court’s order would have a materially adverse effect on our ability to operate, especially if Pardo, Peden or both were ordered to resign as officers and directors. Even if Pardo and Peden were allowed to remain and any disgorgement or civil penalties were not substantial, a jury’s finding of violations would damage our goodwill, which is important to our success.
It is possible that the jury could find in our favor and determine that no violations occurred, yet if the court’s preliminary ruling that our life settlement transactions are sales of securities stands, the ruling would be disruptive and would require significant changes to our business model. The changes would likely include a switch from the sale of fractional interests in life insurance policies to the sale of interests in special purpose entities that hold the policies, an expansion in the scope of transaction disclosures and in the means of delivering the disclosures, the use of a FINRA-registered broker/dealer to supervise the private placement of the settlement interests, and the registration of our licensees as agents of the broker/dealer. We cannot give any assurance that the market will accept these changes in our business model."
Mr. Market seems to be worried that they might actually win
:)
When I have time, I will check PACER again, but I expect we will get and 8K announcing the verdict as soon as it would show up there.
I've hardly had time to check in here or even watch my stocks
as we have a family member in the hospital.
It's funny to me that the SEC has wasted so much time on THIS
when there is so much more BLANTANT FRAUD going on!
Oh well...GOOD LUCK LPHI!!!
As with so many things in life, I will continue to appear wrong until I am shown to be correct.
:)
