Life Settlement - Education News

R. Alexander Acosta, United States Attorney for the Southern District of Florida, and Jonathan I. Solomon, Special Agent in Charge, Federal Bureau of Investigation (“FBI”), announced today the guilty plea of defendant Clark Mitchell before United States District Judge Paul C. Huck in Miami. Clark Mitchell, a medical doctor once associated with Mutual Benefits Corp. (“MBC”), pled guilty to securities fraud in connection with his role in a viatical and life settlement scheme in which 28,000 investors lost approximately $956 million, in violation of 15 U.S.C. §§ 78j(b) and 78ff(a), 17 C.F.R. §240.10b-5, 18 U.S.C. § 2. Mitchell also pled guilty to conspiracy to commit health care fraud in connection with his employment at Community Healthcare/CenterOne, Inc (“CenterOne”), a South Florida AIDS clinic, in violation of 18 U.S.C. §371. Pursuant to the terms of his plea agreement, Mitchell faces a prison sentence of 10 years and a fine of over $5 million. Mitchell also agreed to be responsible for approximately $367 million in restitution payable to MBC investors, and more than $500,000 of restitution for the health care fraud. Sentencing is scheduled for March 7, 2007.

Marvin Margolis, an 80-year-old Manhattan financial consultant, is looking for investors willing to bet on when he will die.

Two years ago, Mr. Margolis bought a large life insurance policy. Now, he’s considering selling it to a group of investors, a deal that should give him as much as $2 million to enjoy in his final years. In return, the investors will get the policy’s $7 million payout when he dies — which they hope will be soon, so they can stop paying his premiums.

Life Insurance Finance Association Conference to Feature Diverse Panel of Speakers
Organization Recommends Early Conference Registration; Space is Limited.

Myths and realities surrounding the life insurance premium finance industry will be clarified Nov. 29 by industry experts, including state regulators, attorneys, producers, agents and lenders, who will make up the panel of speakers at the first Life Insurance Finance Association.

The legal team representing Maurice “Hank” Greenberg said Wednesday that Eliot Spitzer has dropped “key” charges against the former American International Group chief executive. However, Darren Dopp, a spokesman for the New York Attorney General, said the “guts” of the civil complaint against Greenberg remain, including charges related to transactions involving Berkshire Hathaway’s (BRKA) (BRKB) General Re division.

The insurance industry is a sweeping part of our culture that impacts many aspects of our lives, both personal and professional. But, rather than try to grade the entire industry, I would like to focus my “mid-year grading report” on recent trends in the area of life settlements.