Category Archives: Viatical Settlements

James D. Calder II-Former Raymond James Broker-Sanctioned Over Sale of Life Settlements-Borger, TX

May 2017-Borger, TX

The FINRA records of  James D. Calder II,  a  unregistered stockbroker who was last employed by  Raymond James Financial Services  disclose a final regulatory event and a customer dispute that has been settled.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

In 2/2017, to resolve allegations by FINRA that he engaged in an undisclosed outside business activity by participating in the sale of life settlement contracts to customers of his firm after it had expressly denied his request to participate in such activity, Calder was suspended for six months and fined $15,000.

In FINRA arbitration 15-02822, a customer of Raymond James Financial Services alleged damages of $120,000 in connection with an investment purchased from Calder that was not authorized by Raymond James Financial Services. That case was settled for $75,000.

James D. Calder II was employed by Raymond James from 8/2002-3/2016.

If you have questions about an account  handled by James D. Calder II , contact us to discuss your options.

Viatical Settlement

A viatical settlement is a contract whereby a person diagnosed with a terminal illness sells their life insurance policy for less than its face value in order to obtain a portion of the proceeds while still alive. The buyer (investor) obtains the full value of the policy upon the death of the insured.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Daniel R. Saur-Kalos Capital Broker-Discloses Customer Disputes Over Viatical Settlements-Dallas, TX

May 2017-Dallas, TX

The FINRA records of  Daniel R. Saur  ,  a  stockbroker who is currently  employed by  Kalos Capital  disclose  a pending customer dispute and a  a prior final customer dispute.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

In FINRA Case 15-2389, a customer of Kalos Capital and D.R. Saur Financial alleged damages of $100,000 resulting from an investment in a viatical settlement That case was settled in 3/2017 for $87,195.

In currently pending FINRA Case 17-0046 a customer of Kalos Capital seeks damages of $500,000 and alleges inadequate due diligence, unsuitable recommendations and failure to supervise the broker in connection with the purchase of oil & gas, real estate securities and a viatical settlement.

Daniel R. Saur has been employed by Kalos Capital since 4/2009.

If you have questions about an account  handled by Daniel R. Saur  call for a no charge consultation.

Viatical Settlement

A viatical settlement is a contract whereby a person diagnosed with a terminal illness sells their life insurance policy for less than its face value in order to obtain a portion of the proceeds while still alive. The buyer (investor) obtains the full value of the policy upon the death of the insured.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Clyde D. Jones-Titan Securities Broker-Discloses Customer Disputes Over Viatical Settlements-Whitesboro, Texas

April 2017-Whitesboro, Texas

The FINRA records of  Clyde D. Jones ,  a   stockbroker who is currently registered with Titan Securities disclose 2 pending customer disputes, 2  prior final customer disputes involving viatical settlements and 2 terminations from employment.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

In FINRA case #15-02868 a customer of Titan Securities alleged damages of $425,649 for an unsuitable recommendation to invest in a viatical settlement. That case was settled in 12/2016 for $100,000.

In FINRA case#15-2480 a customer of Titan Securities alleged damages of $133,680 for misrepresentation and unsuitability in connection with an investment in a viatical settlement. That case was settled in 8/2016 for $135,768.

Jones  discloses two currently pending customer disputes involving viatical settlements. One alleges damages of $100,001 and another alleging damages of $108,672.

Viatical Settlement

A viatical settlement is a contract whereby a person diagnosed with a terminal illness sells their life insurance policy for less than its face value in order to obtain a portion of the proceeds while still alive. The buyer (investor) obtains the full value of the policy upon the death of the insured.

Jones has been employed by Titan Securities since 9/2015. From 1/2013-11/2014 he was with EDI Financial. Prior to that he was with Titan Securities from 8/2008-12/2012. In 8/2008 he was discharged from Eagle One Investments for failing to notify compliance about a customer complaint. In 4/2000 he was permitted to resign from Invest Financial Corp. 

If you have losses in an account in an account handled by Clyde D. Jones or if you have losses on an investment in Viatical Settlement  , contact us to discuss how you may be able to recover damages for those losses.

Titan Securities is headquartered in Dallas, Texas, and has been a FINRA member since 2004. They have about 13 brokers located in 7 branch offices in:

  • Arlington, TX
  • Abilene, TX
  • Overland Park, KS
  • Dallas, TX
  • Rowlett, TX
  • Henrico, VA
  • Kingston, OK

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Donald L. Wells-Titan Securities Broker-Sanctioned Over Sales of Life Partners Viaticals-Seattle, WA

April 2017-Seattle, WA

The FINRA records of  Donald L. Wells ,  a   stockbroker who is currently registered with Titan Securities disclose a prior regulatory matter and a  prior final customer dispute.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

In August 2016 Washington securities regulators entered a cease and desist order and fine and costs of $2,700 to resolve allegations that Wells and others violated the Securities Act of Washington through the offer and sale of $17 million of Life Partners, Inc. life settlements to Washington residents from 2009-2014.

Donald L. Wells  has been employed by Titan Securities since 3/2010.

Titan Securities is headquartered in Dallas, Texas, and has been a FINRA member since 2004. They have about 13 brokers located in 7 branch offices in:

  • Arlington, TX
  • Abilene, TX
  • Overland Park, KS
  • Dallas, TX
  • Rowlett, TX
  • Henrico, VA
  • Kingston, OK

If you have losses in an account in an account handled by Donald L. Wells or if you have losses on an investment in Life Partners, Inc.  , contact us to discuss how you may be able to recover damages for those losses.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Walter Parker-Titan Securities Broker-Discloses Customer Disputes Over UDF Investments-Rowlett, Texas

April 2017- Rowlett, Texas

The FINRA records of  Walter W. Parker ,  a  broker with  Titan Securities  disclose 2 pending customer disputes and 2 prior final customer disputes.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

In pending FINRA Case 16-2349 a customer of Titan Securities alleges that they were sold UDF (United Development Funding) which was unsuitable for the customer and he did not understand the risks and did not understand that UDF was illiquid. No amount of damages is stated in the claim.

In pending FINRA Case 15-2351 a customer of Titan Securities alleges damages of $211,975 related to an investment in a viatical settlement which the customer alleges is unsuitable and that it was misrepresented.

In a previous case, FINRA #16-1929, a customer of Titan Securities alleged damages of $50,000 related to an investment in UDF (United Development Funding) which the client states was unsuitable and that he did not comprehend the risks or the fact the investment was illiquid.  That case was recently settled for $16,500.

Walter Parker has been employed by Titan Securities since 8/2006. Parker discloses a business relationship with InsuranceMakesMe Sick.com and InvestingMakesMeSick.com in Rowlett, TX.

Titan Securities is headquartered in Dallas, Texas, and has been a FINRA member since 2004. They have about 13 brokers located in 7 branch offices in:

  • Arlington, TX
  • Abilene, TX
  • Overland Park, KS
  • Dallas, TX
  • Rowlett, TX
  • Henrico, VA
  • Kingston, OK

If you have losses in an account in an account handled by Walter Parker , contact us to discuss how you may be able to recover damages for those losses.

United Development Funding’s Office Raided by the FBI-for more information on recent problems for UDF, follow this link.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Dallas Based Worth Financial Group Sanctioned by Securities Regulator

January 9, 2015

Worth Financial Group  entered into a Letter of Acceptance, Waiver and Consent  (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that  it failed to establish adequate supervisory systems and written supervisory procedures to supervise sales of life settlement investments by the firm’s registered representatives and non-associated individuals for whom the firm received override commissions.

FINRA alleged that from July 2008 to April 2011 Worth sold fractional interests in life settlements issued by Life Partners, Inc., and collected override commissions on those sales.

Worth Financial Group was censured and fined $10,000.

FINRA Case # 2011025625101

Worth Financial Group has been registered with FINRA since 1983 and is headquartered in Dallas, Texas.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Waco Based Life Partners Holdings, Inc.–Future Uncertain

December 22, 2014-Waco, Texas

Life Partners Holdings, Inc. , the Waco company that has been a pioneer in selling interests  in life insurance policies on the  lives of third parties to investors (also known as a “viatical settlement”) was recently ordered to pay $15 million in illegal profits and penalties of $23.7 million, by U.S. District Court Judge James Nowlin. In his ruling, Nowlin noted that the company has “at best a casual attitude” toward securities laws.

In a recent SEC action, Brian Pardo, CEO and founder was hit with a civil penalty of $6.2 million and general counsel and secretary of Life Partners Holdings, R. Scott Peden was ordered to pay a penalty of $2 million.

Business Model of Life Partners Viatical Settlements

The investment model is relatively simple. Using money raised from investors, Life Partners buys the rights to the proceeds of a life insurance policy from an individual who is generally elderly and/or ill, by paying something less than the death benefits of the policy, and the investor agrees to continue making the premium payments until the person dies. Upon death, the investor receives a portion of the insurance proceeds, less fees.

For example, consider the situation described in the Wall Street Journal in a 12/21/2010 article. In summer of 2005, Life Partners investors bought a $2 million policy on the life of Marvin Aslett, who was then 79. At the time the investors were told that he had 2 to 4 years to live. Had he died during as projected at the time the policy was purchased, investors would have realized a tidy return. Unfortunately for the investors,  (and of course fortunate for Aslett and his beloved family) at the time of the WSJ article, Aslett was  alive and well at age 84 , while the investors in the policy were  paying premiums .

Life Expectancies Routinely Underestimated

Obviously if the person on whose life the policy is written dies sooner than projected life expectancy, the investors realize a more favorable return since they pay less in annual premiums and reach payout quicker. This makes the accuracy of the prediction of the longevity of the insured (the actuarial prediction) extremely important.

According to the WSJ article, as well as the allegations in Stone, et al v Pardo, Life Partners, et al pending in the Western District of Texas, those life expectancies are provided to Life Partners by a single person, Dr. Donald T. Cassidy, of Reno Nevada, who is paid a monthly retainer of $15,000, plus $500 for every life policy he assesses.

The allegations are that Cassidy’s life expectancy calculations regularly conclude a life expectancy substantially shorter than the longevity projected by independent firms, a factor that works in favor of Life Partners since it results in a quicker payout, fewer premiums to pay and a greater return to the investor, making it much easier to sell. The Stone case alleges that Cassidy’s predictions are routinely inaccurate in favor of the company and cite a  study in which 283 of 297 policies the insured outlived Cassidy’s predictions, sometimes by as much as twice as long. Thirty-four percent lived triple the estimate of Cassidy per the Stone complaint.

Recourse for Investors

If you invested in Life Partners on the recommendation of your broker or broker dealer or a registered investment advisor you may be able to recover damages. Financial professionals have a duty to perform due diligence on the products they sell and to make recommendations that are suitable given the age, health and level of financial sophistication of the investor. Call to discuss your rights with an experienced securities attorney.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870