Wednesday, April 29, 2009
NASAA President Testifies on Life Settlement Fraud
State securities regulators continue to see problems of fraud and abuse in the growing life settlement industry and outlined for Congress the need for strong regulation of these financial products by appropriate regulatory authorities, NASAA President and Colorado Securities Commissioner Fred Joseph told the U.S. Senate Special Committee on Aging in a hearing exploring the life settlement industry and its impact on seniors. “Thousands of investors, many of them senior citizens, have been victimized through fraud and abuse in the sale of viaticals and life settlements,” Joseph testified. “Notwithstanding substantial successes by securities regulators in their enforcement actions, and higher standards among some industry participants, abuses continue and diligent oversight of these products remains necessary.”
Joseph told the panel that effective regulation of life settlements requires a joint effort by securities and insurance regulators. “Life settlements are complex financial arrangements, involving both securities and insurance transactions,” he said. “Consequently, regulating them effectively requires a joint effort by securities and insurance regulators, each applying their laws and expertise to different aspects of the product.”
Do you know of anyone who has sued to recover their settlement proceeds back once sold to one of those purchasing agencies?
Posted by: Dana | Jan 25, 2010 8:57:42 AM