Volume 1 Number 10
March 8, 2004









 

 

VIATICAL & LIFE SETTLEMENTS

 

 


RECEIVER APPOINTED FOR LIFETIME CAPITAL

A receiver has been appointed to oversee LifeTime Capital, Inc., a viatical company that once operated out of Dayton, Ohio, and South Florida.

H. Thomas Moran II, of Oklahoma City, has been appointed receiver to prevent waste and dissipation of the assets of LifeTime.  In January, federal indictments were returned against eight company principals alleged to have participated in a large-scale money laundering, mail fraud and interstate transportation of money obtained by fraud. 

The indictments were the result of a long-term investigation by the Federal Bureau of Investigation, the Florida Department of Financial Services’ Division of Insurance Fraud, and the Florida Office of Financial Regulation’s Division of Investigations.

Moran was appointed receiver at the request of a disgruntled investor in a case filed in the United States District Court for the Southern District of Ohio, Western Division. The case has been assigned to Chief United States District Judge Walter Rice and United States Magistrate Sharon L. Ovington.  It is believed that there are a significant number of LifeTime investors.

LifeTime Capital, Inc. was a corporation created to distribute beneficial interests in life settlement contracts through a national network of independent representatives.  LifeTime has more than 3,000 investors and an approximately $150 million portfolio based on the face value of life insurance policies it purchased with investors’ money.  The policies insured the lives of individuals who were supposedly terminally ill or advanced in age, with relatively short life expectancies.

When LifeTime sold interests in the policies, funds were reserved to pay future premiums.  However, the policies did not mature in the time period declared by LifeTime, and premium reserves were depleted.  As a result, investors were being billed for the premiums. Many of the policies were on the verge of lapsing.  With the court's approval, Moran arranged interim financing to pay the premiums on these policies.  The arrangement of financing by the receiver allows billing of premium expense to the investors to be temporarily suspended. 

Moran was appointed because of his considerable experience in the life and viatical industry and in the takeover and management of distressed/problem viatical companies.  In February 2002, Moran was appointed conservator of the viatical portfolio of Accelerated Benefits Corporation (ABC).  Moran has also worked extensively as a court-appointed consultant with the conservator of Future First Financial Group, a Florida company, which was placed in conservatorship in August of 2002.

Moran will be sending letters to all investors notifying them of the receivership and informing them of how to obtain updated information concerning the receivership.  Investors will soon be able to check the status of the receivership at www.lifetimereceiver.com or call 877-847-8525 to hear a pre-recorded message.

A trial for the indicted principals is scheduled for March 22 in Pensacola.