Parsad Posted December 30, 2009 Share Posted December 30, 2009 LOL! You're effing kidding me! Wow...red flag galore. Cheers! Link to comment Share on other sites More sharing options...
Parsad Posted December 30, 2009 Share Posted December 30, 2009 Oh, here we go...found their own description of these investments: http://www.lifepartnersinc.com/about/community.html Cheers! Link to comment Share on other sites More sharing options...
Parsad Posted December 30, 2009 Share Posted December 30, 2009 And those investments helped the John Wood's ministry: http://johnwoodsministries.org/ Yikes! Cheers! Link to comment Share on other sites More sharing options...
Guest ValueCarl Posted December 30, 2009 Share Posted December 30, 2009 What's the matter Parsad? Wasn't that charlatan good enough looking, and a smooth enough talker for you to take his call? :-* He looks like Ben Affleck in "Boiler Room." Indeed, a fool and his money, they shall part. Link to comment Share on other sites More sharing options...
Guest HarryLong Posted December 30, 2009 Share Posted December 30, 2009 Olye, you win the prize! Email me to collect. Link to comment Share on other sites More sharing options...
Guest kawikaho Posted December 30, 2009 Share Posted December 30, 2009 "We periodically use an aircraft owned by our Chairman, Mr. Pardo, and pay him the incremental costs of our use, as described in applicable Federal Aviation Administration regulations (FAA Part 91, subpart F). We believe the cost is well-below the fair rental value for such use. In the six months ended August 31, 2009 and 2008, we paid Mr. Pardo $188,739 and $60,283, respectively, for such use." Yeah, that stood out to me too. And how do you value a wooly mammoth? Here is afew things that bother me. We contract with ESP Communications, Inc., a corporation owned by Brian D. Pardo’s spouse, for post-settlement services. The services included periodic contact with insureds and their health care providers through telephone calls and mailings, monthly checks of social security records to determine a insured’s status, and working with the independent escrow agent in the filing of death claims. ESP also provides facilities and various administrative personnel to us. Either party may cancel the agreement with a 30-day written notice. We currently pay ESP $7,500 on a semi-monthly basis for its services. During Fiscal 2009, we paid ESP $180,000. The Audit Committee has determined that the payments are reasonable and equal to or less than amounts that would be payable to an unaffiliated third party for comparable service. In June 2007, we purchased an aircraft and formed a wholly owned subsidiary, EZ Flight, LLC, to hold title to and operate the aircraft as well as hangar facilities for such aircraft. After purchasing the aircraft, however, we determined that the accounting treatment would be more favorable and our internal controls would be more transparent and easier to administer if we did not own the aircraft, but had access to it and would reimburse the owner for the costs of our use. On December 12, 2007, our Chairman, Mr. Pardo, purchased the aircraft for the same price we paid and permits us to use the aircraft for business purposes. We pay the incremental costs of our use, as described in applicable Federal Aviation Administration regulations (FAA Part 91, subpart F), which we believe is well-below the fair rental value for our use. In Fiscal 2009, we paid $216,882 for such use. We also provide hangar space to Mr. Pardo, the value of which we estimate at $13,500 per annum for each aircraft held in the hangar, which totals to $27,000. The Audit Committee has determined that these arrangements are on terms no less favorable than terms generally available to an unaffiliated third-party under the same or similar circumstances. Cheers Link to comment Share on other sites More sharing options...
Guest ValueCarl Posted December 30, 2009 Share Posted December 30, 2009 Oh yeah, and apologies to Harry Long who didn't play Dirty Harry in this scene. He knew the fraud all along. Link to comment Share on other sites More sharing options...
Phoenix01 Posted December 31, 2009 Author Share Posted December 31, 2009 To summarize: Pardo from Waco! - runs the company like he owns it. (Oops! He does. Over 50%) ---Subsidized airplane ---Private mammoth museum in the stock room ---He is in bed with his wife (her company anyways) He is definitely no Prem or Warren. Life settlement is a profitable business that is on the fringe and it appears that Pardo is too. Harry, Thanks for pointing out the shareholder sponsored museum. Have you had a chance to visit? (Just curious) Link to comment Share on other sites More sharing options...
Guest HarryLong Posted December 31, 2009 Share Posted December 31, 2009 To summarize: Pardo from Waco! - runs the company like he owns it. (Oops! He does. Over 50%) ---Subsidized airplane ---Private mammoth museum in the stock room ---He is in bed with his wife (her company anyways) He is definitely no Prem or Warren. Life settlement is a profitable business that is on the fringe and it appears that Pardo is too. Harry, Thanks for pointing out the shareholder sponsored museum. Have you had a chance to visit? (Just curious) The Big-H always meets with management face-to-face. You need to press the flesh, look a man in the eye, see if you trust him, and when it's called for, examine prehistoric beasts of yore. Wise man say, always ask for a company tour at the end of a meeting (and by meeting, I mean KGB-style interrogation). Olye, email me, contrariangroup@gmail.com. I owe you $30. Link to comment Share on other sites More sharing options...
Zorrofan Posted December 31, 2009 Share Posted December 31, 2009 Indeed, a fool and his money, they shall part. i thought it was "a fool and his money, they shall party"? ;D cheers Zorro Link to comment Share on other sites More sharing options...
Guest ValueCarl Posted December 31, 2009 Share Posted December 31, 2009 Only in America where fiat printing machines spearheaded by reckless bankers operating without checks and balances, transparency or accountability for their own actions continue to rule. The party ends, however, when those control freaks dictate that the music stops while placing the party bill squarely on top of the taxpayers triangular party hats much to their own chagrin. <"a fool and his money, they shall party"?> Link to comment Share on other sites More sharing options...
Phoenix01 Posted March 10, 2010 Author Share Posted March 10, 2010 For a good analysis of LPHI, take a look at the links below. http://harbor.typepad.com/analysis/2010/01/life-partners-1.html http://harbor.typepad.com/analysis/2010/02/life-partners-2.html http://harbor.typepad.com/analysis/2010/03/life-partners-3.html Link to comment Share on other sites More sharing options...
ragnarisapirate Posted April 6, 2011 Share Posted April 6, 2011 *Bump* Curious to see the thoughts of people now that the SEC is investigating and such. Link to comment Share on other sites More sharing options...
cman Posted April 7, 2011 Share Posted April 7, 2011 invest here and you are likely to lose 100% of your capital. my 2c Link to comment Share on other sites More sharing options...
twacowfca Posted April 7, 2011 Share Posted April 7, 2011 invest here and you are likely to lose 100% of your capital. my 2c The borderline ( is it fraud or isn't it fraud ) practices of this company include having someone express an opinion on the life expectancy of a policyholder that is not grounded in sound actuarial science, and showing this to their suck, oops, I mean investors, who then buy that policy and agree to make premium payments until that person dies. Investigators charge that the projected life expectancies are unrealistically short. Link to comment Share on other sites More sharing options...
Guest HarryLong Posted April 7, 2011 Share Posted April 7, 2011 And just think, if it wasn't for the woolly mammoth I saw.... 8) Link to comment Share on other sites More sharing options...
twacowfca Posted April 7, 2011 Share Posted April 7, 2011 And just think, if it wasn't for the woolly mammoth I saw.... 8) Who knows? The second life of this company may be selling interests in rare collectibles. If gold can appreciate at a high rate, imagine how much the price of a one-of-a-kind stuffed woolly mammoth could shoot up! Their present difficulties could present a buying opportunity! :o Link to comment Share on other sites More sharing options...
Phoenix01 Posted April 8, 2011 Author Share Posted April 8, 2011 The company sells to fractional policies to a pool of investors. In general everyone makes money. The policy holder gets more than the insurance company is willing to pay out and the investors get some positive return. In the earlier years, the returns for the entire industry were not so good, but lately the returns have been better. LPHI is buying a lot of the policies for themselves. I think the company is the victim of short sellers and that the issues are overblown. The integrity is still a problem. They compete with their own customers and use the company assets for their own benefit. There are much better places to be invested. I was going to sell out at the peak, but I did not want to pay taxes on the gains. This has happened to me several times before. I need to discipline myself to ignore the tax implications and make decisions purely on the trade. Paying taxes is better than losing money!!! Link to comment Share on other sites More sharing options...
Kraven Posted April 8, 2011 Share Posted April 8, 2011 Life settlements are a very tricky business. Many of the people involved in the business would make used car salesmen seem like prim and proper royalty. Link to comment Share on other sites More sharing options...
twacowfca Posted May 14, 2011 Share Posted May 14, 2011 invest here and you are likely to lose 100% of your capital. my 2c The borderline ( is it fraud or isn't it fraud ) practices of this company include having someone express an opinion on the life expectancy of a policyholder that is not grounded in sound actuarial science, and showing this to their suck, oops, I mean investors, who then buy that policy and agree to make premium payments until that person dies. Investigators charge that the projected life expectancies are unrealistically short. The SEC thinks they're over the line. They got a Wells Notice from the SEC two days ago. CEO Brian Pardo and Director Scott Peden were also named in the notice. Bottom fishing this one is likely to bring up a nasty catch because this opens the door for their "partners" to sue them over deals that soured. Link to comment Share on other sites More sharing options...
ubuy2wron Posted May 14, 2011 Share Posted May 14, 2011 In spite of the hair on this dog of an investment ,the business is actually VERY interesting if this co was run by a strong actuary with a good marketing arm it has a pretty good moat. Having to die to collect your life insurance seems pretty unfair for someone who is clearly terminal some life insurance co's will allow you to get some access to your estates capital but they rape you in the process. It will become even more unfair going forward as medicare becomes gutted. The only way some people will be able to afford medical treatment will be to make their hospitals beneficiaries or to get advances from insurance co's. talk about unintended consequences or Catch 22. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now