The U.S. Securities and Exchange Commission managed to salvage enough of its case against Life Partners Holdings Inc. and its executives to eke out a $47 million judgment against them on Tuesday. That’s far less than the $2 billion the agency was seeking from the defendants, which helped pioneer the business of helping investors gamble on other people’s life insurance policies. But the award may be more than enough to frustrate plaintiffs lawyers pressing a parallel investor class action against the same defendants.
The penalties stem from a jury’s finding in February that Life Partners and its execs filed false or misleading reports to the SEC about their “life settlement” business. The jury rejected the SEC’s core securities fraud claims in the case, however, and U.S. District Judge James Nowlin in Austin threw out lesser fraud claims after the trial.
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