If you purchased an ABC Viatical through a registered broker dealer,
we can recover your losses. If you are counting on the class action to
recover your losses, you will be sorely disappointed. Most investors
will be fortunate to get back 10% of their investment.
Learn more by reading what the Securities and Exchange Commission has
to say about ABC Viaticals and the alleged fraud perpetrated on
investors.
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20035 / March 9, 2007
SEC v. ABC Viaticals, Inc., C. Keith LaMonda and Jesse W. LaMonda
Jr., defendants, and LaMonda Management Family Limited Partnership,
Structured Life Settlements, Inc., Blue Water Trust and Destiny Trust,
relief defendants, Civil Action No. 3-06-CV-2136-P (U.S.D.C./N.D.
Texas, Dallas Division)
SEC Charges ABC Viaticals, Inc. and its
Principals, Keith and Jesse LaMonda, with Fraud in their Offer and Sale
of Life Settlements, and Freezes Assets for the Benefit of Defrauded
Investors
On November 17, 2006, the Securities and Exchange Commission (SEC)
filed a complaint in the United States District Court for the Northern
District of Texas against ABC Viaticals, Inc. (ABC), and its former
President, Keith LaMonda and his brother, Jesse LaMonda, for their roles
in the fraudulent and unregistered offer and sale of fractionalized
interests in life insurance policies, known as life settlements. With
the consent of the parties, Judge Solis entered an order granting a
preliminary injunction, an asset freeze, the appointment of a receiver,
and other relief.
In its complaint, the SEC alleges that from at least June 2001 through
November 2006, ABC raised at least $100 million from over 4,000
investors worldwide from the sale of life settlements with guaranteed
returns from 27% to 150%. ABC Viaticals claimed that investor funds were
controlled by an independent escrow agent, that monies sufficient to pay
premiums for the life expectancy of the insured were segregated in a
separate escrow account, and that financial guarantee bonds purchased by
ABC Viaticals would "fix" the date and amount of the investor's return.
The complaint, however, alleges that the LaMondas exercised de facto
control over all funds held by its escrow agents, never fully funded the
escrow accounts to pay premiums on the policies, siphoned millions of
dollars of investor funds into their own pockets or entities they
controlled, and used a bonding company that they knew would not perform
when bonds came due. The complaint further alleges that the LaMondas
never disclosed to investors and potential investors that in July 2005
they were indicted for their role in the fraudulent sale of viatical and
life settlement investments through Accelerated Benefits Corp.
(Accelerated Benefits), or the fact that they and Accelerated Benefits
were the subject of at least seven state regulatory actions based on
their sales of viatical and life settlement investments.
The complaint charges ABC and the LaMondas with violating Sections 5(a),
5(c) and 17(a) of the Securities Act of 1933 (Securities Act), and
Section 10(b) of Securities Exchange Act of 1934 (Exchange Act) and Rule
10b-5. The court granted a preliminary injunction that included an asset
freeze and the appointment of a receiver over ABC and the LaMondas. In
its action, the SEC is seeking additional relief, including permanent
injunctions, disgorgement, and civil penalties against ABC and the
LaMondas.
On March 7, 2007, the jury in the LaMondas' criminal trial convicted
Keith and Jesse LaMonda on all counts charged, including mail and wire
fraud, for their role in selling viatical and life settlements through
Accelerated Benefits. The LaMondas face up to 30 years in prison and
over $100 million in criminal restitution. See United States v. C. Keith
LaMonda et al., 6:05-cr-00131-JA-JGG-1 (U.S.D.C./M.D. Florida, Orlando
Division).
http://www.sec.gov/litigation/litreleases/2007/lr20035.htm
We are seeking the recovery of client losses, interest, costs and
punitive damages for the victims of
ABC Viaticals investment fraud.
We offer a " no recovery - no fee"
alternative to costly legal fees.
Please contact us today and learn how we can help.
Richard Sacks
