Life Partners Sues Charles Schwab Subsidiary for Counterfeiting
WACO, Texas--(BUSINESS WIRE)--
Life Partners Holdings, Inc. (Nasdaq GS: LPHI) announced today
that it has filed suit against optionsXpress, Inc., a subsidiary of The
Charles Schwab Corporation (NYSE: SCHW), the company's Chief Financial
Officer, and one of the company's largest customers for issuing and
selling counterfeit shares of Life Partners Holdings stock.
The lawsuit, filed in Illinois by California attorney Gary Aguirre,
whose practice focuses on market manipulation, asks the Court for an
order preventing the Schwab subsidiary from creating and selling shares
of Life Partners Holdings' stock which were not authorized by the
company. The action also asks the Court for protection from securities
fraud, deceptive business practices and civil conspiracy arising from
the unlawful issuance of the counterfeit shares.
Under the law of Illinois, Texas, and every other state, a company has
the exclusive right to issue and sell its own stock. The creation and
sale of counterfeit or "phantom" stock by brokers and their customers
violates these laws.
The lawsuit is based on findings in an administrative proceeding by the
U.S. Securities and Exchange Commission against optionsXpress and the
other defendants which concluded that optionsXpress, its chief financial
officer, and one of its biggest customers committed securities fraud by
engaging in the sales of hundreds of millions of dollars in
counterfeit-phantom stock passed off as the genuine stock of 25 public
companies, including almost $5.5 million of counterfeit-phantom stock of
Life Partners Holdings, Inc.
Life Partners Holdings CEO Brian Pardo commented, "This case isn't about
money. It's about confidence in the market. It's about making sure that,
in the future, shareholders can be sure that they are purchasing
legitimate, authorized stock. Individual investors need to know that the
stock they are buying is real and not phantom stock cooked up by Wall
Street insiders. Without a stock certificate, we've seen how easy it is
for Wall Street to pass off counterfeit stock in your account as
legitimate and we want to put a stop to it."
The company is continuing to investigate other persons and entities who
may have engaged in counterfeiting shares of Life Partners Holdings, Inc.
The lawsuit is entitled Life Partners Holdings, Inc. et al. v.
optionsXpress, Inc., Jonathan I. Feldman and Thomas E. Stern, Case
No. 14CH6428, Circuit Court of Cook County, Illinois, County
Department, Chancery Division. A complete copy of the complaint is
available at: http://www.lphi.com/doc/Release_20140415.pdf
The SEC decision, In the Matter of optionsXpress, Inc., et al. is
available on the SEC website at http://www.sec.gov/alj/aljdec/2013/id490bpm.pdf.
Life Partners is the world's oldest and one of the most active
companies in the United States engaged in the secondary market for life
insurance, commonly called "life settlements". Since its incorporation
in 1991, Life Partners has completed over 156,000 transactions for its
worldwide client base of over 30,000 high net worth individuals and
institutions in connection with the purchase of over 6,500 policies
totaling approximately $3.2 billion in face value.
Visit our website at: www.lphi.com.
Safe Harbor - This press release contains certain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Prospective investors are cautioned that any such
forward-looking statements are not guarantees of future performance and
involve risks and uncertainties, and that actual results may differ
materially from those projected in the forward-looking statements as a
result of various factors. The statements in this news release that are
not historical statements, including statements regarding the basis,
outcome or duration of the legal proceeding, are forward-looking
statements within the meaning of the federal securities laws. These
statements are subject to numerous risks and uncertainties, many of
which are beyond our control, that could cause actual results to differ
materially from such statements. For information concerning these risks
and uncertainties, see our most recent Form 10-K. We disclaim any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise, except as may be required by law.
Life Partners Holdings, Inc.
Source: Life Partners Holdings, Inc
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