Promoters Of Death Benefits Fraud Sentenced To 10 Years
Judah, who is 82 years old, was the CEO of
The State Securities Board investigated the cases, which were prosecuted by the
National Life Settlements falsely promised investors that its investments would pay a steady return of 8% to 10% a year through promissory notes backed by death benefits. The company solicited money from retired and active state employees and teachers; millions of dollars were rolled out of retirement plans and into NLS investments.
A State Securities Board undercover investigation led to a civil action that forced NLS into receivership in 2009. Investors received 69% of their money back as a result of the receivership proceedings. The investigation led to the indictments against Judah (http://www.ssb.state.tx.us/Enforcement/legalactions/Judah.pdf) and Jablonski (http://www.ssb.state.tx.us/Enforcement/legalactions/Jabonski.pdf).
Before forming NLS, Judah, of
National Life Settlements was able to ramp up operations quickly by using insurance agents to sell its products. Evidence in the civil case against NLS showed that the company paid more than
Judah and Jablonski failed to acquire the life insurance policies needed to pay investors. The pair also falsely told investors that NLS was a large, national provider of life settlements and that NLS had received billions of dollars from the Federal Reserve.
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