Executives of National Life Settlements LLC of Houston Indicted
In a Press Release, the Texas State Securities Board reported that Howard Glenn Judah, Jr. and Gregory F. Jablonski, executives for Houston based National Life Settlements LLC, have been indicted for securities fraud and the sale of unregistered securities by a Harris county grand jury. Bail has been set at $1 million each and both men face up to 99 years in prison.
The indictments stemmed from an undercover investigation into National Life Settlements’ claims that it was selling safe, secure investments that would pay investors a steady return of 10% a year. The $30 million worth of unregistered investments were promissory notes backed by the death benefits from interests in life insurance policies it acquired. The firm apparently solicited money from retired state employees and retired public educators, resulting in millions being rolled out of retirement plans and placed with NLS. Mr. Judah is reportedly a three time convicted felon with a long history of investment fraud, according to the release, and Mr. Jablonski, of Castle Rock, Colorado, was a principal of an Internet networking company that went bankrupt in 2007.
Investors were paid $19.8 million in 2009, or 69% of their money back, as a result of the State Securities Board’s lawsuit.