Conestoga Life Settlements Services, Conestoga International, Conestoga Trust and Conestoga Member Services were all named as related entities in a Wisconsin Department of Financial Institutions Division of Securities Cease and Desist Order involving insurance agents Jace McDonald, Peter Viater and Derek Anderson.
The Order dated May 15, 2015 made findings of fact that Conestoga Life Settlments had IC agreements with Jace McDonald, Peter Viater and Derek Anderson whereby they were authorized to sell fractional interests in life insurance policies to Wisconsin residents.
Among the findings were that Jace McDonald put on seminars where he made misrepresentations and misleading statements concerning the Conestoga Life Settlements by comparing them to bank CDs and other statements implying the investors were guaranteed a return on their investments. These statements were contrary to the risk disclosures in the PPM, which stated that the investments were speculative in nature and did not provide any guarantee.
As with any fractionalized life settlement or viatical, the risk is that the insured outlives the premiums set aside by the sponsor, which results in the investors being obligated to pay future premiums to keep the policy in force. When some investors refuse, the remaining investors face higher annual premium payments. Investors are left with the question of “whether to throw good money after bad,” to keep the policy in force for another year.
Jace McDonald, Peter Viater and Derek Anderson were all found to have offered the Conestoga Life Settlements to Wisconsin investors based on misrepresentations, and via a general offering of securities, a violation of Regulation D as well as Wisconsin statute section 551.402, selling securities without a proper license.
The Law Office of David Liebrader practices exclusively in the field of investment loss recovery. For the past 24 years, we have dedicated our law practice to assisting investors who have been victims of investment fraud via fraudulent and unsuitable investment transactions. During that time we have recovered money for over one thousand individuals, pension plans, trusts and companies. The recoveries we have obtained via judgments, awards and settlements on behalf of our clients exceed $40,000,000. In May, 2017 we successfully obtained an award for a client who was a victim of the Life Partners life settlement scam against two former FINRA licensed brokers.
If you suspect that you have been the victim of investment fraud, or had a financial advisor recommend unsuitable investments to you, call us today for a free, confidential consultation at (702) 380-3131.