Imperial Holdings Announces Resolution to Federal Probe
BOCA RATON, Fla.-- Imperial Holdings, Inc. (NYSE: IFT) announced today that they entered into a Non-Prosecution Agreement with the U.S. Attorney’s Office for the District of New Hampshire (“USAO”) relating to investigation into Imperial’s premium finance business.
Under the terms of the agreement the USAO has agreed not to prosecute Imperial for any crimes in regards to the misrepresentations on life insurance applications. In addition, they agreed not to prosecute Imperial for any potential securities fraud claims related to its premium finance business.
According to the company’s press release,” Imperial acknowledged that, in connection with a portion of its retail operation that began in December 2006 and was discontinued in January 2009, in certain circumstances where Imperial employees were also licensed life insurance agents who wrote the underlying insurance policies, the Company facilitated and/or made misrepresentations regarding premium financing on life insurance applications for elderly individuals and failed to take appropriate precautions to prevent other misrepresentations that may have been made on life insurance applications by employees, prospective insureds and external agents and brokers. “
As a result Imperial of the agreement Imperial will pay a penalty of $8 million. The agreement does not resolve the investigation of the company by the Securities and Exchange Commission. In addition, the shareholder lawsuits stemming from when the stock plunge after the FBI raid still continue.
Imperial also announced today that it has terminated the employment of President and COO, Jonathan Neuman. Mr. Neuman had been on a leave of absence from his position since January 30, 2012 has stepped down from the Imperial’s board of directors and is no longer an employee.
Imperial’s stock rose 32% today after the announcement. Chairman and Chief Executive Anthony Mitchell stated that the company plans to focus strictly on traditional life settlements and structured settlements.
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