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.
The Business of Marriage and Divorce
It is estimated that 40% of all marriages end in divorce, with first marriages lasting for approximately 8 years. While divorce and marriage rates are on the decline many people are still getting married or divorce every year. In 2009, 3.5 per 1,000 people divorced and 6.8 per 1,000 got married therefore there is still money to be made servicing these two industries. Therefore the financial services industry has decided to join the likes of wedding planners, photographers and attorneys by offering products geared toward these lifestyle choices. The question remains if these products are necessary or a complete waste of money.
The Wedding
According to TheKnot.com, the average wedding costs almost $28,000. That’s a big bill to ask mom and dad to foot for one day. Rather than burden their parents or drain their emergency fund some couples have decided to finance the wedding of their dreams by taking out a wedding loan. Essentially a personal loan, wedding loans are available from banks as well as peer-to-peer lending with rates that range from 6.78% to 27.46% depending upon your credit score, loan amount and loan duration. Does this make financial sense? NO! Budget, save, sell some of your stuff or elope but don’t finance your wedding. The money you’re spending could be used as a down payment on a house or fund your retirement. The interest rates for unsecured money are worse than the ridiculous rates some credit card companies charge.
Planning to fail?
With the divorce rates so high and attorney fees that range from $250-$950 per hour many people are planning for the possibility of divorce. Most financial experts suggest setting aside at least 6 months of household income into an emergency fund to cover any unexpected financial expense. This is sound advice for anyone living in this day and age. However some couples are taking it a few steps further by drawing up cohabitation agreements. Similar to prenuptial agreements, these legal contracts dictate what happens to assets should the couple part ways. They even can dictate who pays for what, defines consequences for cheating and outlines property division. Non-married, cohabitating couples are using them as well. These agreements range from $800-$7,000 which is cheaper than the $10,000 an average divorce can cost.
Some insurance companies are selling divorce insurance to help pay for legal expenses if or when you divorce. The policy needs to be in place for 4 years before it can be cashed in and can be very costly. Most experts feel if you have a properly funded emergency fund this product is completely unnecessary.
What happens if there is a runaway groom or bride, the photographer is a no show or there is a rain delay on your wedding day? Falling in the category of coverage you can live without, wedding insurance covers the expenses should your wedding be canceled or a wedding day mishap occurs. Again if you have an emergency fund do you really need this type of coverage? In addition, one insurance company plans on introducing a policy that rewards couples for staying together. Save your money and have a nice dinner as your reward.
Illiquid Assets
Divorces can be messy and expensive. In this economy some couples are staying together because they can’t afford to divorce. Previously, I wrote about a service that lent money to divorcing individuals for legal fees in exchange for a percentage of the settlement they would receive. For some people, this was still not an option since they were not going to receive a big payout. For others, it just seemed pretty expensive compared to the competitive rates you can receive when you sell some of your future payments.
Many people don’t realize that they can sell illiquid assets such as annuities, structured settlements, life insurances policies, royalty payments, inheritance, cell tower leases as well as other periodic payments for a cash lump sum. The rates are better than most credit cards and bank loans. You don’t pay the money back and it has no affect on your credit. The money can be used to pay for a wedding, divorce, or even a home. Use the money the way you want to without accumulating debt.
Holiday Stress and Personal Injury Lawsuits
With the holiday season upon us, so begins the holiday stress. Normally the holidays are a joyous time where family and friends gather together to enjoy each other’s company over a meal or two. Unfortunately, when you’ve been injured there isn’t really much to celebrate if you’re not sure how you are going to pay your bills.
If you have been injured and an attorney is working on a cash settlement on your behalf you have options to help get your bills paid. You may be able to get some money now instead of waiting for your lawsuit to settle. By obtaining a cash advance on your pending legal settlement, you will not have to wait for your case to settle in order to get the money you need.
If you have been involved in a motor vehicle accident, work related injuries, medical malpractice or perhaps a slip and fall case, you should be able to get a cash advance on your pending legal settlement.
To learn more about Rescue Capital’s Cash Advance Program Call 1-866.688.3532 for a free, no-obligation quote.
Remember, if your case doesn’t settle you owe us nothing. If you already have a structured settlement annuity or a fixed annuity and could use your cash now --- We can purchase your payments for a cash lump sum.
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