NU Online News Service, May 6, 2004, 6:17 p.m. EDT – Federal securities regulators and Florida insurance regulators have shut down the largest U.S. viatical settlement company, Mutual Benefits Corp., Fort Lauderdale, Fla.[@@]
The U.S. Securities and Exchange Commission has seized Mutual Benefits’ files and placed the company in federal receivership, according to the Florida Office of Insurance Regulation.
State insurance regulators have suspended Mutual Benefits’ license to act as a viatical settlement provider.
State regulators also have filed a complaint in the U.S. District Court in Miami that accuses the company of misrepresenting the nature of the policies backing its contracts with investors. The complaint charges Mutual Benefits with racketeering and 15 counts of investor fraud.