A state-appointed receiver has seized the accounts of National Life Settlements L.L.C.
The Texas State Securities Board announced the seizure, charging that the company sold more than $20 million in fraudulent life insurance settlement contracts to retired state employees, retired teachers and other Texas investors.
State District Court Judge Suzanne Covington of Travis County appointed the receiver at the request of Texas Securities Commissioner Denise Voigt Crawford and Texas Attorney General Greg Abbott.
The agencies allege that the NLS investments were fraudulent and sold by unregistered brokers and agents.
In court documents, the Texas State Securities Board says investors deposited about $20 million with NLS from November 2006 through the end of 2008. About $2.7 million of the total came from the retirement accounts of former teachers and state employees, according to the court papers.
The board says NLS advertised the investments and sold them in Houston, central Texas and other areas.