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Texas Court Enjoins Settlement Firm

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A Texas district judge has ordered a temporary injunction against National Life Settlements L.L.C. and placed the company under the permanent receivership of Janet Mortenson, an attorney in Houston.

Judge Scott Jenkins, a judge in the Travis County, Texas, state district court, issued a preliminary order Feb. 13 naming Mortenson temporary receiver and allowing the state to seize about $20 million in bank accounts of National Life Settlements, Houston.

The court acted on the request of Texas Securities Commissioner Denise Voigt Crawford and Texas Attorney General Greg Abbott, which charged National Life Settlements with selling fraudulent life settlements through unregistered brokers and agents.

The injunction prohibits the firm and its officers from selling or transferring any assets of the business or from deleting or moving any of its records.

The court plans to hold a hearing April 28 on regulators’ request for a permanent injunction.