The Idaho Department of Finance is accusing 4 companies of selling fraudulent life settlement investments.
The department has filed a complaint in a state court in Ada County, Idahoa, charging 3 individuals in connection with allegations that they sold fraudulent life settlement investments to more than 40 Idaho residents.
The defendants named in the suit are Jamison Potter, Adam Bentley, Christopher Driscoll, North American Capital Trust L.L.C.; North American Capital Group L.L.C.; Pacific Partners L.L.C.; and Silverstone Equity Group L.L.C.
Idaho officials allege that the defendants operated in Nampa, Idahoa, and in Eagle, Idaho.
The defendants raised about $5 million after offering monthly rates of return of 10%, with the proceeds being forwarded to out-of-state enterprises, Idaho officials allege.
Idaho has charged the defendants with violating the registration and anti-fraud provisions of the Idaho Securities Act.
Idaho Financial officials allege in their complaint that the defendants misrepresented that their investment proceeds would be used to buy insurance or life settlement policies.
The defendants seemed to give investors a chance to review the policies for acceptable terms before purchase, officials allege.
After the investors approved the deals, the insurance company were supposed to provide investors with a beneficiary registration form, and the investors were supposed to receive legal right of ownership in the form of a financial guarantee or death benefit, officials allege.
But the defendants never bought life insurance policies, Idaho officials allege.
Instead, the defendants forwarded investors’ funds to out-of-state promoters, who in turn sent the money to Panama, officials allege.
In addition to restitution and civil penalties, Idaho is seeking a court order permanently enjoining the defendants from additional violations of the Securities Act and asking for restrictions on their future business activities.
The defendants could not immediately be reached for comment.