A Texas state court judge has granted a request by the Texas State Securities Board to name a receiver for a firm accused of misconduct in connection with sales of securities linked to insurance death benefits.
Judge Stephen Yelenosky, a Travis County, Texas, district court judge, has approved a motion by the Texas SSB to appoint a receiver for Retirement Value L.L.C., New Braunfels, Texas.
SSB officials say Retirement Value sold investors unregistered securities backed by life settlements and failed to disclose relevant facts about the investments and about the principals.
Retirement Value collected $65 million from about 800 investors between April 2009 and February 2010, Texas officials say in court documents.
A notice of hearing filed by Texas Securities Commissioner Denise Voigt Crawford is pending in the Texas State Office of Administrative Hearings.
Retirement Value representatives could not immediately be reached for comment.