Life settlements are not securities when only a single investor is involved, according to U.S. District Judge Michael Mason.
Mason made that interpretation in a ruling on a case filed in the U.S. District Court in Chicago.
Mason dismissed a claim by John Zang of Lexington, Mich.
Zang said Alliance Financial Services of Illinois had offered to use a package of life insurance settlements to finance his purchase of a business.
The deal fell through. Zang says Alliance declined to refund his $37,500 down payment. Zang sued, charging the firm with misstatements involving the sale of securities, according to court documents.