Pacific West Capital accused of life settlement fraud

According to the SEC’s complaint, filed in U.S. District Court for the Central District of California, Pacific West and Mr. Calhoun made false and misleading statements about the risks of investing in life settlements, including the risk of investors having to make increased premium payments as insured individuals lived longer than Pacific West and Mr. Calhoun anticipated. Pacific West and Mr. Calhoun also allegedly misled investors about annual returns and falsely represented to investors that their investments had nothing to do with Pacific West’s efforts and fortunes.

The SEC’s complaint charged Pacific West and Mr. Calhoun with violating the antifraud, securities registration, and broker-dealer registration provisions of the federal securities laws. Also named as defendants were Ohio-based PWCG Trust, which held and serviced the insurance policies, and five sales agents of Pacific West: Brenda C. Barry of Issaquah, Washington, and her company BAK West; Andrew B. Calhoun Jr. of Anderson, South Carolina; Eric C. Cannon of Lakewood, California, and his company Century Point; and Michael W. Dotta and Caleb A. Moody, both of Los Angeles. 

PWCG Trust and the sales agents were charged with violating the securities registration provisions, and the sales agents also were charged with broker-dealer registration violations. The SEC’s complaint seeks permanent injunctions against all defendants and the return of allegedly ill-gotten gains with interest and penalties from Pacific West, Mr. Calhoun, and the sales agents.