A federal court in Miami has sided with investors who put money in a troubled viatical settlement provider.[@@]
U.S. District Judge Federico Moreno has ruled that the investors, not the receiver, of Mutual Benefits Corp., Fort Lauderdale, Fla., should control liquidation of the $1.5 billion in life insurance policies in the Mutual Benefit investment portfolio.
The U.S. Securities and Exchange sued Mutual Benefit in connection with allegations of securities fraud in May 2004 and persuaded Moreno to appoint a receiver for Mutual Benefit. The receiver wanted to sell Mutual Benefit's policies, but Moreno agreed with the investors that the investors ought to control disposition of the life insurance policies.
Lawyers at Lord, Bissell & Brook L.L.P., Atlanta, a firm that represents an investment fund that invested $35 million in Mutual Benefit, spoke for the investors in the proceedings.
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