On April 8, 2015, the Securities and Exchange Commission (SEC) charged Los Angeles-based Pacific West Capital Group Inc. and its owner Andrew B. Calhoun IV, of Beverly Hills, with fraud in the sale of "life settlement" investments. ( "Life settlements" are securities which are structured when a life insurance policy "matures" after the insured individual dies and the benefits are then paid. Life settlement investors purchase interests in a life insurance policy and receive a share of the death benefit.)
According to the SEC's complaint, allegedly since 2004, Pacific West and Andrew Calhoun, raised nearly $100 million from life settlement investors. Since 2012, Pacific West and Calhoun allegedly defrauded investors by using the proceeds from the sale of new life settlements to fund life settlement investments which were sold years earlier. This was not disclosed to the the investors at Pacific West and Calhoun and Pacific West made life settlement investments appear successful when Pacific West had used up their primary reserves to pay premiums on those policies. Pacific West and Calhoun were charged with violating the antifraud, securities registration, and broker-dealer registration provisions of the federal securities laws.
Also named as defendants are Ohio-based PWCG Trust, which held and serviced the insurance policies, and five sales agents of Pacific West: Brenda C. Barry of Issaquah, Wash., and her company BAK West, Andrew B. Calhoun Jr. of Anderson, S.C., Eric C. Cannon of Lakewood, Calif., and his company Century Point, and Michael W. Dotta and Caleb A. Moody, both of Los Angeles.
If you or a family member have become alleged victims of life settlement fraud, contact an insurance fraud attorney for a free consultation on how to recover your investment losses. To speak with an attorney, call 888-760-6552.
Soreide Law Group, PLLC, represents Insurance Fraud Victims in Federal Court, State Court and before the Financial Industry Regulatory Authority (“FINRA”).
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