ALABAMA SECURITIES
COMMISSION
770
WASHINGTON AVE, SUITE 570
MONTGOMERY,
ALABAMA 36130-4700
TELEPHONE
(334) 242-2984
1-800-222-1253
FAX
(334) 242-0240
E-MAIL asc@asc.state.al.us
FOR IMMEDIATE RELEASE
Investor Protection Alert
Viatical
& Elderly Settlement Providers, LLC "VESPERS"
MONTGOMERY, ALABAMA (May 2, 2001) Joseph P. Borg, Director of the
Alabama Securities Commission, issued a Cease and Desist Order against Viatical & Elderly Settlement Providers, LLC
(VESPERS) Washington, D.C., to stop
conducting business in the state of Alabama.
The Alabama Securities
Commission (ASC) received information that VESPERS is engaged in the illegal
offer and sale of investment contracts involving fractionalized viatical settlement contracts in Alabama. Mr. Borg said, "VESPERS is not licensed
in the state of Alabama to sell this type security. They have solicited one or more independent insurance
agents to sell interests in viaticals issued by
VESPERS with promises of low risk and high returns of 28-70 percent on two to
five year investments and offered insurance agents a 10% commission."
The viatical business makes
money by purchasing life insurance policies from people who have a terminal
illness. For instance, if you had a
$200,000 life insurance policy and were diagnosed as terminally ill, a group
might buy your policy for $125,000-$150,000.
Buying interests in viatical contracts can be
risky. With advances in medicine and
medical technology people who were once diagnosed with short life spans may
live much longer. Also, the premiums on
life insurance policies supporting investments must be paid so the policies
will remain in effect until the insured person dies.
- more -
The Director of the Alabama Securities Commission
cautions potential investors to thoroughly check out any investment
opportunity. For inquiries regarding
securities
dealers,
to report suspected fraud, or obtain consumer information call
1-800-222-1253.
There is a vast amount of free investment information
on the Internet, the best starting point is at the NASAA website (http://www.nasaa.org/),
take the main menu to Investor Education and enter into the Investor Tips
section. Numerous articles are provided
at this website for free or you may call or write the Alabama Securities
Commission - Division of Training and Public Affairs. Phone 1-800-222-1253 or send your request to
the Alabama Securities Commission, Training and Public Affairs, 770 Washington
Ave., Suite 570, Montgomery, Alabama 36130-4700.
###
FOR
ADDITIONAL INFORMATION CONTACT:
Joseph P. Borg
Director
Alabama Securities Commission
(334) 242-2984
Daniel G. Lord
Training and Public Affairs
Alabama Securities Commission
(334) 242-2984