The Securities and Exchange Commission is charging Novus Financial and principals Brady J. Speers and Christopher A. Novinger with making false claims about life settlements. The regulator filed its claim in the U.S. District Court for the Northern District of Texas.
According to the SEC’s complaint, from ’12 – ’14, the retirement planning firm and its principals sold about $4.3 million in life settlement interests to 26 investors. Speers and Novinger are accused of describing the investments as secure and safe. Both were purportedly willing to manipulate the financial data of investors to make the sale happen.
The Commission also claims that the firm, Novinger, and Speers used a net worth calculator that was bogus. This allowed a number of prospective investors to improperly qualify to buy the interests. In one instance, the non-homestead assets of one couple were falsely inflated to $1.5 million from $263K because of the calculator.
The investors were also supposedly told that the interests were safe like CDs, guaranteed, and federally insured. However, as David Peavler, SEC Associate Director of the agency’s Forth Worth Regional Office, pointed out, life settlements are never free of risk, guaranteed, or federally insured.
The SEC also is charging Speers Financial Group LLC and ICAN Investment Group for acting as unregistered brokerage firms. The Commission wants injunctive relief, financial penalties, and the return of ill-gotten gains plus interest.
Our Texas securities fraud law firm is here to help investors recoup their losses. If you sustained losses from life settlement fraud that you suspect may be a result of broker negligence or wrongdoing, please contact Shepherd Smith Edwards and Kantas, LTD LLP today.
Read the complaint (PDF)
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