Issuer’s telephone number, including area code: 254-751-7797
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Item 8.01. Other Events
As Life Partners Holdings, Inc. (“we”) previously disclosed, the Securities and Exchange Commission (“SEC”) has been investigating our life settlement business. We have cooperated in the SEC’s investigation and have provided information and testimony.
On May 9, 2011, we received a “Wells notice” from the staff of the SEC stating that the staff will recommend that the SEC bring a civil injunctive action against us and two of our directors and executive officers, Brian D. Pardo and R. Scott Peden, for possible violations of Section 17(a) of the Securities Act of 1933, Sections 10(b) and 13(a) of the Securities Exchange Act of 1934, and certain rules thereunder. We understand at present that the primary basis for the proposed civil action relates to our knowledge of and disclosures about the accuracy of the estimates of the life expectancies of settlors.
The Wells notice is neither a formal allegation nor a finding of wrongdoing. Upon receipt of a Wells notice, the recipient is afforded an opportunity to present its positions with respect to the staff’s recommendation before the SEC decides whether an enforcement action will be authorized. We intend to respond by setting forth our positions and explaining why we believe an enforcement action is not warranted. We cannot predict whether the SEC will accept our positions or follow the recommendations of the Staff and initiate an enforcement action.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
