TX Bars Adviser For Fraudulent Sales

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TX Bars Adviser For Fraudulent Sales

James Poe, a Forth Worth, Texas-based adviser and president of Jim Poe & Associates, Inc. has been barred by Texas state securities regulators from acting as an investment adviser representative and broker in the state for fraudulent practices pertaining to the sale of life settlements.

Poe got undisclosed payments from another firm he owned, International Alternatives PR, which consulted on selection of the life insurance policies and represented fraudulent business activity, said a March 18 order from the Texas State Securities Board. The board also claimed Poe got ten percent commissions for the product sales from 2011 to 2015, despite the fact that he was not registered as an agent of the firm, a violations of the state’s securities laws.

With regard to life settlements, investors typically purchase an undesired life insurance policy, continuing to pay the seller’s policy premiums and in the end collecting the death benefit when the insured person dies. The seller receives an amount greater than the policy’s cash surrender value but less than the net death benefit. These investments have their risks, including that the individual lives longer than expected. This situations costs investors more money through premiums.

Between July 2011 and August 2015, Poe urged particular people to purchase life settlements, issued by SRP-LS200, a firm controlled by Poe. He promised investors a 75% return on their investment.  Investor funds were used to buy the life insurance policies, pay premiums on the policies and pay “all associated costs,” including a 10% commission paid to Poe and undisclosed payments in the amount of 20% of investor funds to another firm owned by Poe for consultation on the identification and selection of the life insurance policies, according to Texas regulators.

Failing to disclosing the 20% fee paid to Poe’s other firm and Poe’s ownership of that firm represented “intentional failures to disclose material facts to the [life settlement] investors and constitute fraudulent business practices,” according to the order.

If you or someone you know has lost money as a result of an investment or Ponzi scheme, please contact Richard Frankowski at 888-741-7503 to discuss your potential legal remedies or complete the contact form.

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