Imperial Holdings has become the target of a federal criminal investigation after insurance regulators caught wind of allegations concerning the life insurance branch of the company – Imperial Finance and Trading. The investigation applies only to the company’s life insurance premium finance business and no other aspect of the company. A multitude of class action lawsuits have been filed against Imperial Holdings since September of last year. Many of these lawsuits are coming from shareholders who claim that the company is committing fraud.
Federal regulators seized control of the company’s offices in Boca Raton, Florida, on Monday and began combing through official records. Regulators have already found some questionable content within these documents, especially information pertaining to how the company manages its life insurance premiums and beneficiary payouts. Imperial Holdings has taken exception to the accusations and subsequent investigation. The company claims that regulators will find a wealth of incriminating evidence only because context is not being considered.
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Regulators have yet to release detailed information regarding their findings thus far as the investigation is still ongoing. If Imperial Holdings is found guilty of fraud, regulators may take action against the company and force it to discontinue its life insurance services. In this case, other life insurance companies will be able to take control of the policies left behind my Imperial Holdings. Regulators expect to reach a conclusion to the investigation within the coming months.