Silver Law Group is investigating claims against a pair of self-described retirement planners who are alleged to have falsely promoted to customers the safety and profitability of interest in life settlements.
These types of alternative investments which promise substantial income without the risk of the stock market have been the subject of many securities arbitration claims in recent years.
According to charges filed by the Securities and Exchange Commission (SEC), Novers Financial and its principals, Christopher A. Novinger and Brady J Speers, falsely told customers that the investment opportunities they offered and sold in life settlements were “guaranteed,” “as safe as CDs,” and “federally insured.”
The SEC has further alleged that Novinger and Speers – who live in Mansfield, Texas and host a financial radio show – used a bogus “net worth calculator” that improperly qualified some prospective investors for purchases by factoring in future income to artificially inflate the client’s assets and allow them to invest in the life settlements, which typically can only be sold to investors who meet certain income or net worth levels.
“No matter what a salesperson tells you, interests in life settlements are never guaranteed, risk-free, or federally insured,” says David Peavler, Associate Director of the SEC’s Fort Worth Regional Office. Over the last several years, stockbrokers and other advisors have touted many alternative investment and private placements with promises of high income or preservation of capital. However, these investment products frequently pay high commissions to the brokers without delivering the promised returns.
Along with Novers Financial and Messrs. Novinger and Speers, the SEC has charged ICAN Investment Group LLC and Speers Financial Group LLC for acting as unregistered broker-dealers. The SEC is seeking injunctive relief, return of allegedly ill-gotten gains with interest, and financial penalties.
