Washington D.C., May 11, 2015 — The Securities and Exchange Commission today charged a self-described retirement planning firm and its principals with falsely telling customers that interests in life settlements they offered and sold were “guaranteed,” “safe as CDs,” and “federally insured.”
The SEC also alleges that they used a bogus “net worth calculator” that improperly qualified some prospective investors for purchases by including income that investors had not received, such as future pension and Social Security benefits.
The SEC charges were filed in the U.S. District Court for the Northern District of Texas against Novers Financial and its principals Christopher A. Novinger and Brady J. Speers, who live in Mansfield, Texas, and host a financial radio show. The SEC’s complaint alleges that from 2012 to 2014, they sold approximately $4.3 million in life settlement interests to 26 investors.
“We allege that Novinger and Speers described speculative investments as safe and secure and were willing to manipulate investors’ financial information to make a sale,” said David Peavler, Associate Director of the SEC’s Fort Worth Regional Office. “No matter what a salesperson tells you, interests in life settlements are never guaranteed, risk-free, or federally insured.”