Life Settlement and Viatical Fraud

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Introduction to Life Settlement and Viatical Fraud

Life settlements and viatical settlements can provide financial relief to individuals who need immediate access to cash by selling their life insurance policies. While these transactions can be legitimate and beneficial, they are also vulnerable to fraud.

Life settlement or viatical fraud occurs when unscrupulous brokers, agents, or third parties deceive policyholders or investors for financial gain. This type of fraud can lead to significant financial losses and undermine the security that life insurance policies are meant to provide.

At Girard Bengali, APC, our experienced attorneys are committed to representing victims of life settlement and viatical fraud. We understand the intricate nature of these schemes and are dedicated to helping clients recover their losses. If you suspect that you have been a victim of life settlement or viatical fraud, it is crucial to seek legal counsel immediately.

Understanding Life Settlement and Viatical Fraud

A life settlement involves the sale of a life insurance policy by the policyholder to a third party for a lump sum that is greater than the cash surrender value but less than the death benefit.

A viatical settlement is similar, but it typically involves policyholders who are terminally ill and need immediate funds for medical or other expenses. While these transactions can offer financial benefits, they are also fertile ground for fraud.

Common forms of life settlement or viatical fraud include:

Misrepresentation of Policy Value

Brokers or agents may intentionally undervalue the life insurance policy, convincing the policyholder to sell for far less than the policy’s actual worth. This allows the broker to profit at the expense of the seller.

Undisclosed Fees and Commissions
Fraudulent brokers may fail to disclose the full extent of fees, commissions, or other costs associated with the transaction. This can significantly reduce the amount of money the policyholder receives from the sale.
Fake or Nonexistent Investors
In some cases, fraudsters may claim to have secured a buyer for the policy when, in reality, no such investor exists. The policyholder may be left without payment after transferring ownership of the policy.
Fraudulent Investment Opportunities
Investors may be lured into purchasing life settlements or viatical settlements as investment opportunities, only to find that the policies are worthless or do not exist. This type of fraud can lead to substantial financial losses for the investor.
Policy Stacking
Fraudsters may encourage policyholders to purchase multiple life insurance policies with the intent to sell them through viatical or life settlements. This practice, known as policy stacking, can lead to legal and financial complications for the policyholder.

The Impact of Life Settlement and Viatical Fraud

The consequences of life settlement or viatical fraud can be devastating for both policyholders and investors. For policyholders, fraud can result in the loss of a valuable asset that was meant to provide financial security for their loved ones. For investors, it can lead to significant financial losses and legal entanglements.

At Girard Bengali, APC, our attorneys have extensive experience in handling life settlement and viatical fraud cases. We will thoroughly investigate your case, identify any fraudulent activity, and pursue all legal avenues to recover your losses. Whether you are a policyholder who has been misled or an investor who has been defrauded, we are here to protect your rights and secure the compensation you deserve.

Contact Our Experienced Fraud Attorneys

If you believe that you have been a victim of life settlement or viatical fraud, do not wait to seek legal advice. The experienced attorneys at Girard Bengali, APC, are here to help you navigate the legal process and recover your losses. To arrange a confidential consultation, please call 866-778-6821 or contact us online. We are ready to fight for your financial future.