On April 8, 2015 the Securities and Exchange Commission (“SEC”) filed a complaint against Pacific West Capital Group, Inc., Andrew B. Calhoun IV, Brenda Christine Barry, Andrew B. Calhoun Jr., Eric Christopher Cannon, Michael Wayne Dotta and Caleb Austin Moody. The SEC complaint alleges that Pacific West Capital Group and its owners committed fraud in the sale “life settlement” investments. A life settlement is the sale of an existing life insurance policy to a third party for more than its cash surrender value, but less than its net death benefit.
The SEC alleged that since 2004 Pacific West and Calhoun raised approximately $100 million from life settlement investors. Furthermore, the SEC alleges that in 2012 Pacific West and Calhoun defrauded investors by using the proceeds from the sales of new life settlements to fund life settlement investments sold years earlier. However, this was not disclosed to the investors at Pacific West. The SEC complaint alleges that Pacific West and Calhoun made life settlement investments appear successful when in reality the primary reserves were used to pay premiums on the policies. As such, the SEC has alleged that Pacific West and Calhoun violated the antifraud, securities registration and broker-dealer registration provisions of the federal securities laws. (See Complaint Case No. 2:15-cv-02563 United States District Court Central District of California.)
If you have suffered investment losses as a result of your broker’s or brokerage firm’s misconduct, contact the Hanley Law to discuss your legal options. The Hanley Law is dedicated to helping investors who have been victims of securities fraud. If you have lost money as a result of securities fraud, you may be entitled to recover your investment losses. Contact our office toll free at (239) 649-0050 for a free initial consultation.