Texas State Securities Board

April 2, 2025 – Last Friday, Travis County State District Judge, Maya Guerra Gamble, ruled in favor of a motion to distribute more than $4.5 million to investors in Retirement Value, LLC (RV). The motion [ [link removed] ] was filed on March 4, 2025, by Michael D. Napoli, counsel to the court-appointed receiver in control of the company—Eduardo S. Espinosa with Akerman, LLP. The Honorable Judge Gamble entered the distribution order [ [link removed] ] on March 28, 2025.

In 2010, the Texas State Securities Board and Texas Attorney General’s Office acted to shut down Retirement Value, LLC, a New Braunfels life-settlement investment company. The state accused the company of securities fraud and deceptive practices in the sale of life-settlement investments [ [link removed] ]. For ten months in 2009 and 2010, the company collected $77 million from investors. The investments were based on the proceeds from the death benefits of people who owned life insurance policies that were purchased by Retirement Value.

Retirement Value, through a firm called Midwest Medical Review LLC, significantly underestimated the life expectancies of the people whose policies they purchased and failed to reserve enough money to pay premiums on the policies it acquired. As such, investors were forced to pay the premiums on the policies—shrinking their return on investment in the death benefits they purchased.

Previously, Napoli and Espinosa had recommended that investors in the company receive $7.7 million in initial payments [ [link removed] ]. And since then, another $3.3 million has been distributed. Making the grand total of distributions, $15.5 million. $15.5 million back in the hands of Texas investors that were defrauded by Retirement Value.

The State Securities Board appreciates the impressive, long running, and diligent work of Espinosa and Napoli in this case.

“The hard work and quick action of our staff in coordination with the Attorney General’s office was imperative in stopping the harm to investors back in 2010 through emergency action authority under the Texas Securities Act, search warrants, and a civil action for the appointment of a receiver to marshal assets for the benefit of Texans. We are thrilled to see more money going back to investors,” said Texas State Securities Commissioner, Travis J. Iles. “We appreciate the continued partnership with the receivership team and their good work in getting recompense for our investors,” Iles said. “Any day we get money back in the hands of harmed Texas investors is a good day.”

For additional information on the RV receivership - [link removed].

Caselaw on life settlement investments and “investment contracts” under Texas securities law is found in the seminal Supreme Court of Texas case, "Life Partners, Inc. v. Arnold - "[link removed].




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