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Shepherds Funds, Mutual Benefits Corp - another debacle for investors ... |
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Sunday, 08 May 2005 |
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You may remember we broke this story in our Globaleye Bulletin Service (GBS) some months ago and now the painful conclusion to this episode is drawing near. The receiver for MBC recommended MBC should be wound up by the end of the year, predicting substantial crystallised losses for investors. The Shepherds' fund was 85 per cent invested in MBC policies.
If you have invested in such investments, know of friends who have whether directly or through collective investment vehicles, then you should read on in order to get a feel for what is on the horizon. Agents and Financial Advisors who sold such investments are running for cover (some of whom are in Dubai) in a bid to avoid repercussions in the ensuing fall out of this fraud. Many sold such investments even though they knew MBC was being investigated as far back as 2000, so many are redeeming and paying back commissions.
If you did not know about these investments or were a possible casualty and would like to know the link between squid, cocaine and the insurance industry, then
Traded Life Policies or Viatical Settlements were sold predominately through financial advisors (not us I hasten to add!) on the pretext of superior returns with little or no risk. However, the nature of these investments made them prone to corruption and fraud with them having no specific regulatory framework in which to operate. Couple the fraudulent activities within these forms of investment, the connection to drug activities is a further blow to investors who are unlikely to see their money due to confiscation by the US authorities.
If you are unsure of your options and perhaps you have recently invested, then you can Contact us for some guidance. We have managed in the past to mitigate investors exposure in certain circumstance so let us know if you need help or guidance in your particular case.
There are number of websites predicting/detailing the demise of the TLP business and to avoid making this article too long we have summarised a few below ...(the following links will open in a new window)
Florida State Court Ruling regarding the fraud
Shepherds closes its office and is no longer trading
Chicago Tribune article on the haul of squid with the white chalky powder
IFA’s to carry liability
MBC Fraud website – historical background
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