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Tramont Guerra Nunez, PA Comments on Recent SEC Filings Issued by Life Partners Holdings, Inc.

Coral Gables, Florida (PRWEB) July 6, 2011 – The Securities Law Firm of Tramont Guerra & Nunez, P.A. (TGN) comments on the recent SEC Filings issued by Life Partners Holdings, Inc. On June 9, 2011, Life Partners Holdings reported in a SEC Form 8-K filing that it had received a resignation letter from the company’s independent auditor, Ernst & Young, LLP. Life Partners Holdings explained in the SEC filing, "Ernst & Young believes that revenue should be recognized no earlier than the final losing of escrowed funds with settlor. Ernst & Young also stated that some portion of our fee revenue should be allocated and deferred based [on] the Company’s practice of making premium advances." The filing disclosed the receipt of an amended "Wells Notice" from the SEC expanding the scope of the recommendation for civil action. According to Life Partners Holdings, "We understand that the expanded Wells Notice also includes allegations about the disclosures regarding and the propriety of certain of our accounting policies and practices, including revenue recognition, the impairment of life settlements held by us for investment, and the accrual of reserves for premium advances that we might make on certain policies." In light of these developments, TGN urges investors who invested in Life Partners Holdings stock and life settlement contracts, recommended by full-service brokerage firms, to consider what recourse is available to recover their investment losses.

According to TGN, many financial advisors recommended investments in Life Partners Holdings stock and life settlements as suitable investments for conservative investors. The Financial Industry Regulatory Authority, (FINRA) is a self regulating organization with sales practice rules and regulations that govern the securities industry's conduct and safeguard the investing public. According to TGN, full-service brokerage firms are obligated to give, and investors are entitled to rely upon, brokerage firms for competent, suitable investment advice for investments made in customer accounts. The failure to supervise brokerage account activity, unsuitable investment advice or fraudulent misrepresentations and omission of material facts are causes of action that may be available to investors in an individual securities arbitration claim filed with FINRA.

The Securities Law Firm of Tramont Guerra & Nunez, PA, is a nationally recognized, Martindale Hubbell "AV" rated securities law firm. To request a confidential consultation from a TGN attorney to determine whether you have a viable individual securities arbitration claim for investment losses that exceed $250,000 from a full service brokerage account, contact us on our website. To speak directly with an attorney, call (800) 578-0137 and ask for David Chacin, Esquire.

Contact:
David Chacin, Esquire
255 Alhambra Circle, Suite 1150
Coral Gables, Florida 33134
(800) 578-0137

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