Judge allows release of funds to retirees

AP News
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Posted: Dec 16, 2009 10:39 AM

The Texas securities commissioner says defrauded investors in Houston-based National Life Settlements will get $19.8 million, or 69 percent of the amount they invested in the company.

State District Judge Stephen Yelenosky approved release of funds to about 320 investors at a hearing in Austin on Tuesday. Many investors were teachers and state agency retirees who turned over retirement funds to the company. It sold promissory notes that were purportedly backed by life insurance policies.

Houston lawyer Janet Mortenson is the court-appointed receiver in control of NLS. She says checks to investors will be mailed on Thursday.

Securities Commission Denise Voigt Crawford announced the hearing results. She says National Life Settlements sold about $30 million in unregistered investments, mostly through insurance agents.