A&O Life Gets $11 Million from Costa Rican Bond Co.
It's being reported that the A&O bankruptcy trustee settled with Provident Capital for $11 million:
The bankrupt A&O life settlement funds will receive $11 million under a legal settlement with Costa Rican bond insurer Provident Capital Indemnity.
About 720 investors and creditors are owed about $92 million from seven A&O life settlement funds that filed for Chapter 11 bankruptcy. Federal authorities and Texas securities regulators are investigating allegations of fraud on the part of A&O's principals, Marwil said. He said 23 life insurance policies held by A&O funds remain active.
Many of the policies were supposed to be insured by Provident Capital. Provident is not authorized to write insurance in the U.S., the Securities and Exchange Commission said in an unrelated case. Texas insurance and securities regulators have issued cease-and-desist orders against Provident.
The Provident bonds were to pay the face value of a policy in exchange for transfer of the policy itself if the insured didn't die by a certain date.
That's $11 million more than I thought they would get out of Provident.
Here are my prior posts on A&O.
