FORT WORTH (AP) — Regulators have accused a Fort Worth-area financial firm that advertises on the radio of falsely saying certain investments were guaranteed and federally insured.
The Securities and Exchange Commission on Monday sued Novers Financial, Christopher A. Novinger and Brady J. Speers, of Mansfield.
The complaint says customers were wrongly told that interests in so-called “life settlements” are “safe as CDs,” and “federally insured.”
Regulators say Novers since 2012 sold $4.3 million in life settlement interests and described the speculative investments as safe and secure.
With life settlements, policyholders sell their life insurance policies in return for a lump-sum payment. Investors buy the right to collect death benefits, but must continue paying premiums until the original policyholder dies.
The company on Monday didn’t immediately return a message for comment.