Life Partners files suit against optionsXpress
17 April 2014 Texas
Image: Shutterstock
Life Partners Holdings has filed suit against optionsXpress, a subsidiary of The Charles Schwab Corporation, the company’s chief financial officer, and one of the company’s largest customers, for allegedly issuing and selling counterfeit shares of Life Partners Holdings stock.
The lawsuit, filed in Illinois by California attorney Gary Aguirre, whose practice focuses on market manipulation, asks the court for an order preventing the Schwab subsidiary from creating and selling shares of Life Partners Holdings’ stock which were not authorised by the company.
The action also asks the court for protection from securities fraud, deceptive business practices and civil conspiracy arising from the unlawful issuance of the counterfeit shares.
The lawsuit is based on findings in an administrative proceeding by the US Securities and Exchange Commission against optionsXpress and the other defendants which concluded that optionsXpress, its chief financial officer, and one of its biggest customers committed securities fraud by engaging in the sales of "counterfeit-phantom stock" passed off as the genuine stock of 25 public companies, including almost $5.5 million of counterfeit-phantom stock of Life Partners Holdings, Inc.
Life Partners Holdings CEO, Brian Pardo, said: “This case isn’t about money. It’s about confidence in the market. It’s about making sure that, in the future, shareholders can be sure that they are purchasing legitimate, authorised stock. Individual investors need to know that the stock they are buying is real and not phantom stock cooked up by Wall Street insiders."
"Without a stock certificate, we’ve seen how easy it is for Wall Street to pass off counterfeit stock in your account as legitimate and we want to put a stop to it.”
The company is continuing to investigate other persons and entities who may have engaged in counterfeiting shares of Life Partners Holdings, Inc.
The lawsuit, filed in Illinois by California attorney Gary Aguirre, whose practice focuses on market manipulation, asks the court for an order preventing the Schwab subsidiary from creating and selling shares of Life Partners Holdings’ stock which were not authorised by the company.
The action also asks the court for protection from securities fraud, deceptive business practices and civil conspiracy arising from the unlawful issuance of the counterfeit shares.
The lawsuit is based on findings in an administrative proceeding by the US Securities and Exchange Commission against optionsXpress and the other defendants which concluded that optionsXpress, its chief financial officer, and one of its biggest customers committed securities fraud by engaging in the sales of "counterfeit-phantom stock" passed off as the genuine stock of 25 public companies, including almost $5.5 million of counterfeit-phantom stock of Life Partners Holdings, Inc.
Life Partners Holdings CEO, Brian Pardo, said: “This case isn’t about money. It’s about confidence in the market. It’s about making sure that, in the future, shareholders can be sure that they are purchasing legitimate, authorised stock. Individual investors need to know that the stock they are buying is real and not phantom stock cooked up by Wall Street insiders."
"Without a stock certificate, we’ve seen how easy it is for Wall Street to pass off counterfeit stock in your account as legitimate and we want to put a stop to it.”
The company is continuing to investigate other persons and entities who may have engaged in counterfeiting shares of Life Partners Holdings, Inc.
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