PRESS RELEASE
Securities Department Takes Legal Action Against Sellers of Viaticals
 
For Immediate Release
Thursday, April 08, 1999 
 
Contact: Irving Faught, Administrator
  Oklahoma Department of Securities
  405-280-7700
 
 
Oklahoma City/////  The Oklahoma Department of Securities filed an action in the District Court of Oklahoma County against two companies allegedly offering and selling participation interests in viatical settlements in violation of Oklahoma securities laws. The action alleges that the companies, Accelerated Benefits Corporation of Winter Park, Florida, and American Financial Associates of Oklahoma City, offer and sell unregistered interests in the proceeds of life insurance policies of persons who are terminally ill or have short life expectancies. It is further alleged that sales are made without adequate disclosure of the facts and risks involved in such investments.

Irving Faught, the Administrator of the Department said: "Investing in viatical settlement contracts may create securities problems for unwary investors and providers. Experience shows that there are risks associated with these investments and they deserve the same scrutiny as any other risky investment."
It is the position of the Department that investments intended to fund viatical settlement contracts are securities under Oklahoma law.

It is unlawful to offer or sell any security in Oklahoma unless the security or the transaction is registered or exempt from registration. Further, Faught said, " it is unlawful for any person to transact offers or sales in securities unless they are registered or exempt from registration as a broker/dealer or agent."

The Department alleges that the companies advertised the securities as risk free and having a guaranteed rate of return. It is further alleged that the sellers failed to explain how investor returns are calculated and how such returns are guaranteed. Further, the sellers allegedly failed to inform investors of the impact on the stated rate of return if premium payments are not maintained of if the insured lives beyond the estimated life expectancy.
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This press release, and related information, is available on the Securities Commission's web site at securities.ok.gov, by phone at (405) 280-7700, or in writing at:  Oklahoma Securities Commission, 204 North Robinson, Suite 400, Oklahoma City, OK 73102.