Investors in Imperial Holdings LLC got a bit of a shock today, as the Justice Department shut the company down, and the FBI searched the company’s Boca Raton, Florida offices around 1PM today.
Trading in the shares of Imperial Holdings LLC on the New York Stock Exchange was also halted after the FBI raid. It’s said FBI agents were acting on a search warrant issued by the New Hampshire US Attorney’s office. There has been no response to inquiries from that office. Shares have remained halted since 1:45 PM today.
Imperial Holdings is a specialty finance company with a focus on providing premium financing for individual life insurance policies issued by insurance companies and purchasing structured settlements backed by annuities issued by insurance companies or their affiliates. If that sounds confusing, it’s probably because the company officials wanted it to be confusing, all the better to get away with some sort of potential scam.
Imperial Holdings only went public in February of this year with an ipo priced at $10.75, and have been on a steady decline since, with a much more abrupt decline beginning in early August. Before shares were halted the stock was down 20 cents to $6.30. Another case of American greed? We’ll have to wait for the investigation results. No word at this time of the SEC being involved in this.