July 16 (Reuters) - Life settlement company Life Partners Holdings Inc, which has been accused of accounting fraud by the U.S. Securities and Exchange Commission, said its Chief Financial Officer David Martin resigned to pursue another employment opportunity.
Martin, together with Life Partners’ CEO Brian Pardo and its general counsel Scott Peden, have been charged by the SEC with misleading shareholders and “systematically and materially” underestimating life expectancy estimates it used to price transactions.
Life settlement companies such as Life Partners buy insurance policies from people for a fraction of their value and continue to pay premiums, betting that they will eventually make a profit when the seller dies. The profit decreases if the person lives longer than expected.
Martin’s resignation is effective as of close of business on July 31, the company said in a regulatory filing.
Shares of the Waco, Texas-based company, which have lost nearly two-thirds of their value since the SEC’s accusations in January, closed at $2.37 on Monday on the Nasdaq.