Fla. Regulators Issue Citations In $117 Million Viatical Scheme.Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and regulators have filed cease-and-desist orders Cease-and-desist order An order issued after notice and opportunity for hearing, requiring a depository institution, a holding company or a depository institution official to terminate unlawful, unsafe or unsound banking practices. in cases involving the sale of more than $117 million in unregistered securities unregistered security See restricted security. marketed as interests in viaticated life insurance policies from 1996 to 2001. Most of the policies sold as investments didn't did·n't Contraction of did not. didn't did not didn't do exist, and there were no contractual relationships between the insurance companies and the investors to document the investment or otherwise protect the investor, said Roger Handley of the state's Department of Banking and Finance. The March 29 action involves 16 businesses and 114 individuals. The department is seeking fines of up to $5,000 for each of the 3,000 transactions that allegedly violated vi·o·late tr.v. vi·o·lat·ed, vi·o·lat·ing, vi·o·lates 1. To break or disregard (a law or promise, for example). 2. To assault (a person) sexually. 3. the state's Securities and Investor Protection Act, Handley said. It could translate into more than $17 million in penalties if the maximum fine is given for each of the transactions, in which more than 600 investors were victims. The actions resulted from an investigation that led to the filing of an administrative complaint against the Lake Worth, Fla.-based American Benefits Services Inc. in June 1999. |
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