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| 8-K - LIFE PARTNERS HOLDINGS INC | v208224_8-k.htm |
LIFE
PARTNERS ANNOUNCES TRUST COMPANY CHARTER
ISSUED
FOR ESCROW AGENT
WACO, TX — January 13, 2011 — Life
Partners Holdings, Inc. (NASDAQ GS: LPHI) is pleased to announce that the
Texas Banking Commissioner has granted a trust company charter for life
settlement escrow services to members of the Dunnam & Dunnam, L.L.P. law
firm (“Dunnam & Dunnam”), which currently serves as escrow agent for Life
Partners, Inc (“LPI”).
Dunnam
& Dunnam, a preeminent AV-rated law firm in Waco, Texas, has provided LPI
and its clients with escrow services since 2008. In 2010, the four family
members of the Dunnam law firm filed an application for a state trust charter in
order to distinguish and improve their escrow operations in a structured and
regulated setting. The Texas Department of Banking subjects all charter
applicants to a rigorous and lengthy examination process which took six months
to complete. The Texas Banking Department officials issued an Order
approving their charter on December 28, 2010.
The new
trust company will operate under the name Advance Trust & Life Escrow
Services, L.T.A. (“Advance Trust”) and expects the transition of escrow services
from Dunnam & Dunnam to Advance Trust to take place on or about February 1,
2011. There will be no effect on current business or escrow operations from the
standpoint of LPI’s clients. Advance Trust will operate with the regulatory
oversight of the Texas Department of Banking which will conduct regular audits
of the Advance Trust and will examine the trust company’s operations on a
regular basis to assure compliance with all laws and regulations.
Jim
Dunnam, a partner at Dunnam & Dunnam law firm said, “We voluntarily sought
this new structure so that both LPI clients and we would have the benefit of
independent governmental oversight of our escrow operations. It just
adds another level of assurance for everyone’s benefit.”
“We
couldn’t be more pleased with Dunnam’s performance as LPI’s escrow agent and
this new trust entity is a natural outgrowth from their existing escrow
operations. Client funds are handled with the utmost care and
precautions. Policy transactions are closed quickly, and they are
fast and accurate in all they do,” said Brian D. Pardo, Chairman and Chief
Executive Officer for Life Partners Holdings, Inc.
Internal
Controls
Since
commencing its role as escrow agent in 2008, Dunnam & Dunnam has made
significant investments to build efficient and effective information technology
systems, while providing the utmost in client protection. For
example, the two firms’ systems utilize a Business-to-Business data connection
through which data is synchronized every 10 minutes to reflect account changes
made by either firm. To protect data integrity, extensive checks and
balances exist in both systems to prevent errors and verify accuracy of
data.
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Dunnam
has also engaged an independent accounting firm to verify that funds held in
escrow at JPMorgan Chase & Co. are in balance with the books and records of
both Dunnam and LPI. This review is performed on a quarterly
basis.
Additionally,
Dunnam has taken the following preemptive steps to protect all funds held in
escrow:
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JPMorgan
Chase & Co. was selected as principal depository institution for
escrowed premiums. This bank is, of course, a member of FDIC
and is one of the world’s best capitalized
banks.
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Any
funds that exceed FDIC insurance coverage are held in a JPMorgan U.S.
government money market fund to eliminate market risk and safeguard
principal.
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Dunnam
provides LPI with hard copies of bank statements for all accounts on a
monthly basis.
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Dunnam
has obtained fidelity bonds and errors and omissions coverage to insure
its internal operations.
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Management
personnel of the escrow department include a retired bank president with
over 40 years of banking experience and a Certified Public Accountant with
over 20 years experience as County
Treasurer.
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LPI is
delighted that the Dunnams have taken this step to advance their escrow
operations and placed them under the regulatory authority of the Texas
Department of Banking. This evolution is in keeping with LPI’s goal
to provide the highest quality of service and value to its clients.
About
Dunnam & Dunnam, L.L.P.
A Central
Texas institution since 1925, the Waco law firm of Dunnam & Dunnam, L.L.P.
continues to pride itself on delivering expert legal services across the board
to its clientele. Generations of Central Texans have trusted the Dunnam firm to
handle the most important, life-changing matters a person can encounter:
catastrophic injuries and deaths, divorces, adoptions, arrests, business
formations and dissolutions, and litigation in all areas. The firm is also
available to assist in estate planning, trust formation, real estate
transactions and other such legal matters which still need the utmost expertise
delivered under the current state of the law.
About
Life Partners
Life Partners is the world’s
oldest and one of the most active companies in the United States engaged in the
secondary market for life insurance, commonly called “life settlements.” Since
its incorporation in 1991, Life Partners has completed over 127,000 transactions
for its worldwide client base of over 27,000 high net worth individuals and
institutions in connection with the purchase of over 6,400 policies totaling
approximately $2.8 billion in face value.
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Visit our
website at: www.lphi.com
Safe
Harbor - This press release contains certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Prospective investors are cautioned that any such
forward-looking statements are not guarantees of future performance and involve
risks and uncertainties, and that actual results may differ materially from
those projected in the forward-looking statements as a result of various
factors. The statements in this news release that are not historical statements,
including statements regarding future financial performance, future life
settlement business and future escrow operations, are forward-looking statements
within the meaning of the federal securities laws. These statements are subject
to numerous risks and uncertainties, many of which are beyond our control, that
could cause actual results to differ materially from such statements. For
information concerning these risks and uncertainties, see our most recent Form
10-KSB. We disclaim any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise, except as may be required by law.
************
FOR MORE
INFORMATION, CONTACT:
Shareholder
Relations (254) 751-7797
or info@lifepartnersinc.com
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