The FBI recently raided the Florida offices of Imperial Holdings, a company that makes lump-sum payments on legal settlements and life insurance policies. The company, its CEO and COO, and other employees, are under investigation for its life insurance business, Reuters reported.
In a statement, Imperial Holdings said the investigation does not affect the company's structured settlement business, just its practice of purchasing individual life insurance policies. The company chairman and CEO, Antony Mitchell, said the raid was a complete surprise, but expects normal operations of all its business segments to resume shortly.
"We are not aware of any wrongdoing and will cooperate fully with all relevant authorities to assist them in their investigation," Mitchell said.
The investigation surrounds the company's role in the controversial practice of providing liquidity solutions on life insurance policies. According to Wall Street 24/7, buying life insurance policies as well as structured settlements has been the center of many ethical debates, and it is unclear as to what the FBI is investigating. In response to the raid, shares of Imperial were halted for pending news, and ended Monday down 2.8 percent.