Q. Were Life Partners or any of its clients affected by the recent SEC charges against Stanford Group?

A. No. Neither LPHI nor any of its clients have any exposure to the recent SEC action against Stanford Group. Any information to the contrary is simply erroneous and untrue.

While one of the Stanford Group companies did approach Life Partners to serve as a depository for escrow funds about a year ago, it was determined that the company could not hold escrow funds. At no time have any escrowed funds ever been held by any offshore financial institution or held in any form other than cash or U.S. government securities.

Our independent escrow agent uses JPMorganChase as the depository for all escrow funds. These funds are held only in cash or U.S. Treasuries.