How Do the Anti-Fraud Provisions of the Securities Act Affect the Sale of Life Settlement Investments?
Under the anti-fraud provisions of the Securities Act, misleading statements and material omissions made during the offer or sale of a life settlement investment that is a security constitute fraud regardless of whether or not the investment is registered. Even if the life settlement investment is not a security, misleading statements and material omissions may constitute fraud under the Washington State Consumer Protection Act.
