Mutual Benefits Corporation had been in the business of selling investments in viaticated insurance policies. On May 3, 2004, the Securities and Exchange Commission filed an enforcement action against Mutual Benefits and related entities. The following day, the U.S. District Court for the Southern District of Florida directed the appointment of a Receiver for Mutual Benefits. As part of the Receivership proceedings, the Receiver took control of the administration and management of the insurance policies held by Mutual Benefits. During the course of the Receivership, investors were given the option of retaining their investments in their policies, or directing the Receiver to sell their interests. Those who elected to retain their investments are obligated to pay for the continued servicing of the policies, and to pay their share of the ongoing premiums for the policies.
By Court Orders dated August 14, 2009 and December 14, 2009, as part of the wind-down of the Receivership proceedings, the Court authorized the transfer of the policies which investors had elected to retain (the “Keep Policies”) to the Mutual Benefits keep Policy Trust (the “Trust”); authorized the selection of Barry Mukamal as the Trustee of the Trust; and authorized the Trustee to enter into a Servicing Agreement with Litai Assets LLC (“Litai”), pursuant to which Litai now services the Keep Policies for the benefit of the Trustee and the investors in the Keep Policies.
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