Tuesday, May 1, 2007

Urgent Premiums Due

After spending the last two weeks talking to other investors and reading reports from viatical experts, I am starting to believe that the receivership’s management of MBC assets (while maybe not illegal) is no better for the investor than the fraudulent operation of MBC. The receivership is putting intense pressure on the investors who voted to keep their interest in over three thousand policies to pay their first round premium payments within forty-five days of the mailing. (visit the UPDATES tab on the receivers website www.mbcreceiver.com and read their URGENT notice in red. According to the receivership, the mailing for these invoices was to be completed by 04/30/2007. To date, my parents have an interest in 24 policies in this category and have only received payment invoices on 10. So far, we have paid one premium fee of approximately $1.9k and have a balance due of around $38k. By the time the rest of our invoices come in, our balance due could increase to $80-90k, which would be equal to about 20% of our total investment.

In just a few days, we will observe the third anniversary of the SEC takeover of MBC. Doesn’t it seem that the receiver has had enough time to research the assets of MBC and give the investors enough information to make intelligent decisions on whether to continue trying to salvage a part of their investment or just give up and accept the loss? I have taken the information the investors have been received from the receiver to several banks, financial planners and viatical experts and NONE have said they would not recommend any more money being put into this investment program. Therefore, I am of the opinion that unless the receiver provides additional information (a sample of what’s needed can be found by searching for “Special Report MBC Policy Sales” on google- and copying the first two pages of the report. Then drop down to the next item and search through the “Viatical-Expert” web pages). The lady that hosts this web site is a consumer advocate, a viatical expert, and a genuinely nice person. Next week, I am going to contact the state of Florida Attorney Generals Office, the Governor and my Lawyer in Fort Lauderdale to discuss the possibility of filing an injunction against the receiver to try and stop them from dissolving our interest in our policies until we are provided the information we need. If that fails, and unless we get more investor support (numbers of investors agreeing with me – not money), it probably will. We will probably decide not to put any more money into this “scheme” and spend the rest of our time and resources trying to make the guilty pay.