0001144204-16-120389.txt : 20160819 0001144204-16-120389.hdr.sgml : 20160819 20160819171258 ACCESSION NUMBER: 0001144204-16-120389 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20160819 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20160819 DATE AS OF CHANGE: 20160819 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LIFE PARTNERS HOLDINGS INC CENTRAL INDEX KEY: 0000049534 STANDARD INDUSTRIAL CLASSIFICATION: LIFE INSURANCE [6311] IRS NUMBER: 742962475 STATE OF INCORPORATION: TX FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-07900 FILM NUMBER: 161843759 BUSINESS ADDRESS: STREET 1: 204 WOODHEW CITY: WACO STATE: TX ZIP: 76710 BUSINESS PHONE: 8003685569 MAIL ADDRESS: STREET 1: 204 WOODHEW CITY: WACO STATE: TX ZIP: 76710 FORMER COMPANY: FORMER CONFORMED NAME: IGE INC DATE OF NAME CHANGE: 19991110 8-K 1 v447413_8-k.htm FORM 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_____________

FORM 8-K

_____________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 19, 2016

_____________

LIFE PARTNERS HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

Texas

0-7900

74-2962475

(State or other jurisdiction

of incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

204 Woodhew

Waco, Texas

76712

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (254) 751-7797

___________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01

Regulation FD.

On August 19, 2016, Life Partners Holdings, Inc. (the “Company”) and its direct and indirect subsidiaries, Life Partners, Inc. and LPI Financial Services, Inc., filed with the United States Bankruptcy Court for the Northern District of Texas unaudited and unreviewed monthly operating reports for the Company and its direct and indirect subsidiaries for the month ended July 31, 2016 (the “Monthly Operating Reports”). The Monthly Operating Reports are attached to this current report on Form 8-K as Exhibit 99.1 through Exhibit 99.3 and are incorporated herein by reference.

Limitation on Incorporation by Reference:

In accordance with general instruction B.2 of Form 8-K, the information in Item 7.01 of this report, including Exhibit 99.1 through Exhibit 99.3, is furnished pursuant to Item 7.01 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section.

Item 9.01

Financial Statements and Exhibits.

(d)

Exhibits.

99.1

Monthly Operating Report for the month ended July 31, 2016 for Life Partners Holdings, Inc.

99.2

Monthly Operating Report for the month ended July 31, 2016 for Life Partners, Inc.

99.3

Monthly Operating Report for the month ended July 31, 2016 for LPI Financial Services, Inc.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	LIFE PARTNERS HOLDINGS, INC.


Date: August 19, 2016	By:	/s/ H. Thomas Moran II
		H. Thomas Moran II
		Chapter 11 Trustee

INDEX TO EXHIBITS

Item	Exhibit
99.1	Monthly Operating Report for the month ended July 31, 2016 for Life Partners Holdings, Inc.

99.2	Monthly Operating Report for the month ended July 31, 2016 for Life Partners, Inc.

99.3	Monthly Operating Report for the month ended July 31, 2016 for LPI Financial Services, Inc.

EX-99.1 2 v447413_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

	Monthly Operating Report
	ACCRUAL BASIS

CASE NAME:	Life Partners Holdings, Inc.

CASE NUMBER:	15-40289-rfn-11

JUDGE:	Russell Nelms

UNITED STATES BANKRUPTCY COURT

NORTHERN & EASTERN DISTRICTS OF TEXAS

REGION 6

MONTHLY OPERATING REPORT

MONTH ENDING:	July		2016
	MONTH		YEAR

IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING REPORT (ACCRUAL BASIS-1 THROUGH ACCRUAL BASIS-7) AND THE ACCOMPANYING ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT, AND COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY) IS BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE.

RESPONSIBLE PARTY:

/s/ H. Thomas Moran II		Trustee
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY		TITLE

H. Thomas Moran II		8/19/2016
PRINTED NAME OF RESPONSIBLE PARTY		DATE

PREPARER:

/s/ Paula Toy		Vice-President/Controller
ORIGINAL SIGNATURE OF PREPARER		TITLE

Paula Toy		8/19/2016
PRINTED NAME OF PREPARER		DATE

Monthly Operating Report

ACCRUAL BASIS-1

CASE NAME:	Life Partners Holdings, Inc.

CASE NUMBER:	15-40289-rfn-11

COMPARATIVE BALANCE SHEET

		SCHEDULE AMOUNT		MAY			JUNE			JULY
ASSETS
1.	UNRESTRICTED CASH	$	51,248	$	77,771		$	20,771		$	8,336
2.	RESTRICTED CASH
3.	TOTAL CASH	$	51,248	$	77,771		$	20,771		$	8,336
4.	ACCOUNTS RECEIVABLE (NET)
5.	INVENTORY
6.	NOTES RECEIVABLE
7.	PREPAID EXPENSES			$	213,377		$	183,385		$	151,387
8.	OTHER (ATTACH LIST)	$	76,415	$	84,665		$	84,665		$	84,665
9.	TOTAL CURRENT ASSETS	$	127,664	$	375,813		$	288,821		$	244,388
10.	PROPERTY, PLANT & EQUIPMENT	$	2,188,639	$	0		$	0		$	0		¹
11.	LESS: ACCUMULATED DEPRECIATION/DEPLETION			$	0		$	0		$	0		¹
12.	NET PROPERTY, PLANT & EQUIPMENT	$	2,188,639	$	0		$	0		$	0
13.	DUE FROM INSIDERS
14.	OTHER ASSETS - NET OF AMORTIZATION (ATTACH LIST)	$	166,250	$	0		$	0		$	0
15.	OTHER (ATTACH LIST)
16.	TOTAL ASSETS	$	2,482,552	$	375,813		$	288,821		$	244,388
POSTPETITION LIABILITIES
17.	ACCOUNTS PAYABLE			$	633,462		$	635,007		$	634,684		⁴
18.	TAXES PAYABLE			$	10,710		$	10,040		$	8,876
19.	NOTES PAYABLE
20.	PROFESSIONAL FEES			$	2,075,173		$	2,727,215		$	2,507,556		^4&5
21.	SECURED DEBT			$	32,029		$	0		$	0
22.	OTHER (ATTACH LIST)			$	(6,868	)	$	(6,868	)	$	(13,043	)
23.	TOTAL POSTPETITION LIABILITIES			$	2,744,506		$	3,365,394		$	3,138,074
PREPETITION LIABILITIES
24.	SECURED DEBT	$	267,505										¹
25.	PRIORITY DEBT	$	3,991,351	$	90,306		$	41,806		$	41,806		⁶
26.	UNSECURED DEBT	$	114,283,485	$	1,588,832		$	1,588,832		$	1,588,832		²
27.	OTHER (ATTACH LIST)
28.	TOTAL PREPETITION LIABILITIES	$	118,542,341	$	1,679,138		$	1,630,638		$	1,630,638
29.	TOTAL LIABILITIES	$	118,542,341	$	4,423,643		$	4,996,032		$	4,768,712
EQUITY
30.	PREPETITION OWNERS' EQUITY			$	(73,722,301	)	$	(73,722,301	)	$	(73,722,301	)
31.	POSTPETITION CUMULATIVE PROFIT OR (LOSS)			$	(8,661,081	)	$	(9,391,211	)	$	(10,007,033	)
32.	DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)			$	78,335,551		$	78,406,301		$	79,205,010		³
33.	TOTAL EQUITY			$	(4,047,830	)	$	(4,707,211	)	$	(4,524,324	)
34.	TOTAL LIABILITIES & OWNERS' EQUITY			$	375,813		$	288,821		$	244,388

Property Plant & Equipment included the buildings that were sold per Dkt. 1089. Secured Debt and Taxes Payable included property taxes owed on the buildings that were collected at closing.

The Schedule Amount for Item 26. Unsecured Debt includes Intercompany Due To/From Life Partners, Inc. shown below in Item 32.

Intercompany Due To/From Life Partners, Inc.

⁴

Item 17. Accounts Payables includes $415,251.40 of invoices from bankruptcy professionals that would otherwise be included in Item 20, Professional Fees.

⁵

Item 20. Professional Fees accrual reflects only expenses allocated to LPHI. MOR-6 reflects all bankruptcy professional fees of Life Partners Holdings and its subsidiaries.

⁶

Priority debt was reduced in June by an estimated tax extension payment of $48,500 for the 2016 Texas Franchise Tax. This tax is on the fiscal year ended 2/28/2015. As LPHI filed for bankruptcy on 1/20/2015, the vast majority of this tax debt was accrued pre-petition.

Monthly Operating Report

SUPPLEMENT TO

ACCRUAL BASIS-1

CASE NAME:	Life Partners Holdings, Inc.

CASE NUMBER:	15-40289-rfn-11

COMPARATIVE BALANCE SHEET

		SCHEDULE AMOUNT		MAY			JUNE			JULY
8. OTHER CURRENT ASSETS
8.	Pardo Family Holdings Trust (Advance to Price L. Johnson, PC)	$	24,441	$	31,323		$	31,323		$	31,323
8.	Pardo Family Holdings Trust (Advance to Kyle, Mathis & Lucas, LLP)	$	51,975	$	53,343		$	53,343		$	53,343
8.	Rent due from Life Partners, Inc.
8.
8.
8.
8.
8
8.	TOTAL - OTHER CURRENT ASSETS	$	76,415	$	84,665		$	84,665		$	84,665
14. OTHER ASSETS - NET OF AMORTIZATION
14.	Woolly Mammoth & Other Prehistoric Artifacts	$	166,250
14.
14.
14.
14.
14.	TOTAL - OTHER ASSETS (Net of Amort.)	$	166,250	$	-		$	-		$	-
15. OTHER ASSETS
15.
15.
15.
15.
15.
15.
15.
15.
15.
15.	TOTAL - OTHER ASSETS	$	-	$	-		$	-		$	-

POSTPETITION LIABILITIES
22.	US Trustee Fees			$	(6,868	)	$	(6,868	)	$	(13,043	)	¹
22.
22.
22.
22.
22.
22	TOTAL - OTHER POSTPETITION LIABILITIES			$	(6,868	)	$	(6,868	)	$	(13,043	)

The balance shown for US Trustee fees is negative because LPHI was overbilled for the 1st & 2nd quarter 2016 trustee fee. These bills were estimated to be the same as the previous quarter, but is less when calculated based on disbursements.

Monthly Operating Report

ACCRUAL BASIS-2

CASE NAME:	Life Partners Holdings, Inc.

CASE NUMBER:	15-40289-rfn-11

INCOME STATEMENT		APRIL			MAY			JUNE			JULY
REVENUES
1.	GROSS REVENUES
2.	LESS: RETURNS & DISCOUNTS
3.	NET REVENUE	$	0		$	0		$	0		$	0
COST OF GOODS SOLD
4.	MATERIAL
5.	DIRECT LABOR
6.	DIRECT OVERHEAD
7.	TOTAL COST OF GOODS SOLD	$	0		$	0		$	0		$	0
8.	GROSS PROFIT	$	0		$	0		$	0		$	0
OPERATING EXPENSES
9.	OFFICER / INSIDER COMPENSATION
10.	SELLING & MARKETING
11.	GENERAL & ADMINISTRATIVE	$	37,197		$	36,864		$	36,357		$	36,262
12.	RENT & LEASE	$	0		$	0		$	0		$	0
13.	OTHER (ATTACH LIST)	$	264		$	0		$	0		$	3,858
14.	TOTAL OPERATING EXPENSES	$	37,461		$	36,864		$	36,357		$	40,120
15.	INCOME BEFORE NON-OPERATING INCOME & EXPENSE	$	(37,461	)	$	(36,864	)	$	(36,357	)	$	(40,120	)
OTHER INCOME & EXPENSES
16.	NON-OPERATING INCOME (ATTACH LIST)	$	0		$	0		$	0		$	0
17.	NON-OPERATING EXPENSE (ATTACH LIST)	$	0		$	0		$	0		$	0
18.	INTEREST EXPENSE	$	273		$	173		$	87		$	(13	)
19.	DEPRECIATION / DEPLETION	$	0		$	0		$	0		$	0
20.	AMORTIZATION	$	0		$	0		$	0		$	0
21.	OTHER (ATTACH LIST)	$	3,336		$	(501	)	$	(670	)	$	(1,164	)
22.	NET OTHER INCOME & EXPENSES	$	3,609		$	(328	)	$	(583	)	$	(1,177	)
REORGANIZATION EXPENSES
23.	PROFESSIONAL FEES	$	215,238		$	525,336		$	689,346		$	573,757
24.	U.S. TRUSTEE FEES	$	650		$	325		$	0		$	325
25.	OTHER (ATTACH LIST)	$	3,558		$	1,819		$	5,010		$	2,798
26.	TOTAL REORGANIZATION EXPENSES	$	219,446		$	527,480		$	694,356		$	576,880
27.	INCOME TAX
28.	NET PROFIT (LOSS)	$	(260,515	)	$	(564,016	)	$	(730,130	)	$	(615,822	)

Monthly Operating Report

SUPPLEMENT TO

ACCRUAL BASIS-2

CASE NAME:	Life Partners Holdings, Inc.

CASE NUMBER:	15-40289-rfn-11

INCOME STATEMENT		APRIL		MAY			JUNE			JULY
OPERATING EXPENSES
13.	LEGAL & PROFESSIONAL FEES	$	264	$	0		$	0		$	3,858	¹
13.
13.
13.
13.
13.	TOTAL OTHER OPERATING EXPENSES	$	264	$	0		$	0		$	3,858
NON-OPERATING INCOME
16.	RENTAL INCOME
16.
16.
16.
16.	TOTAL NON-OPERATING INCOME	$	0	$	0		$	0		$	0
OTHER INCOME & EXPENSES
21.	LOSS ON SALE OF ICE AGE COLLECTION
21.	GAIN ON SALE OF BUILDINGS
21.	FRANCHISE TAX EXPENSE	$	3,336	($	501	)	($	670	)	($	1,164	)
21.	INTEREST INCOME
21.	NET OTHER INCOME & EXPENSES	$	3,336	($	501	)	($	670	)	($	1,164	)
REORGANIZATION EXPENSES
25.	TRANSCRIPTION SERVICES	$	1,022				$	3,681		$	1,362
25.	RELATIVITY HOSTING	$	1,114	$	1,125		$	631		$	811
25.	TRUSTEE TRAVEL EXPENSES	$	1,422	$	694		$	699		$	625
25.	TRUSTEE BOND EXPENSE
25.	TOTAL OTHER REORGANIZATION EXPENSES	$	3,558	$	1,819		$	5,010		$	2,798

Operating Expenses include professional fees related to the preparation of tax returns.

Monthly Operating Report

ACCRUAL BASIS-3

CASE NAME:	Life Partners Holdings, Inc.

CASE NUMBER:	15-40289-rfn-11

CASH RECEIPTS AND DISBURSEMENTS		APRIL			MAY			JUNE			QUARTER ENDED JUNE 30, 2016			JULY
1.	CASH - BEGINNING OF MONTH	$	164,660		$	117,716		$	77,771					$	20,771
RECEIPTS FROM OPERATIONS
2.	CASH SALES										$	0
COLLECTION OF ACCOUNTS RECEIVABLE
3.	PREPETITION				$	145					$	145					¹
4.	POSTPETITION										$	0
5.	TOTAL OPERATING RECEIPTS	$	0		$	145		$	0		$	145		$	0
NON-OPERATING RECEIPTS
6.	LOANS & ADVANCES (ATTACH LIST)										$	0
7.	SALE OF ASSETS										$	0
8.	OTHER (ATTACH LIST)	$	0		$	0		$	0		$	0		$	0
9.	TOTAL NON-OPERATING RECEIPTS	$	0		$	0		$	0		$	0		$	0
10.	TOTAL RECEIPTS	$	0		$	145		$	0		$	145		$	0
11.	TOTAL CASH AVAILABLE	$	164,660		$	117,862		$	77,771		$	145		$	20,771
OPERATING DISBURSEMENTS
12.	NET PAYROLL										$	0
13.	PAYROLL TAXES PAID										$	0
14.	SALES, USE & OTHER TAXES PAID							$	48,500		$	48,500					²
15.	SECURED / RENTAL / LEASES										$	0
16.	UTILITIES										$	0
17.	INSURANCE	$	33,094		$	33,094		$	4,674		$	70,862		$	955		³
18.	INVENTORY PURCHASES										$	0
19.	VEHICLE EXPENSES										$	0
20.	TRAVEL										$	0
21.	ENTERTAINMENT										$	0
22.	REPAIRS & MAINTENANCE										$	0
23.	SUPPLIES										$	0
24.	ADVERTISING										$	0
25.	OTHER (ATTACH LIST)	$	2,438		$	6,323		$	1,847		$	10,608		$	1,930
26.	TOTAL OPERATING DISBURSEMENTS	$	35,532		$	39,417		$	55,021		$	129,970		$	2,885
REORGANIZATION EXPENSES
27.	PROFESSIONAL FEES										$	0
28.	U.S. TRUSTEE FEES	$	11,063								$	11,063		$	6,487
29.	OTHER (ATTACH LIST)	$	348		$	674		$	1,980		$	3,002		$	3,063
30.	TOTAL REORGANIZATION EXPENSES	$	11,411		$	674		$	1,980		$	14,065		$	9,550
31.	TOTAL DISBURSEMENTS	$	46,944		$	40,091		$	57,000		$	144,035		$	12,434
32.	NET CASH FLOW	$	(46,944	)	$	(39,945	)	$	(57,000	)	$	(143,889	)	$	(12,434	)
33.	CASH - END OF MONTH	$	117,716		$	77,771		$	20,771					$	8,336

Refund of expense paid prepetition related to annual reporting mailouts.

Item 14. Sales, Use and Other Taxes paid includes the payment of 2016 Franchise Taxes.

Item 17. Insurance does not include the June 2016 D&O and E&O insurance payment which was paid by Life Partners, Inc. and was the last payment for the current policy period.

Monthly Operating Report

SUPPLEMENT TO

ACCRUAL BASIS-3

CASE NAME:	Life Partners Holdings, Inc.

CASE NUMBER:	15-40289-rfn-11

CASH RECEIPTS AND DISBURSEMENTS		APRIL		MAY		JUNE		QUARTER ENDED JUNE 30, 2016		JULY

OTHER NON-OPERATING RECEIPTS
8.	Sale of Airport Hangar							$	-
8.	Lease & Rental Income							$	-
8.	Return of Retainer							$	-
8.	Worker's Compensation Dividend							$	-
8.	Total - Non-Operating Receipts	$	-	$	-	$	-	$	0	$	-

OTHER OPERATING DISBURSEMENTS
25.	Transfer to LPI bank account							$	-
25.	Registrar & Transfer Fees	$	1,800	$	1,053	$	1,051	$	3,904	$	1,095
25	Penalty Interest on 2014 Property Taxes							$	-
25.	Filing Fees	$	638	$	1,125	$	796	$	2,559	$	835
25.	Web Page Hosting			$	4,145			$	4,145
25.	Bank Acct Analysis Fee							$	-
25.	Total - Other Operating Disbursements	$	2,438	$	6,323	$	1,847	$	10,608	$	1,930

OTHER REORGANIZATION EXPENSES
29.	Transcription Services	$	348	$	674	$	1,980	$	3,002	$	3,063
29.	Trustee Bond							$	0
29.	Total - Other Reorganization Expenses	$	348	$	674	$	1,980	$	3,002	$	3,063

Monthly Operating Report

ACCRUAL BASIS-4

CASE NAME:	Life Partners Holdings, Inc.

CASE NUMBER:	15-40289-rfn-11

ACCOUNTS RECEIVABLE AGING		SCHEDULE AMOUNT		MAY		JUNE		JULY
1.	0-30
2.	31-60
3.	61-90
4.	91+
5.	TOTAL ACCOUNTS RECEIVABLE	$	0	$	0	$	0	$	0
6.	AMOUNT CONSIDERED UNCOLLECTIBLE
7.	ACCOUNTS RECEIVABLE (NET)	$	0	$	0	$	0	$	0

AGING OF POSTPETITION TAXES AND PAYABLES

MONTH:

July 2016

		0-30		31-60		61-90		91+
TAXES PAYABLE		DAYS		DAYS		DAYS		DAYS		TOTAL
1.	FEDERAL									$	0
2.	STATE									$	0
3.	LOCAL									$	0
4.	OTHER (ATTACH LIST)	$	8,876							$	8,876	²
5.	TOTAL TAXES PAYABLE	$	8,876	$	0	$	0	$	0	$	8,876

6.	ACCOUNTS PAYABLE	$	1,382	$	1,092	$	0	$	632,211	$	634,684

STATUS OF POSTPETITION TAXES

MONTH:

July 2016

		BEGINNING		AMOUNT					ENDING
		TAX		WITHHELD AND/			AMOUNT		TAX
FEDERAL		LIABILITY		0R ACCRUED			PAID		LIABILITY
1.	WITHHOLDING								$	0
2.	FICA-EMPLOYEE								$	0
3.	FICA-EMPLOYER								$	0
4.	UNEMPLOYMENT								$	0
5.	INCOME								$	0
6.	OTHER (ATTACH LIST)								$	0
7.	TOTAL FEDERAL TAXES	$	0	$	0		$	0	$	0
STATE AND LOCAL
8.	WITHHOLDING								$	0
9.	SALES								$	0
10.	EXCISE								$	0
11.	UNEMPLOYMENT								$	0
12.	REAL PROPERTY	$	0						$	0	¹
13.	PERSONAL PROPERTY								$	0
14.	OTHER (ATTACH LIST)	$	10,040	$	(1,164	)			$	8,876	²
15.	TOTAL STATE & LOCAL	$	10,040	$	(1,164	)	$	0	$	8,876
16.	TOTAL TAXES	$	10,040	$	(1,164	)	$	0	$	8,876

All property taxes for calendar 2014 & 2015 were paid at the closing on the sale of the buildings.

This is Texas Franchise Tax previously shown on LPI books. This does not include the balance of $41,805.59 considered prepetition.

Monthly Operating Report

ACCRUAL BASIS-5

CASE NAME:	Life Partners Holdings, Inc.

CASE NUMBER:	15-40289-rfn-11

MONTH:

July 2016

BANK RECONCILIATIONS

		Account #1		Account #2		Account #3
A.	BANK:	Bank of America		Alliance Bank		Bank of Texas
B.	ACCOUNT NUMBER:	3363		613		3772		TOTAL
C.	PURPOSE (TYPE):	DIP Account		MoneyMarket		Checking
1.	BALANCE PER BANK STATEMENT					$	15,817	$	15,817
2.	ADD: TOTAL DEPOSITS NOT CREDITED							$	0
3.	SUBTRACT: OUTSTANDING CHECKS					$	7,480	$	7,480
4.	OTHER RECONCILING ITEMS							$	0
5.	MONTH END BALANCE PER BOOKS	$	0	$	0	$	8,336	$	8,336
6.	NUMBER OF LAST CHECK WRITTEN		1013				1096

INVESTMENT ACCOUNTS

		DATE OF	TYPE OF	PURCHASE		CURRENT
BANK, ACCOUNT NAME & NUMBER		PURCHASE	INSTRUMENT	PRICE		VALUE
7.
8.
9.
10.
11.	TOTAL INVESTMENTS			$	0	$	0

CASH

12.	CURRENCY ON HAND	$	0

13.	TOTAL CASH - END OF MONTH	$	8,336

Monthly Operating Report

ACCRUAL BASIS-6

CASE NAME:	Life Partners Holdings, Inc.

CASE NUMBER:	15-40289-rfn-11

MONTH:

July 2016

PAYMENTS TO INSIDERS AND PROFESSIONALS

INSIDERS
		TYPE OF	AMOUNT		TOTAL PAID
NAME		PAYMENT	PAID		TO DATE
1.
2.
3.
4.
5.
6.	TOTAL PAYMENTS TO INSIDERS		$	0	$	0


	PROFESSIONALS										¹
		DATE OF COURT							TOTAL
		ORDER AUTHORIZING	AMOUNT		AMOUNT		TOTAL PAID		INCURRED
	NAME	PAYMENT	APPROVED		PAID		TO DATE		& UNPAID
1.	Asset Servicing Group	04/22/16	$	1,134,925			$	1,134,925	$	565,927
2.	Bridgepoint Consulting	04/15/16	$	1,172,526	$	46,840	$	1,172,526	$	652,595
3.	Epiq Bankruptcy Solutions	05/22/15	$	4,470,169	$	230,132	$	3,730,404	$	764,765
4.	Forshey & Prostok, LLP	04/28/15	$	154,409			$	154,409	$	0
5.	Kevin Buchanan & Associates	07/01/15	$	140,235			$	140,235	$	0
6.	Kim Hinkle, Attorney at Law	04/22/16	$	297,725	$	11,426	$	297,725	$	105,087
7.	MMS Advisors	03/25/16	$	246,992			$	246,992	$	0
8.	Munsch, Hardt, Kopf & Harr, P.C.	05/24/16	$	2,124,285	$	135,069	$	2,124,285	$	1,482,630
9.	Phillips Murrah	04/22/16	$	257,940			$	257,940	$	250,817
10.	Pronske Goolsby & Kathman, P.C.	05/05/15	$	128,618			$	128,618	$	0
11.	Thompson & Knight, LLP	06/03/16	$	9,956,051	$	388,889	$	9,956,051	$	9,510,355
12.	Tom Moran, US Trustee	12/18/15	$	11,850			$	11,850	$	1,074,282	²
13.	Smith, Jackson, Boyer & Bovard, PLLC	04/15/16	$	57,516	$	211	$	57,516	$	9,846
14.	Predictive Resources	04/22/16	$	374,603	$	13,398	$	374,603	$	151,540
15.	D3G Capital Management LLC/Lewis & Ellis Inc	05/24/16	$	172,540	$	3,000	$	172,540	$	55,385
16.	Barbara Pope	12/15/15	$	42,477			$	42,477	$	0	³
17.	Sutherland Asbill & Brennan LLP	03/25/16	$	0	$	12,602	$	12,602	$	36,515
18.	TOTAL PAYMENTS TO PROFESSIONALS				$	841,566	$	20,015,698	$	14,659,744

POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE PROTECTION PAYMENTS

		SCHEDULED		AMOUNTS
		MONTHLY		PAID		TOTAL
		PAYMENTS		DURING		UNPAID
NAME OF CREDITOR		DUE		MONTH		POSTPETITION
1.	Bank Direct Capital Finance	$	1,105	$	0	$	0	⁴
2.	First Insurance Funding Corp.	$	32,116	$	0	$	0	⁴
3.
4.
5.
6.	TOTAL	$	33,221	$	0	$	0

Professional fee and expense allocations are estimated by each firm across the 3 debtors, and are booked accordingly in the books and records. Payments are made based on cash availability and intercompany accounting. The total of all aggregate unallocated fees and expenses for the 3 debtors are reflected in the schedule above.

Total Paid To Date excludes out-of-pocket expense reimbursements on behalf of subsidiary debtors.

Amounts shown do not include employee/contractor payments.

⁴

Obligation has been paid in full.

Monthly Operating Report

ACCRUAL BASIS-7

CASE NAME:	Life Partners Holdings, Inc.

CASE NUMBER:	15-40289-rfn-11

MONTH:

July 2016

QUESTIONNAIRE

		YES	NO
1.	HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD?		X
2.	HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT?		X
3.	ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES?		X
4.	HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES THIS REPORTING PERIOD?		X
5.	HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE DEBTOR FROM ANY PARTY?	X
6.	ARE ANY POSTPETITION PAYROLL TAXES PAST DUE?		X
7.	ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES PAST DUE?		X
8.	ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE?		X
9.	ARE ANY OTHER POSTPETITION TAXES PAST DUE?		X
10.	ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS DELINQUENT?	X
11.	HAVE ANY PREPETITION TAXES BEEN PAID DURING THE REPORTING PERIOD?		X
12.	ARE ANY WAGE PAYMENTS PAST DUE?		X

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "YES," PROVIDE A DETAILED EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.

Questionnaire Item 5. A postpetition loan was received from First Insurance Funding Corp. to finance D&O and E&O insurance premiums. Loans were received from maturities of Life Settlements per Docket 1127 related to financing.

Questionnaire Item 10. Past due amounts are mainly fees from non-bankruptcy professionals incurred after the filing date.

INSURANCE

		YES	NO
1.	ARE WORKER'S COMPENSATION, GENERAL LIABILITY AND OTHER NECESSARY INSURANCE COVERAGES IN EFFECT?	X
2.	ARE ALL PREMIUM PAYMENTS PAID CURRENT?	X
3.	PLEASE ITEMIZE POLICIES BELOW.

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "NO," OR IF ANY POLICIES HAVE BEEN CANCELLED OR NOT RENEWED DURING THIS REPORTING PERIOD, PROVIDE AN EXPLANATION BELOW. ATTACH ADDITIONAL SHEETS IF NECESSARY.

INSTALLMENT PAYMENTS
TYPE OF			PAYMENT AMOUNT
POLICY	CARRIER	PERIOD COVERED	& FREQUENCY
Directors & Officers	Illinois National	09/30/15- 09/30/16
Errors & Omissions	Indian Harbor	09/30/15- 09/30/16
Total D&O and E&O Financed thru	First Insurance Funding Corp	09/30/15- 09/30/16	$	32,116.09 /month	¹
Commercial Package*	Allied Insurance	06/14/16 - 06/14/17	$	954.83 /month
Cyber Liability	Beazley Insurance	06/14/16 - 06/14/17	$	3,597.00 /annual

* includes auto, building, edp, excess liability

All payments for the current policy period have been made.

EX-99.2 3 v447413_ex99-2.htm EXHIBIT 99.2

Exhibit 99.2

	Monthly Operating Report
	ACCRUAL BASIS

CASE NAME:	Life Partners, Inc.

CASE NUMBER:	15-40289 (Jointly Administered)

JUDGE:	Russell Nelms

UNITED STATES BANKRUPTCY COURT

NORTHERN & EASTERN DISTRICTS OF TEXAS

REGION 6

MONTHLY OPERATING REPORT

MONTH ENDING:		July		2016
		MONTH		YEAR

RESPONSIBLE PARTY:

/s/ H. Thomas Moran II		Trustee
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY		TITLE

H. Thomas Moran II		8/19/2016
PRINTED NAME OF RESPONSIBLE PARTY		DATE

PREPARER:

/s/ Paula Toy		Vice-President/Controller
ORIGINAL SIGNATURE OF PREPARER		TITLE

Paula Toy		8/19/2016
PRINTED NAME OF PREPARER		DATE

	Monthly Operating Report
	ACCRUAL BASIS-1

CASE NAME:	Life Partners, Inc.

CASE NUMBER:	15-40289 (Jointly Administered)

COMPARATIVE BALANCE SHEET

		SCHEDULE AMOUNT		MAY			JUNE			JULY
ASSETS
1.	UNRESTRICTED CASH	$	295,821	$	4,090,619		$	2,446,097		$	681,334
2.	RESTRICTED CASH	$	101,555	$	(0	)	$	(0	)	$	0
3.	TOTAL CASH	$	397,376	$	4,090,619		$	2,446,097		$	681,334
4.	ACCOUNTS RECEIVABLE (NET)	$	143,949	$	89,998		$	68,498		$	46,998
5.	INVENTORY
6.	NOTES RECEIVABLE	$	8,912
7.	PREPAID EXPENSES	$	343,387	$	101,248		$	101,962		$	95,826		6
8.	OTHER (ATTACH LIST)	$	49,475	$	53,545		$	61,539		$	53,539
9.	TOTAL CURRENT ASSETS	$	943,098	$	4,335,410		$	2,678,096		$	877,698
10.	PROPERTY, PLANT & EQUIPMENT			$	1,979,129		$	1,979,129		$	1,979,129
11.	LESS: ACCUMULATED DEPRECIATION/DEPLETION			$	(1,876,396	)	$	(1,880,310	)	$	(1,884,223	)
12.	NET PROPERTY, PLANT & EQUIPMENT	$	299,672	$	102,733		$	98,820		$	94,906
13.	DUE FROM INSIDERS	$	74,265,951	$	0		$	0		$	0
14.	OTHER ASSETS - NET OF AMORTIZATION (ATTACH LIST)	$	662,950	$	0		$	0		$	0
15.	OTHER (ATTACH LIST)	$	13,513,629	$	17,268,742		$	17,923,169		$	18,551,354
16.	TOTAL ASSETS	$	89,685,300	$	21,706,885		$	20,700,085		$	19,523,958
POSTPETITION LIABILITIES
17.	ACCOUNTS PAYABLE			$	1,893,947		$	2,051,966		$	3,680,706		4
18.	TAXES PAYABLE			$	101,343		$	106,912		$	112,482		5
19.	NOTES PAYABLE			$	0		$	0		$	0
20.	PROFESSIONAL FEES			$	5,931,577		$	7,213,519		$	7,763,939		^4&7
21.	SECURED DEBT			$	0		$	0		$	0
22.	OTHER (ATTACH LIST)			$	30,459,419		$	30,164,530		$	31,117,178		8
23.	TOTAL POSTPETITION LIABILITIES			$	38,386,286		$	39,536,928		$	42,674,304
PREPETITION LIABILITIES
24.	SECURED DEBT		undetermined	$	4,504		$	4,504		$	4,504		^2&5
25.	PRIORITY DEBT		undetermined	$	0		$	0		$	0
26.	UNSECURED DEBT	$	9,203,450	$	686,588		$	686,588		$	686,588
27.	OTHER (ATTACH LIST)			$	0		$	0		$	0
28.	TOTAL PREPETITION LIABILITIES	$	9,203,450	$	691,092		$	691,092		$	691,092
29.	TOTAL LIABILITIES	$	9,203,450	$	39,077,379		$	40,228,021		$	43,365,396
EQUITY
30.	PREPETITION OWNERS' EQUITY			$	78,978,770		$	78,978,770		$	78,978,770
31.	POSTPETITION CUMULATIVE PROFIT OR (LOSS)			$	(25,233,878	)	$	(27,308,049	)	$	(30,755,451	)
32.	DIRECT CHARGES TO EQUITY (ATTACH EXPLANATION)			$	(71,115,385	)	$	(71,198,657	)	$	(72,064,758	)	1
33.	TOTAL EQUITY			$	(17,370,493	)	$	(19,527,936	)	$	(23,841,438	)
34.	TOTAL LIABILITIES & OWNERS' EQUITY			$	21,706,885		$	20,700,085		$	19,523,958

This includes the following intercompany amounts shown below. The Schedule Amount related to this is shown under Item 13. Due From Insiders.

Due from Life Partners Holdings, Inc.	$	79,205,010.10
Due from LPHI Management Services	$	11,719.74
Due to LPI Financial Services, Inc.	$	(7,151,972.18	)
	$	72,064,757.66

Item 24. Secured Debt is accrued property taxes for the prepetition period of Jan. 1, 2015 thru May 19, 2015 related to the airplane.

⁴

Item 17. Accounts Payable includes $3,591,717.34 of invoices from bankruptcy professionals that would otherwise be included in Item 20. Professional Fees.

⁵

Item 18. Taxes Payable includes 2015 property tax accessed on the airplane which remains unpaid.

⁶

Item 7. Prepaid Expenses includes $14,370.78 postage purchased for mailouts.

⁷

Item 20. Professional Fees reflects expenses allocated to LPI. MOR-6 reflects all bankruptcy professional fees of Life Partners Holdings and its subsidiaries.

⁸

Item 22. Other Postpetition Liabilities reflects a correction to the June 2016 figure previously reported here.

Monthly Operating Report

SUPPLEMENT TO

ACCRUAL BASIS-1

CASE NAME:	Life Partners, Inc.

CASE NUMBER:	15-40289 (Jointly Administered)

COMPARATIVE BALANCE SHEET

		SCHEDULE AMOUNT		MAY			JUNE			JULY
8. OTHER CURRENT ASSETS
8.	Pardo Family Holdings Trust (Advance to Price L. Johnson, PC)	$	25,000	$	25,000		$	25,000		$	25,000
8.	Pardo Family Holdings Trust (Advance to Kyle, Mathis & Lucas, LLP)	$	15,505	$	15,505		$	15,505		$	15,505
8.	ESP Communications Duplicate Payment	$	7,500	$	7,500		$	7,500		$	7,500
8.	Advance Trust & Life Escrow Services, LTA (Abandonment Premiums)			$	5,064		$	5,064		$	5,064
8.	Employee Advances	$	992	$	0		$	8,000		$	0
8.	Notes Receivable-Employee	$	477	$	476		$	470		$	470
8.
8.	TOTAL - OTHER CURRENT ASSETS	$	49,475	$	53,545		$	61,539		$	53,539
14. OTHER ASSETS - NET OF AMORTIZATION
14.	Woolly Mammoth & Other Prehistoric Artifacts	$	662,950	$	-		$	-		$	-		1
14.
14.
14.
14.
14.	TOTAL - OTHER ASSETS (Net of Amort.)	$	662,950	$	-		$	-		$	-
15. OTHER ASSETS
15.	TDL, LLC Misappropriation of Foreign Exchange Funds	$	257,395
15.	Advance on Premiums paid by PES on behalf of investors	$	13,083,062	$	16,840,949		$	17,396,547		$	17,805,837
15.	Advance on Premiums paid by ATLES on behalf of investors	$	136,291	$	751,058		$	823,657		$	1,028,880
15.	Allowance for Bad Debts			$	(5,483,317	)	$	(5,483,317	)	$	(5,483,317	)
15.	Overpayments of Commissions Receivable	$	36,881
15.	Deferred Income Tax Benefit			$	4,632,419		$	4,632,419		$	4,632,419
15.	Policy Purchase			$	123,591		$	123,591		$	123,591
15.	Capitalized Premiums on Policies Purchased			$	392,129		$	418,360		$	432,033
15.	Deposits			$	11,912		$	11,912		$	11,912
15.	TOTAL - OTHER ASSETS	$	13,513,629	$	17,268,742		$	17,923,169		$	18,551,354

POSTPETITION LIABILITIES
22.	Accrued Payroll			$	13,634		$	33,883		$	30,930		4
22.	Accrued Vacation			$	77,532		$	76,319		$	77,716
22.	Accrued 401K			$	3,343		$	1,211		$	1,689
22.	401K Loan			$	854		$	298		$	372
22.	Child Support & PR Garnishment			$	0		$	0		$	335
22.	US Trustee Fees			$	22,705		$	25,305		$	22,055		3
22.	Phoenix Life Insurance Settlement			$	313,835		$	0		$	0		2
22.	Loan From Maturities (Dkt 1127)			$	25,000,000		$	25,000,000		$	25,000,000
22.	Interest Payable on Loan From Maturities									$	956,566		5
22.	Deferred Revenue			$	5,027,515		$	5,027,515		$	5,027,515
22	TOTAL - OTHER POSTPETITION LIABILITIES			$	30,459,419		$	30,164,530		$	31,117,178

	¹	Sold pursuant to court order Dkt.1053
	²	Funds received from class action lawsuit against Phoenix Life Insurance regarding COI increases. These funds were distributed to position holder escrow accounts in June.
	³	This was previously shown as part of Line 20. Professional Fee Liability on page 1 of the Monthly Operating Report.
	⁴	June 2016 Accrued Payroll reflects a correction to the figure previously report here.
	⁵	Interest Payable on Loan from Maturities includes interest that pertains to previous periods as shown below:

November 2015	$	13,286.11	April 2016	$	97,217.58
December 2015	$	68,345.21	May 2016	$	109,303.86
January 2016	$	93,132.74	June 2016	$	166,340.39
February 2016	$	90,335.75	July 2016	$	211,867.28
March 2016	$	106,737.02

Monthly Operating Report

ACCRUAL BASIS-2

CASE NAME:	Life Partners, Inc.

CASE NUMBER:	15-40289 (Jointly Administered)

INCOME STATEMENT		APRIL			MAY			JUNE			JULY
REVENUES
1.	GROSS REVENUES
2.	LESS: RETURNS & DISCOUNTS
3.	NET REVENUE	$	0		$	0		$	0		$	0
COST OF GOODS SOLD
4.	MATERIAL	$	0		$	0		$	0		$	0
5.	DIRECT LABOR	$	0		$	0		$	0		$	0
6.	DIRECT OVERHEAD	$	12,748		$	13,808		$	11,801		$	15,438
7.	TOTAL COST OF GOODS SOLD	$	12,748		$	13,808		$	11,801		$	15,438
8.	GROSS PROFIT	$	(12,748	)	$	(13,808	)	$	(11,801	)	$	(15,438	)
OPERATING EXPENSES
9.	OFFICER / INSIDER COMPENSATION	$	114,842		$	14,808		$	20,347		$	37,406		2
10.	SELLING & MARKETING	$	0		$	0		$	0		$	0
11.	GENERAL & ADMINISTRATIVE	$	217,736		$	228,696		$	206,832		$	205,923
12.	RENT & LEASE	$	19,603		$	17,054		$	16,148		$	21,571
13.	OTHER (ATTACH LIST)	$	13,014		$	19,006		$	14,856		$	12,248
14.	TOTAL OPERATING EXPENSES	$	365,195		$	279,563		$	258,183		$	277,149
15.	INCOME BEFORE NON-OPERATING INCOME & EXPENSE	$	(377,943	)	$	(293,371	)	$	(269,984	)	$	(292,587	)
OTHER INCOME & EXPENSES
16.	NON-OPERATING INCOME (ATTACH LIST)	$	(6,689	)	$	(389	)	$	(4,024	)	$	(221	)	1
17.	NON-OPERATING EXPENSE (ATTACH LIST)	$	0		$	0		$	0		$	0
18.	INTEREST EXPENSE	$	0		$	0		$	18		$	956,566		3
19.	DEPRECIATION / DEPLETION	$	3,914		$	3,914		$	3,914		$	3,914
20.	AMORTIZATION	$	0		$	0		$	0		$	0
21.	OTHER (ATTACH LIST)	$	0		$	0		$	0		$	0
22.	NET OTHER INCOME & EXPENSES	$	(2,775	)	$	3,525		$	(92	)	$	960,258
REORGANIZATION EXPENSES
23.	PROFESSIONAL FEES	$	1,909,503		$	1,696,771		$	1,794,434		$	2,165,672
24.	U.S. TRUSTEE FEES	$	9,750		$	650		$	2,600		$	6,500
25.	OTHER (ATTACH LIST)	$	13,917		$	10,086		$	7,245		$	22,384
26.	TOTAL REORGANIZATION EXPENSES	$	1,933,170		$	1,707,507		$	1,804,279		$	2,194,557
27.	INCOME TAX
28.	NET PROFIT (LOSS)	$	(2,308,338	)	$	(2,004,403	)	$	(2,074,171	)	$	(3,447,402	)

	¹	See Supplement To Accrual Basis-2.
	²	April Officer/Insider Compensation includes $99,380.99 severance for a former officer. It does not include $13,787.08 of vacation offset against accrued vacation.
	³	See Supplement to Accrual Basis-1, Footnote 5.

Monthly Operating Report

SUPPLEMENT TO

ACCRUAL BASIS-2

CASE NAME:	Life Partners, Inc.

CASE NUMBER:	15-40289 (Jointly Administered)

INCOME STATEMENT		APRIL		MAY		JUNE		JULY
OTHER OPERATING EXPENSES
13.	Other Expense- Premium Expense	$	13,014	$	19,006	$	14,856	$	4,761
13.	Other Expense- BK Premiums	$	-	$	-	$	-	$	-
13.	Legal & Professional Expense							$	7,487
13.	TOTAL - OTHER OPERATING EXPENSE	$	13,014	$	19,006	$	14,856	$	12,248
NON-OPERATING INCOME
16.	Interest Income	$	2	$	0	$	3,864	$	-
16.	Gain on Sale of Egyptian Replicas
16.	Gain on Sale of Assets
16.	Other Income	$	6,687	$	388	$	160	$	221	1
16.	TOTAL NON-OPERATING INCOME	$	6,689	$	389	$	4,024	$	221
NON-OPERATING EXPENSE
17.		$	-	$	-	$	-	$	-
17.
17.
17.
17.	TOTAL NON-OPERATING EXPENSE	$	-	$	-	$	-	$	-
OTHER EXPENSE
21.	Franchise Tax	$	-	$	-	$	-	$	-
21.	State Income Tax-Other	$	-	$	-	$	-	$	-
21.
21.	TOTAL OTHER EXPENSE	$	-	$	-	$	-	$	-
OTHER REORGANIZATION EXPENSES
25.	Transcription Services	$	392	$	384	$	155
25.	Relativity Hosting	$	5,940	$	6,000	$	3,363	$	4,325
25.	Trustee Travel Expense	$	7,585	$	3,702	$	3,727	$	3,333
25.	TownHall Meeting Expenses							$	14,726
25.	Barbara Pope Contract Labor
25.	TOTAL OTHER REORGANIZATION EXP	$	13,917	$	10,086	$	7,245	$	22,384

April includes payment for Unclaimed Property received from the state.

Monthly Operating Report

ACCRUAL BASIS-3

CASE NAME:	Life Partners, Inc.

CASE NUMBER:	15-40289 (Jointly Administered)

CASH RECEIPTS AND DISBURSEMENTS		APRIL		MAY			JUNE			QUARTER ENDED JUNE 30, 2016		JULY
1.	CASH - BEGINNING OF MONTH	$	813,452	$	5,991,886		$	4,090,619				$	2,446,097
RECEIPTS FROM OPERATIONS
2.	CASH SALES									$	0
COLLECTION OF ACCOUNTS RECEIVABLE
3.	PREPETITION						$	21,500		$	21,500	$	21,500		4
4.	POSTPETITION	$	71	$	174,624		$	(600	)	$	174,094				5
5.	TOTAL OPERATING RECEIPTS	$	71	$	174,624		$	20,900		$	195,594	$	21,500
NON-OPERATING RECEIPTS
6.	LOANS & ADVANCES (ATTACH LIST)	$	7,921,515							$	7,921,515
7.	SALE OF ASSETS									$	0
8.	OTHER (ATTACH LIST)	$	28,808	$	908		$	5,434		$	35,150	$	909
9.	TOTAL NON-OPERATING RECEIPTS	$	7,950,323	$	908		$	5,434		$	7,956,665	$	909
10.	TOTAL RECEIPTS	$	7,950,394	$	175,532		$	26,334		$	8,152,259	$	22,409
11.	TOTAL CASH AVAILABLE	$	8,763,846	$	6,167,417		$	4,116,953				$	2,468,506
OPERATING DISBURSEMENTS
12.	NET PAYROLL	$	98,937	$	221,518		$	102,979		$	423,434	$	85,985		1
13.	PAYROLL TAXES PAID	$	38,572	$	83,221		$	34,054		$	155,847	$	33,909		2
14.	SALES, USE & OTHER TAXES PAID						$	18		$	18	$	150
15.	SECURED / RENTAL / LEASES	$	19,603	$	17,054		$	16,148		$	52,805	$	21,571
16.	UTILITIES	$	7,317	$	5,754		$	5,739		$	18,810	$	8,437
17.	INSURANCE	$	49,792	$	23,134		$	55,100		$	128,026	$	23,302		3
18.	INVENTORY PURCHASES									$	0
19.	VEHICLE EXPENSES	$	123	$	1,698		$	40		$	1,862	$	39
20.	TRAVEL	$	1,175	$	869		$	1,438		$	3,482	$	856
21.	ENTERTAINMENT									$	0
22.	REPAIRS & MAINTENANCE	$	3,090	$	5,818		$	3,931		$	12,839	$	3,047
23.	SUPPLIES	$	2,102	$	1,436		$	1,756		$	5,294	$	1,197
24.	ADVERTISING									$	0
25.	OTHER (ATTACH LIST)	$	1,002,759	$	654,548		$	993,419		$	2,650,726	$	747,224
26.	TOTAL OPERATING DISBURSEMENTS	$	1,223,471	$	1,015,049		$	1,214,623		$	3,453,143	$	925,718
REORGANIZATION EXPENSES
27.	PROFESSIONAL FEES	$	1,524,029	$	1,039,144		$	445,872		$	3,009,045	$	841,566
28.	U.S. TRUSTEE FEES	$	9,750							$	9,750	$	9,750
29.	OTHER (ATTACH LIST)	$	14,710	$	22,605		$	10,362		$	47,677	$	10,138
30.	TOTAL REORGANIZATION EXPENSES	$	1,548,490	$	1,061,749		$	456,233		$	3,066,472	$	861,454
31.	TOTAL DISBURSEMENTS	$	2,771,960	$	2,076,798		$	1,670,856		$	6,519,614	$	1,787,172
32.	NET CASH FLOW	$	5,178,433	$	(1,901,266	)	$	(1,644,522	)	$	1,632,645	$	(1,764,763	)
33.	CASH - END OF MONTH	$	5,991,886	$	4,090,619		$	2,446,097				$	681,334

	¹	Net Payroll for May includes $84,556.59 severance and vacation paid to a former officer.
	²	Payroll Taxes Paid for May includes $28,611.48 employee payroll taxes and $5,977.87 empoyer payroll taxes paid on severance and vacation paid to a former officer.
	³	June 2016 insurance includes $32,116.09 paid for D&O insurance normally paid by LPHI.
	⁴	Receipt of payment on settlement with Jacobowitz Family Trust per Docket 2126.
	⁵	This corrects a receipt classified here in May 2016.

Monthly Operating Report

SUPPLEMENT TO

ACCRUAL BASIS-3

CASE NAME:	Life Partners, Inc.

CASE NUMBER:	15-40289 (Jointly Administered)

CASH RECEIPTS AND DISBURSEMENTS		APRIL		MAY		JUNE		QUARTER ENDED JUNE 30, 2016		JULY

NON-OPERATING RECEIPTS-LOANS AND ADVANCES
6.	Loan From Maturities (Dkt 1127)	$	7,921,515					$	7,921,515
6.								$	-
6.	Total Loans and Advances	$	7,921,515	$	-	$	-	$	7,921,515	$	-

NON-OPERATING RECEIPTS-OTHER
8.	Flow Thru Premiums & Platform Fees	$	600	$	600	$	600	$	1,800	$	600
8.	Interest Income			$	102	$	4,020	$	4,122	$	178
8.	Other Inc-dividends on pd out policies					$	4	$	4	$	43
8.	Return of retainer	$	21,170					$	21,170
8.	Reimbursements & Refunds-COBRA insurance	$	351			$	29	$	380	$	15
8.	Reimbursements & Refunds-Unclaimed Property	$	6,687					$	6,687
8.	Reimbursements & Refunds-Utilities			$	206			$	206
8.	Reimbursements & Refunds-Postage					$	584	$	584	$	48
8.	Reimbursements & Refunds-Other					$	196	$	196	$	25
8.	Total Other Non-Operating Receipts	$	28,808	$	908	$	5,434	$	35,150	$	909

OTHER OPERATING DISBURSEMENTS
25.	Premiums Advanced	$	946,068	$	591,332	$	569,617	$	2,107,017	$	669,512
25.	Premiums-LPI Owned positions	$	14,027	$	14,700	$	21,514	$	50,241	$	18,389
25.	Bank Fees (Charged & Reversed)	$	807	$	1,982	$	5,134	$	7,923	$	1,845	¹
25.	Premiums-BK, Texas AG &Others					$	11,470	$	11,470	$	5,575
25.	Courier Services/Postage	$	1,352	$	2,010	$	1,164	$	4,526	$	1,700
25.	Employee Relations							$	-	$	686
25.	Flow Thru Premiums	$	600	$	600	$	600	$	1,800	$	600
25.	Legal Retainer			$	3,000			$	3,000			²
25.	Licenses & Fees	$	376	$	140	$	256	$	772	$	256
25.	Medical Records	$	1,454	$	3,718	$	1,813	$	6,986	$	1,670
25.	Medical Review Life Expectancy	$	2,350	$	1,350			$	3,700	$	225
25.	Outside Services	$	6,472	$	3,981	$	4,882	$	15,335	$	6,020
25.	Payroll Garnishment					$	303	$	303
25.	Payroll-401K deductions	$	9,236	$	8,508	$	12,736	$	30,480	$	8,676
25.	PES Operating Exp					$	863	$	863	$	300
25.	Software Licenses & Support			$	2,800	$	10,561	$	13,362
25.	Policy Administration Expense	$	9,658	$	9,875	$	28,661	$	48,194	$	21,760
25.	Subscriptions	$	309	$	551	$	10	$	870	$	10
25.	Trust Fees/Cost Reimbursement	$	10,050	$	10,000	$	10,000	$	30,050	$	10,000
25.	Distribution of Phoenix Life Insurance Settlement					$	313,835	$	313,835			³
25.	Equipment Purchased							$	-
25.	Employee Loan & Advances							$	-
25.	Total - Other Operating Disbursements	$	1,002,759	$	654,548	$	993,419	$	2,650,726	$	747,224

OTHER REORGANIZATION EXPENSES
29.	Transcription Services	$	392	$	384			$	776	$	155
29.	Relativity Hosting	$	9,098	$	13,332	$	5,703	$	28,133	$	5,703
29.	Trustee Travel Expense Reimbursement	$	5,221	$	8,888	$	4,659	$	18,767	$	4,279
29.	Barbara Pope Contract Labor							$	-
29.	Privilege Log Export							$	-
29.	Total - Other Reorganization Expenses	$	14,710	$	22,605	$	10,362	$	47,677	$	10,138

June 2016 includes $3,000 Bank Escrow Fees.

Retainer paid to Jardim, Meisner & Susser for assistance with obtaining death certificate from the state of New Jersey.

See SUPPLEMENT TO ACCRUAL BASIS-1 Footnote 2.

Monthly Operating Report

ACCRUAL BASIS-4

CASE NAME:	Life Partners, Inc.

CASE NUMBER:	15-40289 (Jointly Administered)

ACCOUNTS RECEIVABLE AGING		SCHEDULE AMOUNT		MAY		JUNE		JULY
1.	0-30	$	139,890	$	413,824	$	627,301	$	668,939
2.	31-60	$	279,914	$	943,516	$	414,998	$	572,875
3.	61-90	$	77,762	$	608,500	$	943,516	$	414,998
4.	91+	$	12,721,787	$	15,626,167	$	16,234,389	$	17,177,905
5.	TOTAL ACCOUNTS RECEIVABLE	$	13,219,353	$	17,592,007	$	18,220,204	$	18,834,716	¹
6.	AMOUNT CONSIDERED UNCOLLECTIBLE	$	5,163,790	$	5,483,317	$	5,483,317	$	5,483,317	¹
7.	ACCOUNTS RECEIVABLE (NET)	$	8,055,563	$	12,108,690	$	12,736,887	$	13,351,399	¹

AGING OF POSTPETITION TAXES AND PAYABLES

MONTH:

July 2016

		0-30		31-60		61-90		91+
TAXES PAYABLE		DAYS		DAYS		DAYS		DAYS		TOTAL
1.	FEDERAL	$	0							$	0
2.	STATE	$	0							$	0
3.	LOCAL	$	38,985					$	73,496	$	112,482	²
4.	OTHER (ATTACH LIST)									$	0
5.	TOTAL TAXES PAYABLE	$	38,985	$	0	$	0	$	73,496	$	112,482

6.	ACCOUNTS PAYABLE	$	74,148	$	1,639,113	$	170,120	$	1,797,324	$	3,680,706

STATUS OF POSTPETITION TAXES

MONTH:

July 2016

		BEGINNING		AMOUNT				ENDING
		TAX		WITHHELD AND/		AMOUNT		TAX
FEDERAL		LIABILITY		0R ACCRUED		PAID		LIABILITY
1.	WITHHOLDING	$	0	$	14,858	$	14,858	$	0
2.	FICA-EMPLOYEE	$	0	$	9,525	$	9,525	$	0
3.	FICA-EMPLOYER	$	0	$	9,525	$	9,525	$	0
4.	UNEMPLOYMENT	$	0					$	0
5.	INCOME	$	0					$	0
6.	OTHER (ATTACH LIST)	$	0					$	0
7.	TOTAL FEDERAL TAXES	$	0	$	33,909	$	33,909	$	0
STATE AND LOCAL
8.	WITHHOLDING							$	0
9.	SALES							$	0
10.	EXCISE							$	0
11.	UNEMPLOYMENT	$	0					$	0
12.	REAL PROPERTY	$	0					$	0
13.	PERSONAL PROPERTY	$	106,912	$	5,569			$	112,482	²
14.	OTHER (ATTACH LIST)	$	0					$	0
15.	TOTAL STATE & LOCAL	$	106,912	$	5,569	$	0	$	112,482
16.	TOTAL TAXES	$	106,912	$	39,478	$	33,909	$	112,482

¹	These amounts are reported in detail on SUPPLEMENT TO ACCRUAL BASIS-1 under Item 15. Other Assets.
²	The figures shown here do not include $4,504.20 accrued for the prepetition period of Jan. 1, 2015 thru May 19, 2015 and include an adjustment to the calendar year 2015 tax accrual resulting from the taxing authority changing the valuation of the aircraft held on 1/1/15. Taxes Payable older than 91 days are property taxes assessed on the airplane pending request for the tax to be reduced.

Monthly Operating Report

ACCRUAL BASIS-5

CASE NAME:	Life Partners, Inc.

CASE NUMBER:	15-40289 (Jointly Administered)

	MONTH:	July 2016
BANK RECONCILIATIONS

		Account #1		Account #2		Account #3
A. BANK:		Bank of Texas		Bank of Texas		Bank of Texas
B. ACCOUNT NUMBER:		4080		4091		2027		TOTAL
C. PURPOSE (TYPE):		Checking		Checking		Checking
1.	BALANCE PER BANK STATEMENT	$	985,789	$	132,059	$	2,350	$	1,120,198
2.	ADD: TOTAL DEPOSITS NOT CREDITED	$	178	$	1,948			$	2,126
3.	SUBTRACT: OUTSTANDING CHECKS	$	310,016	$	134,006			$	444,022
4.	OTHER RECONCILING ITEMS							$	0
5.	MONTH END BALANCE PER BOOKS	$	675,952	$	0	$	2,350	$	678,302
6.	NUMBER OF LAST CHECK WRITTEN		2519		2662		1002

INVESTMENT ACCOUNTS

		DATE OF	TYPE OF	PURCHASE		CURRENT
BANK, ACCOUNT NAME & NUMBER		PURCHASE	INSTRUMENT	PRICE		VALUE
7.	TD Bank, Life Partners, Inc. Acct 70-T202-01-2	unknown	MoneyMarket			$	0	²
8.
9.
10.
11.	TOTAL INVESTMENTS			$	0	$	0

CASH

12.	CURRENCY ON HAND	$	3,032	¹

13.	TOTAL CASH - END OF MONTH	$	681,334

¹	Item 12. Currency On Hand includes:	Petty Cash	$	522
		PayPal	$	2,326
		Prepaid Visa	$	185

Account has $0 balance and is closed.

Bank Accounts holding funds in trust from PES for premium escrows and maturities:

Cash Accounts
Premiums Collection Acct # 2016 (sweeps to acct #0027)	$	138,509.07
Premium Escrow Account FHPREA #0027	$	21,248,431.04
Maturities Account MEA #0019	$	13,384,657.64
	$	34,771,597.75

Monthly Operating Report

ACCRUAL BASIS-6

CASE NAME:	Life Partners, Inc.

CASE NUMBER:	15-40289 (Jointly Administered)

MONTH:

July 2016

PAYMENTS TO INSIDERS AND PROFESSIONALS

INSIDERS
		TYPE OF	AMOUNT		TOTAL PAID
NAME		PAYMENT	PAID		TO DATE
1.	Mark Embry	Salaries/Expense Reimbursement	$	14,443	$	200,773
2.	Advance Trust & Life Escrow Svcs	Premium Remittance/Cost Reimb	$	215,735	$	1,416,528
3.	Life Partners Holdings, Inc.	Rent & Return deposit in error			$	113,565
4.	LPI Financial Services, Inc.	Forward Platform Fees	$	8,255	$	10,353
5.	Purchase Escrow Services, LLC	Premium Remittance/Cost Reimb	$	300	$	4,460,563
6.	Colette Pieper	Salaries/Expense Reimbursement	$	0	$	263,671
7.	Debora J. Carr	Salaries/Expense Reimbursement	$	4,021	$	55,646
8.	TOTAL PAYMENTS TO INSIDERS		$	242,753	$	6,521,099

PROFESSIONALS											²
		DATE OF COURT							TOTAL
		ORDER AUTHORIZING	AMOUNT		AMOUNT		TOTAL PAID		INCURRED
NAME		PAYMENT	APPROVED		PAID		TO DATE		& UNPAID
1.	Asset Servicing Group	04/22/16	$	1,134,925			$	1,134,925	$	565,927
2.	Bridgepoint Consulting	04/15/16	$	1,172,526	$	46,840	$	1,172,526	$	652,595
3.	Epiq Bankruptcy Solutions	05/22/15	$	4,470,169	$	230,132	$	3,730,404	$	764,765
4.	Forshey & Prostok, LLP	04/28/15	$	154,409			$	154,409	$	0
5.	Kevin Buchanan & Associates	07/01/15	$	140,235			$	140,235	$	0
6.	Kim Hinkle, Attorney at Law	04/22/16	$	297,725	$	11,426	$	297,725	$	105,087
7.	MMS Advisors	03/25/16	$	246,992			$	246,992	$	0
8.	Munsch, Hardt, Kopf & Harr, P.C.	05/24/16	$	2,124,285	$	135,069	$	2,124,285	$	1,482,630
9.	Phillips Murrah	04/22/16	$	257,940			$	257,940	$	250,817
10.	Pronske Goolsby & Kathman, P.C.	05/05/15	$	128,618			$	128,618	$	0
11.	Thompson & Knight, LLP	06/03/16	$	9,956,051	$	388,889	$	9,956,051	$	9,510,355
12.	Tom Moran, US Trustee	12/18/15	$	11,850			$	11,850	$	1,074,282	³
13.	Smith, Jackson, Boyer & Bovard, PLLC	04/15/16	$	57,516	$	211	$	57,516	$	9,846
14.	Predictive Resources	04/22/16	$	374,603	$	13,398	$	374,603	$	151,540
15.	D3G Capital Management LLC/Lewis & Ellis Inc	05/24/16	$	172,540	$	3,000	$	172,540	$	55,385
16.	Barbara Pope	12/15/15	$	42,477			$	42,477	$	0	⁴
17.	Sutherland Asbill & Brennan LLP	03/25/16	$	0	$	12,602	$	12,602	$	36,515
18.	TOTAL PAYMENTS TO PROFESSIONALS				$	841,566	$	20,015,698	$	14,659,744

POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE

PROTECTION PAYMENTS

		SCHEDULED		AMOUNTS
		MONTHLY		PAID		TOTAL
		PAYMENTS		DURING		UNPAID
NAME OF CREDITOR		DUE		MONTH		POSTPETITION
1.	Pitney Bowes Global Financial Services, LLC	$	5,423	$	5,423	$	0	¹
2.	Pitney Bowes Global Financial Services, LLC	$	906	$	0	$	0	¹
3.	Johnnies Office Systems, Inc.	$	1,055	$	1,055	$	0
4.	Great America Financial Services	$	2,939	$	2,939	$	0
5.	PJC Investments, LLC	$	12,000	$	12,000	$	0
6.	TOTAL	$	22,323	$	21,416	$	0

These lease payments are quarterly, not monthly.

Total Paid To Date excludes out-of-pocket expense reimbursements on behalf of subsidiary debtors.

⁴

Amounts shown do not include employee/contractor payments.

Monthly Operating Report

ACCRUAL BASIS-7

CASE NAME:	Life Partners, Inc.

CASE NUMBER:	15-40289 (Jointly Administered)

MONTH:

July 2016

QUESTIONNAIRE

		YES	NO
1.	HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD?		X
2.	HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT?		X
3.	ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES?		X
4.	HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES THIS REPORTING PERIOD?		X
5.	HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE DEBTOR FROM ANY PARTY?	X
6.	ARE ANY POSTPETITION PAYROLL TAXES PAST DUE?		X
7.	ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES PAST DUE?		X
8.	ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE?		X
9.	ARE ANY OTHER POSTPETITION TAXES PAST DUE?	X
10.	ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS DELINQUENT?		X
11.	HAVE ANY PREPETITION TAXES BEEN PAID DURING THE REPORTING PERIOD?		X
12.	ARE ANY WAGE PAYMENTS PAST DUE?		X

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "YES," PROVIDE A DETAILED EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.

Questionnaire Item 5. Loans were recevied from maturities of Life Settlements per Docket 1127 related to financing.

Questionnaire Item 9. 2015 Property Taxes assessed on the airplane have not been paid pending request for the amount to be reduced.

INSURANCE

		YES	NO
1.	ARE WORKER'S COMPENSATION, GENERAL LIABILITY AND OTHER NECESSARY INSURANCE COVERAGES IN EFFECT?	X
2.	ARE ALL PREMIUM PAYMENTS PAID CURRENT?	X
3.	PLEASE ITEMIZE POLICIES BELOW.

INSTALLMENT PAYMENTS

TYPE OF			PAYMENT AMOUNT
POLICY	CARRIER	PERIOD COVERED	& FREQUENCY
Workers Compensation	Service Lloyds Ins. Co.	06/14/2016- 06/14/2017	$	330.00 /month

EX-99.3 4 v447413_ex99-3.htm EXHIBIT 99.3

Exhibit 99.3

	Monthly Operating Report
	ACCRUAL BASIS

CASE NAME:	LPI Financial Services, Inc.

CASE NUMBER:	15-40289 (Jointly Administered)

JUDGE:	Russell Nelms

UNITED STATES BANKRUPTCY COURT

NORTHERN & EASTERN DISTRICTS OF TEXAS

REGION 6

MONTHLY OPERATING REPORT

MONTH ENDING:	July		2016
	MONTH		YEAR

IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED STATES CODE, I DECLARE UNDER PENALTY OF PERJURY THAT I HAVE EXAMINED THE FOLLOWING MONTHLY OPERATING REPORT (ACCRUAL BASIS-1 THROUGH ACCRUAL BASIS-7) AND THE ACCOMPANYING ATTACHMENTS AND, TO THE BEST OF MY KNOWLEDGE, THESE DOCUMENTS ARE TRUE, CORRECT, AND COMPLETE. DECLARATION OF THE PREPARER (OTHER THAN RESPONSIBLE PARTY) IS BASED ON ALL INFORMATION OF WHICH PREPARER HAS ANY KNOWLEDGE.

RESPONSIBLE PARTY:

/s/ H. Thomas Moran II		Trustee
ORIGINAL SIGNATURE OF RESPONSIBLE PARTY		TITLE

H. Thomas Moran II		8/19/2016
PRINTED NAME OF RESPONSIBLE PARTY		DATE

PREPARER:

/s/ Paula Toy		Vice-President/Controller
ORIGINAL SIGNATURE OF PREPARER		TITLE

Paula Toy		8/19/2016
PRINTED NAME OF PREPARER		DATE

Monthly Operating Report

ACCRUAL BASIS-1

CASE NAME:	LPI Financial Services, Inc.

CASE NUMBER:	15-40289 (Jointly Administered)

COMPARATIVE BALANCE SHEET

		SCHEDULE AMOUNT		MAY			JUNE			JULY
ASSETS
1.	UNRESTRICTED CASH	$	1,744,873	$	1,289,326		$	1,391,470		$	1,433,706
2.	RESTRICTED CASH
3.	TOTAL CASH	$	1,744,873	$	1,289,326		$	1,391,470		$	1,433,706
4.	ACCOUNTS RECEIVABLE (NET)	$	2,741,107				$	0				²
5.	INVENTORY
6.	NOTES RECEIVABLE
7.	PREPAID EXPENSES
8.	OTHER (ATTACH LIST)			$	0		$	0		$	0
9.	TOTAL CURRENT ASSETS	$	4,485,981	$	1,289,326		$	1,391,470		$	1,433,706
10.	PROPERTY, PLANT & EQUIPMENT
11.	LESS: ACCUMULATED DEPRECIATION/DEPLETION
12.	NET PROPERTY, PLANT & EQUIPMENT	$	0	$	0		$	0		$	0
13.	DUE FROM INSIDERS	$	4,157,912									¹
14.	OTHER ASSETS - NET OF AMORTIZATION (ATTACH LIST)
15.	OTHER (ATTACH LIST)
16.	TOTAL ASSETS	$	8,643,892	$	1,289,326		$	1,391,470		$	1,433,706
POSTPETITION LIABILITIES
17.	ACCOUNTS PAYABLE			$	0		$	2,033		$	2,093
18.	TAXES PAYABLE
19.	NOTES PAYABLE
20.	PROFESSIONAL FEES			$	333,819		$	379,626		$	381,280
21.	SECURED DEBT
22.	OTHER (ATTACH LIST)			$	5,463		$	5,788		$	6,113
23.	TOTAL POSTPETITION LIABILITIES			$	339,282		$	387,447		$	389,485
PREPETITION LIABILITIES
24.	SECURED DEBT
25.	PRIORITY DEBT		unknown
26.	UNSECURED DEBT	$	9,001	$	1,062		$	1,062		$	1,062
27.	OTHER (ATTACH LIST)
28.	TOTAL PREPETITION LIABILITIES	$	9,001	$	1,062		$	1,062		$	1,062
29.	TOTAL LIABILITIES	$	9,001	$	340,343		$	388,508		$	390,547
EQUITY
30.	PREPETITION OWNERS' EQUITY			$	5,901,723		$	5,901,723		$	5,901,723
31.	POSTPETITION CUMULATIVE PROFIT OR (LOSS)			$	2,279,145		$	2,320,602		$	2,293,409
32.	DIRECT CHARGES TO EQUITY(ATTACH EXPLANATION)			$	(7,231,886	)	$	(7,219,364	)	$	(7,151,972	)¹
33.	TOTAL EQUITY			$	948,982		$	1,002,962		$	1,043,160
34.	TOTAL LIABILITIES & OWNERS' EQUITY			$	1,289,326		$	1,391,470		$	1,433,706

¹	This is Intercompany Due From Life Partners, Inc. reported on Schedule B Item 16 and shown above under Item 13. Due From Insiders.
²	The Debtor LPIFS records receipts on a cash basis and accordingly, does not carry receivable balances. The Schedules note a receivable balance as if receipts were recorded on an accrual basis as of the petition date.

	Monthly Operating Report
	SUPPLEMENT TO
	ACCRUAL BASIS-1

CASE NAME:	LPI Financial Services, Inc.

CASE NUMBER:	15-40289 (Jointly Administered)

COMPARATIVE BALANCE SHEET

		SCHEDULE AMOUNT	MAY		JUNE		JULY
POSTPETITION LIABILITIES
22.	US TRUSTEE FEES		$	5,463	$	5,788	$	6,113
22.	TOTAL OTHER POSTPETITION LIABILITIES		$	5,463	$	5,788	$	6,113

	Monthly Operating Report
	ACCRUAL BASIS-2

CASE NAME:	LPI Financial Services, Inc.

CASE NUMBER:	15-40289 (Jointly Administered)

INCOME STATEMENT		APRIL		MAY		JUNE		JULY
REVENUES
1.	GROSS REVENUES	$	583,423	$	103,198	$	105,988	$	42,877
2.	LESS: RETURNS & DISCOUNTS
3.	NET REVENUE	$	583,423	$	103,198	$	105,988	$	42,877
COST OF GOODS SOLD
4.	MATERIAL
5.	DIRECT LABOR
6.	DIRECT OVERHEAD
7.	TOTAL COST OF GOODS SOLD	$	0	$	0	$	0	$	0
8.	GROSS PROFIT	$	583,423	$	103,198	$	105,988	$	42,877
OPERATING EXPENSES
9.	OFFICER / INSIDER COMPENSATION
10.	SELLING & MARKETING
11.	GENERAL & ADMINISTRATIVE	$	6,295	$	827	$	325	$	375
12.	RENT & LEASE
13.	OTHER (ATTACH LIST)
14.	TOTAL OPERATING EXPENSES	$	6,295	$	827	$	325	$	375
15.	INCOME BEFORE NON-OPERATING INCOME & EXPENSE	$	577,127	$	102,371	$	105,663	$	42,502
OTHER INCOME & EXPENSES
16.	NON-OPERATING INCOME (ATTACH LIST)
17.	NON-OPERATING EXPENSE (ATTACH LIST)
18.	INTEREST EXPENSE
19.	DEPRECIATION / DEPLETION
20.	AMORTIZATION
21.	OTHER (ATTACH LIST)
22.	NET OTHER INCOME & EXPENSES	$	0	$	0	$	0	$	0
REORGANIZATION EXPENSES
23.	PROFESSIONAL FEES	$	81,831	$	72,703	$	63,439	$	68,567
24.	U.S. TRUSTEE FEES	$	325			$	325	$	650
25.	OTHER (ATTACH LIST)	$	845	$	606	$	443	$	479	¹
26.	TOTAL REORGANIZATION EXPENSES	$	83,001	$	73,309	$	64,207	$	69,696
27.	INCOME TAX
28.	NET PROFIT (LOSS)	$	494,126	$	29,062	$	41,457	($	27,193	)

¹	Expenses for Relativity Hosting, Privilege Log Export and Trustee Expense Reimbursement.

	Monthly Operating Report
	ACCRUAL BASIS-3

CASE NAME:	LPI Financial Services, Inc.

CASE NUMBER:	15-40289 (Jointly Administered)

CASH RECEIPTS AND DISBURSEMENTS		APRIL		MAY		JUNE		QUARTER ENDED 6/30/2016		JULY
1.	CASH - BEGINNING OF MONTH	$	610,137	$	1,192,573	$	1,289,326			$	1,391,470
RECEIPTS FROM OPERATIONS
2.	CASH SALES	$	583,422	$	103,198	$	105,988	$	792,608	$	42,877
COLLECTION OF ACCOUNTS RECEIVABLE
3.	PREPETITION							$	0
4.	POSTPETITION							$	0
5.	TOTAL OPERATING RECEIPTS	$	583,422	$	103,198	$	105,988	$	792,608	$	42,877
NON-OPERATING RECEIPTS
6.	LOANS & ADVANCES (ATTACH LIST)							$	0
7.	SALE OF ASSETS							$	0
8.	OTHER (ATTACH LIST)	$	506	$	326	$	139,447	$	140,278	$	57,971
9.	TOTAL NON-OPERATING RECEIPTS	$	506	$	326	$	139,447	$	140,278	$	57,971
10.	TOTAL RECEIPTS	$	583,928	$	103,524	$	245,435	$	932,887	$	100,849
11.	TOTAL CASH AVAILABLE	$	1,194,065	$	1,296,097	$	1,534,761			$	1,492,319
OPERATING DISBURSEMENTS
12.	NET PAYROLL							$	0
13.	PAYROLL TAXES PAID							$	0
14.	SALES, USE & OTHER TAXES PAID							$	0
15.	SECURED / RENTAL / LEASES							$	0
16.	UTILITIES							$	0
17.	INSURANCE							$	0
18.	INVENTORY PURCHASES							$	0
19.	VEHICLE EXPENSES							$	0
20.	TRAVEL							$	0
21.	ENTERTAINMENT							$	0
22.	REPAIRS & MAINTENANCE							$	0
23.	SUPPLIES			$	5,634			$	5,634
24.	ADVERTISING							$	0
25.	OTHER (ATTACH LIST)	$	1,167	$	1,138	$	143,291	$	145,595	$	58,287
26.	TOTAL OPERATING DISBURSEMENTS	$	1,167	$	6,771	$	143,291	$	151,229	$	58,287
REORGANIZATION EXPENSES
27.	PROFESSIONAL FEES							$	0
28.	U.S. TRUSTEE FEES	$	325					$	325	$	325
29.	OTHER (ATTACH LIST)							$	0
30.	TOTAL REORGANIZATION EXPENSES	$	325	$	0	$	0	$	325	$	325
31.	TOTAL DISBURSEMENTS	$	1,492	$	6,771	$	143,291	$	151,554	$	58,612	¹
32.	NET CASH FLOW	$	582,436	$	96,753	$	102,144	$	781,333	$	42,237
33.	CASH - END OF MONTH	$	1,192,573	$	1,289,326	$	1,391,470			$	1,433,706

¹	Total Disbursements includes the following amounts that are NOT disbursements, but are position holder receipts being forwarded to escrow accounts.

April 2016	$	505.36
May 2016	$	325.99
June 2016	$	139,794.03
July 2016	$	57,912.12

Monthly Operating Report

SUPPLEMENT TO

ACCRUAL BASIS-3

CASE NAME:	LPI Financial Services, Inc.

CASE NUMBER:	15-40289 (Jointly Administered)

		APRIL		MAY		JUNE		QUARTER		JULY
CASH RECEIPTS AND DISBURSEMENTS								ENDED 6/30/2016
NON-OPERATING RECEIPTS (OTHER)
8.	FLOW THRU PREMIUMS	$	506	$	326	$	139,447	$	140,278	$	57,971
8.	PREMIUMS RETURNED							$	0
8.	RECEIPTS TO BE FORWARDED TO LPI							$	0
8.	TOTAL NON-OPERATING RECEIPTS	$	506	$	326	$	139,447	$	140,278	$	57,971
OPERATING DISBURSEMENTS
25.	BANK FEES	$	662	$	812	$	325	$	1,798	$	375
25.	OVERPAYMENTS REFUNDED					$	3,172	$	3,172
25.	FLOW THRU PREMIUMS	$	505	$	326	$	139,794	$	140,625	$	57,912
25.	PREMIUMS RETURNED							$	0
25.	TRANSFER TO LPI BANK ACCOUNT							$	0
25.	TOTAL OPERATING DISBURSEMENTS (OTHER)	$	1,167	$	1,138	$	143,291	$	145,595	$	58,287

Monthly Operating Report

ACCRUAL BASIS-4

CASE NAME:	LPI Financial Services, Inc.

CASE NUMBER:	15-40289 (Jointly Administered)

ACCOUNTS RECEIVABLE AGING		SCHEDULE AMOUNT		MAY		JUNE		JULY
1.	0-30
2.	31-60	$	803,662
3.	61-90
4.	91+	$	1,937,445
5.	TOTAL ACCOUNTS RECEIVABLE	$	2,741,107	$	0	$	0	$	0
6.	AMOUNT CONSIDERED UNCOLLECTIBLE
7.	ACCOUNTS RECEIVABLE (NET)	$	2,741,107	$	0	$	0	$	0	¹

AGING OF POSTPETITION TAXES AND PAYABLES

MONTH:

July 2016

		0-30		31-60		61-90		91+
TAXES PAYABLE		DAYS		DAYS		DAYS		DAYS		TOTAL
1.	FEDERAL									$	0
2.	STATE									$	0
3.	LOCAL									$	0
4.	OTHER (ATTACH LIST)									$	0
5.	TOTAL TAXES PAYABLE	$	0	$	0	$	0	$	0	$	0

6.	ACCOUNTS PAYABLE	$	2,093							$	2,093

STATUS OF POSTPETITION TAXES

MONTH:

July 2016

		BEGINNING		AMOUNT				ENDING
		TAX		WITHHELD AND/		AMOUNT		TAX
FEDERAL		LIABILITY		0R ACCRUED		PAID		LIABILITY
1.	WITHHOLDING							$	0
2.	FICA-EMPLOYEE							$	0
3.	FICA-EMPLOYER							$	0
4.	UNEMPLOYMENT							$	0
5.	INCOME							$	0
6.	OTHER (ATTACH LIST)							$	0
7.	TOTAL FEDERAL TAXES	$	0	$	0	$	0	$	0
STATE AND LOCAL
8.	WITHHOLDING							$	0
9.	SALES							$	0
10.	EXCISE							$	0
11.	UNEMPLOYMENT							$	0
12.	REAL PROPERTY							$	0
13.	PERSONAL PROPERTY							$	0
14.	OTHER (ATTACH LIST)							$	0
15.	TOTAL STATE & LOCAL	$	0	$	0	$	0	$	0
16.	TOTAL TAXES	$	0	$	0	$	0	$	0

The Debtor LPIFS records receipts on a cash basis and accordingly does not carry receivable balances. The Schedules note a receivable balance as if receipts were recorded on an accrual basis as of the petition date.

Monthly Operating Report

ACCRUAL BASIS-5

CASE NAME:	LPI Financial Services, Inc.

CASE NUMBER:	15-40289 (Jointly Administered)

MONTH:

July 2016

BANK RECONCILIATIONS
		Account #1		Account #2		Account #3
A. BANK:		Bank of Texas
B. ACCOUNT NUMBER:		4069						TOTAL
C. PURPOSE (TYPE):		Checking
1.	BALANCE PER BANK STATEMENT	$	1,445,996					$	1,445,996
2.	ADD: TOTAL DEPOSITS NOT CREDITED	$	50					$	50
3.	SUBTRACT: OUTSTANDING CHECKS	$	12,339					$	12,339
4.	OTHER RECONCILING ITEMS							$	0
5.	MONTH END BALANCE PER BOOKS	$	1,433,706	$	0	$	0	$	1,433,706
6.	NUMBER OF LAST CHECK WRITTEN		1093

INVESTMENT ACCOUNTS

		DATE OF	TYPE OF	PURCHASE		CURRENT
BANK, ACCOUNT NAME & NUMBER		PURCHASE	INSTRUMENT	PRICE		VALUE
7.
8.
9.
10.
11.	TOTAL INVESTMENTS			$	0	$	0

CASH

12.	CURRENCY ON HAND	$	0

13.	TOTAL CASH - END OF MONTH	$	1,433,706

Monthly Operating Report

ACCRUAL BASIS-6

CASE NAME:	LPI Financial Services, Inc.

CASE NUMBER:	15-40289 (Jointly Administered)

MONTH:

July 2016

PAYMENTS TO INSIDERS AND PROFESSIONALS

INSIDERS
		TYPE OF	AMOUNT		TOTAL PAID
	NAME	PAYMENT	PAID		TO DATE
1.	Advance Trust & Life Escrow Services	Premium Remittance	$	15,340	$	192,582
2.	Purchase Escrow Services, LLC	Premium Remittance	$	0	$	3,803
3.
4.
5.
6.	TOTAL PAYMENTS TO INSIDERS		$	15,340	$	196,385

PROFESSIONALS											¹
		DATE OF COURT							TOTAL
		ORDER AUTHORIZING	AMOUNT		AMOUNT		TOTAL PAID		INCURRED
	NAME	PAYMENT	APPROVED		PAID		TO DATE		& UNPAID
1.	Asset Servicing Group	04/22/16	$	1,134,925			$	1,134,925	$	565,927
2.	Bridgepoint Consulting	04/15/16	$	1,172,526	$	46,840	$	1,172,526	$	652,595
3.	Epiq Bankruptcy Solutions	05/22/15	$	4,470,169	$	230,132	$	3,730,404	$	764,765
4.	Forshey & Prostok, LLP	04/28/15	$	154,409			$	154,409	$	0
5.	Kevin Buchanan & Associates	07/01/15	$	140,235			$	140,235	$	0
6.	Kim Hinkle, Attorney at Law	04/22/16	$	297,725	$	11,426	$	297,725	$	105,087
7.	MMS Advisors	03/25/16	$	246,992			$	246,992	$	0
8.	Munsch, Hardt, Kopf & Harr, P.C.	05/24/16	$	2,124,285	$	135,069	$	2,124,285	$	1,482,630
9.	Phillips Murrah	04/22/16	$	257,940			$	257,940	$	250,817
10.	Pronske Goolsby & Kathman, P.C.	05/05/15	$	128,618			$	128,618	$	0
11.	Thompson & Knight, LLP	06/03/16	$	9,956,051	$	388,889	$	9,956,051	$	9,510,355
12.	Tom Moran, US Trustee	12/18/15	$	11,850			$	11,850	$	1,074,282	²
13.	Smith, Jackson, Boyer & Bovard, PLLC	04/15/16	$	57,516	$	211	$	57,516	$	9,846
14.	Predictive Resources	04/22/16	$	374,603	$	13,398	$	374,603	$	151,540
15.	D3G Capital Management LLC/Lewis & Ellis Inc	05/24/16	$	172,540	$	3,000	$	172,540	$	55,385
16.	Barbara Pope	12/15/15	$	42,477			$	42,477	$	0	³
17.	Sutherland Asbill & Brennan LLP	03/25/16	$	0	$	12,602	$	12,602	$	36,515
18.	TOTAL PAYMENTS TO PROFESSIONALS				$	841,566	$	20,015,698	$	14,659,744	¹

POSTPETITION STATUS OF SECURED NOTES, LEASES PAYABLE AND ADEQUATE PROTECTION PAYMENTS

		SCHEDULED		AMOUNTS
		MONTHLY		PAID		TOTAL
		PAYMENTS		DURING		UNPAID
NAME OF CREDITOR		DUE		MONTH		POSTPETITION
1.
2.
3.
4.
5.
6.	TOTAL	$	0	$	0	$	0

Total Paid To Date excludes out-of-pocket expense reimbursements on behalf of subsidiary debtors.

Amounts shown do not include employee/contractor payments.

Monthly Operating Report

ACCRUAL BASIS-7

CASE NAME:	LPI Financial Services, Inc.

CASE NUMBER:	15-40289 (Jointly Administered)

MONTH:

July 2016

QUESTIONNAIRE

		YES	NO
1.	HAVE ANY ASSETS BEEN SOLD OR TRANSFERRED OUTSIDE THE NORMAL COURSE OF BUSINESS THIS REPORTING PERIOD?		X
2.	HAVE ANY FUNDS BEEN DISBURSED FROM ANY ACCOUNT OTHER THAN A DEBTOR IN POSSESSION ACCOUNT?		X
3.	ARE ANY POSTPETITION RECEIVABLES (ACCOUNTS, NOTES, OR LOANS) DUE FROM RELATED PARTIES?		X
4.	HAVE ANY PAYMENTS BEEN MADE ON PREPETITION LIABILITIES THIS REPORTING PERIOD?		X
5.	HAVE ANY POSTPETITION LOANS BEEN RECEIVED BY THE DEBTOR FROM ANY PARTY?		X
6.	ARE ANY POSTPETITION PAYROLL TAXES PAST DUE?		X
7.	ARE ANY POSTPETITION STATE OR FEDERAL INCOME TAXES PAST DUE?		X
8.	ARE ANY POSTPETITION REAL ESTATE TAXES PAST DUE?		X
9.	ARE ANY OTHER POSTPETITION TAXES PAST DUE?		X
10.	ARE ANY AMOUNTS OWED TO POSTPETITION CREDITORS DELINQUENT?		X
11.	HAVE ANY PREPETITION TAXES BEEN PAID DURING THE REPORTING PERIOD?		X
12.	ARE ANY WAGE PAYMENTS PAST DUE?		X

IF THE ANSWER TO ANY OF THE ABOVE QUESTIONS IS "YES," PROVIDE A DETAILED EXPLANATION OF EACH ITEM. ATTACH ADDITIONAL SHEETS IF NECESSARY.

INSURANCE

		YES	NO
1.	ARE WORKER'S COMPENSATION, GENERAL LIABILITY AND OTHER NECESSARY INSURANCE COVERAGES IN EFFECT?	X
2.	ARE ALL PREMIUM PAYMENTS PAID CURRENT?	X
3.	PLEASE ITEMIZE POLICIES BELOW.

INSTALLMENT PAYMENTS

PAYMENT AMOUNT

PERIOD COVERED

& FREQUENCY