On September 1, 1995, the SEC obtained a permanent injunction and other relief against ALIC Corporation in connection with its fraudulent sale of unregistered securities (in the form of debentures, preferred stock, and single premium deferred annuities). The SEC alleged that ALIC and its principals sold at least $14 million of these securities to approximately 1,000 investors, most of whom were senior citizens, and marketed the securities in a manner that led investors to believe they were purchasing insured certificates of deposit.
The Court appointed Allen Harvey as Receiver. By June 2001, the Receiver hopes to receive Court approval to establish a claims process. He will then notify all known aggrieved investors directly and will publish advertisements in the major newspapers throughout the State of Louisiana. Barring any need to litigate objection(s) to any claims, the Receiver hopes to then identify claimants within 60 days and make a distribution. At this time, the Receiver expects to distribute about $675,000, but notes that aggrieved investors hold approximately $14 million in claims.
If you have questions about the Receivership, please submit them in writing to:
ALIC in Receivership