Sedlar-Sholty, et al. vs. Acclivity West, LLC, et al. was filed in the Superior Court of the State of California, Los Angeles County on July 19, 2021, seeking damages for negligence, breach of fiduciary duty and intentional and negligent misrepresentation in connection with a scheme life investment Ponzi scheme.
Plaintiffs are many individual investors and trustees who have invested in life insurance policies, either independently or as part of their retirement programs. The defendants are Acclivity West LLC (âAcclivity Westâ), a California company, and several owners and employees of Acclivity West.
The scheme involved life settlement transactions, in which Acclivity West acquired life insurance settlements and then sold fractions of interests in those settlements to targeted investors, instead of holding these assets separately and using them for finance investor premiums. The plaintiffs allege that Acclivity West used the premiums from the sale of a policy provided by a group of investors to pay the premiums of other policies whose premiums were insufficient in the manner of Ponzi. In addition, the plaintiffs allege that the program is ongoing and that Acclivity West is financially unstable and unable to maintain its business operations.
As part of their claims, the plaintiffs seek more than $ 5,000,000 in compensatory damages, restitution of at least $ 4,500,000, punitive and exemplary damages, the imposition of a constructive trust and legal fees and expenses.