Reliant Life Shares, LLC

Agency:
Description:

On July 19, 2023 Reliant Life Shares LLC (RLS) entered into a settlement agreement with the Department of Financial Protection & Innovation (DFPI). In December 2022, the DFPI issued a Desist and Refrain Order against RLS after finding the company used misleading tactics to sell securities in CA, in violation of the law.

Without admitting or denying allegations RLS agrees to:

• provide potential investors with actual performance reports for Respondent’s entire matured portfolio prior to accepting any investments;
• obtain an acknowledgment that this additional disclosure, or context document, has been discussed and understood by the potential investor;
• provide additional training and training materials for all of its agents on risks associated with investments in fractional life settlements and estimated life expectancy;


• meet with the specific agents identified by DFPI that are still with Respondent to address the identified statements and other representations regarding performance of life settlement interests, and to engage in an ongoing monitoring process;


• no longer use the “bell curve” image and statements found in its marketing materials that represent a generic distribution of life expectancy, and if RLS uses a “bell curve” illustration it will reflect their actual past performance.

For full details of the settlement visit the DFPI website where you can also access the Desist and Refrain Order information.

The Commission alleges RLS and its agents made untrue statements and omitted material facts to potential investors, including but not limited to the following:

a. That the risk of a premium call was close to zero or just about nil, that 97% of policies pay out on time, that policy payout periods would range anywhere from a few months to a maximum of five years and that very seldom did Reliant have someone living past the 5-year mark, and that the company was almost always right on life expectancy. These statements misrepresented, or omitted material facts, about RLS’s actual performance.

b. Stating in RLS’s sales materials that “The history of actual maturities for life settlement policies shows that, like a bell curve, approximately half of all policies mature before the estimated life expectancy date, and half after.” This statement implied to investors that Reliant had the same performance when it did not.

RLS was ordered to desist and refrain from offering or selling any security in California, including but not limited to fractionized investments in life settlement contracts, by means of any written or oral communication which includes an untrue statement of a material fact or omits to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading.

The Order is available on the DFPI website.

Date of Action: 10/19/2023