LOS ANGELES, June 18, 2015 /PRNewswire/ — Los Angeles-based Pacific West Capital Group, Inc. has won a major legal victory in its litigation with the U.S. Securities and Exchange Commission (SEC). A U.S. district court judge denied the SEC’s request for a preliminary injunction that would have prevented Pacific West from offering life insurance investment products to qualified California investors. The court ruled that the SEC had not established the threshold issue of whether Pacific West’s life settlement arrangement constitutes a security under the federal securities laws and, therefore, the SEC had not demonstrated the likelihood of success on the merits for any of its claims.
“This is an important win for Pacific West. We believe that the life settlement products sold by Pacific West are regulated by the California Department of Corporations, not the federal government. While this ruling does not resolve the litigation, it enables Pacific West to continue offering its products in the State of California as it has done for the past 11 years while mounting a vigorous defense against the SEC’s allegations,” said Jason S. Lewis of Greenberg Traurig, LLP, counsel for Pacific West.
“We are very pleased with the court’s ruling and will continue to defend our products and business model against the SEC. We look forward to continuing to focus on providing quality service and believe strongly that life settlements are a valuable option for certain investors. Pacific West will continue to provide in-depth information to each current and prospective investor to make thoughtful and informed decisions,” said Andrew B. Calhoun IV, Pacific West’s founder and CEO.
Pacific West Capital Group is a California corporation that facilitates the sale of interests in life settlements to qualified California investors. PWCG was founded by Mr. Andrew B. Calhoun IV in 2004. Pacific West has an AAA rating from the Business Consumer Alliance, an A+ rating from the Better Business Bureau, and is a long-standing member of the Life Insurance Settlement Association.