The Ninth Circuit panel, which included Judges Ronald M. Gould, Richard R. Clifton, and Gabriel P. Sanchez, will now decide whether to uphold the district court’s order for the sales agents to return their commissions. The case has raised significant questions about the classification of life settlements as securities and could have implications for the broader life settlement market.
The SEC sued Pacific West and its owner, Andrew B. Calhoun IV, in 2015 over the sale of life settlements, alleging that the company used proceeds from new life settlements to fund previous sales. Under a 2018 settlement, Pacific West agreed to pay $750,000 in civil penalties without admitting to the allegations.
The case is U.S. Securities and Exchange Commission v. Barry et al., case number 23-2699, in the U.S. Court of Appeals for the Ninth Circuit.
