Life Partners Holdings, Inc.
(Nasdaq GS: LPHI), announced today that United States District Court for the Western District of Texas on Friday issued an order sanctioning the Securities and Exchange Commission for violating the Federal Rules of Civil Procedure and ordering that federal agency pay Life Partners Holdings $5,000 in attorney’s fees.
The order, which was the result of a motion for sanctions filed by Life Partners, finds that the Securities and Exchange Commission violated the Federal Rules of Civil Procedure by taking the deposition of a non-party witness without proper notice to Defendants, without conference with opposing counsel and without asking leave from the Court.
In its seven page order, the Court stated that “administrative agencies are unquestionably bound by the rules when they are parties in civil actions.” The Securities and Exchange Commission filed a civil action against Life Partners Holdings, Inc. and certain of its officers in January of this year. The company’s wholly owned subsidiary, Life Partners, Inc., was not named in the civil action.
The company has previously stated it believes the action is without merit and will vigorously defend itself and its officers.
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