He illegally occupies the apartment of his late mother, the victim of a life annuity fraud

This is one of the latest consequences of a case that shook the world of life annuities more than 15 years ago. At the time, the unsavory US company Life Invest Fund 3, based in Fréjus, increased its annuity acquisitions in the Provence-Alpes-Côte-d’Azur region. The problem: the contracts and marketing methods were not up to current standards of what is practiced in the life annuity field, and the American company did not have serious guarantees. However, if the sale of a life annuity leads to the payment of the agreed capital (bouquet), it is usually also accompanied by a monthly annuity paid for the entire life of the seller.

In this story Mme Leteis sold his apartment in La Ciotat in 2009 to this American company. However, it quickly stopped paying the rumored annuities and, above all, found itself in liquidation in 2012, as France Bleu Provence recalls. According to the decision of the commercial court in Fréjus, according to the son of the victim, Adrien Leteis, justice would allow the sale of the apartment for 40,000 euros when it was worth more than 300,000. But it is true that nothing was specified as to the amount of capital that was originally repaid

Exploiting a weakness

With his illegal occupation of his mother’s apartment, Adrien Leteis intends to draw attention to what he considers to be “fraud, abuse of weakness in an organized gang”knowing his voice was never heard. However, a good expert on the life annuity market points out that this undoubtedly dramatic case, which claimed additional victims, remains quite specific. Most well-drafted life annuity sales contracts do include a termination clause. Just as a lease automatically terminates in the event of non-payment of rent, failure to pay an annuity cancels the sale of a life annuity if this clause appears in the contract. There is no doubt that some victims of Life Invest Fund 3 were able to recover their property in time and then sell it to a reputable person.

The second issue specific to this case concerns the judicial liquidation of the company that bought the property. In this particular case, the sellers of the property are no longer preferentially rewarded (they are not “first creditors”), they come after the state or after the employees. When in doubt, you should always make sure the buyer has solid warranties to reimburse the seller in the event of a problem. This is also a measure that generally notaries must take to secure this type of transaction. Let’s remember that while there are still occasional cases of life annuity scams relying on unscrupulous professionals, they can be counted on the fingers of one hand every year. Most companies specializing in the subject currently offer contracts that protect both the buyer and the seller.

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