Senior Investors Say Seeman Holtz Reneged On Paying Them Millions

Boca Raton Insurance & Financial Services Firm Accused of Ponzi Scam

Many senior investors say that Seeman Holtz failed to pay out millions of dollars upon the maturity of their investments.

These investors contend that they had expected to make an interest of up to 8% yearly and garner fixed return rates of up to 18%. These investors bought $10K to $10M of “secured promissory notes” through National Senior Insurance and several affiliates

In June 2021, eight of them sued the company, doing business as Seeman Holtz, in Palm Beach Circuit Court. A class action securities case was also filed. The company is being accused of using unregistered dealers to promote and sell promissory notes to older investors.

The lead plaintiff who filed the case was a 76-year-old woman. She, along with her husband, used their life savings to buy the promissory notes. They did not receive repayment of their money upon the maturity of the promissory notes.

Corporate Monitor Submits Latest Report

Seeman Holtz is now accused of bilking over 1000 investors around the country. Investors lost hundreds of millions of dollars through these unregistered promissory note sales.

Returns were coming from purchasing, selling, and trading life settlement insurance policies. This was happening when investors’ money was being used in a scam like a Ponzi scheme. A corporate monitor was appointed to oversee the Florida firm. Read the monitor’s most recent report.

Unregistered Promissory Notes Misrepresented As Safe

Seeman Holtz sent sales representatives to many areas in Florida including Boca Raton, Delray Beach, and Boynton Beach. They allegedly marketed the promissory notes at issue as safe and income earning.

Prospective investors were told that the notes were invested in life insurance. This included buying new policies or paying for premiums. When, in fact, their funds were used to run Seeman Holtz and pay earlier investors their returns.

Those who bought promissory notes were told that their assets were protected. This was because a collateral agent was holding their insurance policy. It now appears that there was no collateral agent after 2015.

Seeman Holtz mixed the different policies together to its benefit. Upon redemption time, the company told investors it was dealing with financial woes.

The Florida Office of Financial Regulation sued the insurance company. In its civil lawsuit, the state regulator is accusing Seeman Holtz and related entities of misconduct and securities fraud. Cofounders Marshal Seeman, Eric Schwartz, and chief financial officer Brian Schwartz are mentioned in the lawsuit. Eric Schwartz committed suicide in June 2021.

Seeman Holtz sold securities to customers despite not being a registered broker in Florida. The firm also never registered with FINRA or the US SEC.

Knowledgeable Boca Raton Securities Fraud Lawyers

Our securities fraud attorneys are representing investors who lost money in Seeman Holtz’s alleged promissory note scam.

Contact Shepherd Smith Edwards and Kantas (SSEK Law Firm at at (800) 259-9010 so that we can help you explore your legal options during a free, no-obligation case consultation. You can also speak directly to our Florida promissory note fraud attorneys at (813) 560-2992.

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