For Life Partners Holdings Shareholders (Nasdaq:LPHI), it has been one heck of a ride – but now it is over.

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Citron has to give credit where credit is due — CEO Brian Pardo has truly been a visionary in the life settlements industry.   Although he has had more than his share of critics, he has spent the past decade avoiding regulation while returning significant returns to LPHI stockholders.

All good things must come to an end, however, and now the final chapter is being written for Life Partners.  The SEC and Wall St. have decided to move in on life settlement industry and it is Citron’s opinion that this sea change will be at the expense of Life Partners Holdings. Until now the life settlement industry has been a financial product marred with controversy, but the new task force and the effects of commoditization are going to change the landscape – dramatically and permanently. Read more

Bad News for World Acceptance Corp.: The State-by-State Loophole Business is Now Going Out of Business

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In May, Citron research introduced readers to the curious case of World Acceptance Corp.  (NASADAQ:WRLD) a sub-prime lender doing business in approximately 900 locations mostly located in the South.  Citron has been quiet as of late because 1.  markets have turned indiscriminately positive 2. We were waiting to assess the prospects for regulation of sub-prime lenders.

Neither a bank nor a payday lender, World has built its entire business on loopholes — and therefore its operating region is limited to just 11 states where its been able to curry the favor of state legislatures to open the loopholes in state usury laws so it can make sub-sub-sub-prime loans at super-high rates.  Any form of federal law, which has never existed, would supercede the many loopholes enabling WRLD to operate in their niche states. Read more