Earl Parchia, an Orlando, Florida Pentecostal pastor, bought the policy from life insurance policy reseller, Life Partners Holdings, Inc. 13 years earlier.
In exchange for the company's offer of $150,000, Mr. Parchia
interest in the policy and dropped his
According to the story, Mr. Parchia
, along with other investors, purchased a 42.8% fractional ownership in a life insurance from Life Partners Holdings, Inc.
The company routinely resold whole and fractional life insurance policies which were sold by their original owners.
In many cases, the original policyholders sold their policies in exchange for access to the cash provided by life settlement companies like Life Partners Holdings, Inc. and investors like Mr. Parchia
However, Life Partners
reportedly told Mr. Parchia
would need pay nothing more than a "policy purchase deposit" of $199,099.
Within two years, however, they came to him and said that "an escrow account established at the time of the funding had been depleted".
This meant, the company told him, that he
would need to begin paying over $5,000 per year to maintain the policy.
According to the lawsuit, Mr. Parchia
"being totally at the mercy of Life Partners, Inc.
paid annual premiums of $5,679.76 since 1998.