Orlando, FL 1/4/12 (StreetBeat) -- Shares of Life Partners Holdings Inc (Nasdaq: LPHI) lost more than a third of their value on Wednesday, a day after U.S. market regulators accused the company of an accounting fraud which overvalued assets on the firm's books, making it the biggest percentage loser on Nasdaq.The stock, which is active in the secondary market for life insurance, was down 33 percent at $4.27 in heavy volume trade.
On Tuesday, the U.S. Securities and Exchange Commission accused the Waco, Texas-based company and three of its executives of "systematically and materially" underestimating life expectancy estimates it used to price transactions.
Life Partners Holdings' Chief Executive Brian Pardo, who was among the three executives charged, had however, rejected the accusation and said in a statement that the company believes the SEC charges have "no merit" and intends to "vigorously defend" itself.
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