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UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA - page 2 / 18

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2.

The Defendants have made numerous material misrepresentations and omissions

in connection with the sale of these plans. First, they have failed to disclose that they are using

as much as 90% of investor funds to pay exorbitant commissions to sales agents, administrative

fees and other costs of Pension Fund and PFA Assurance. Second, the Defendants have failed to

disclose

all

pertinent

mutual

fund

fees.

Third,

the

Defendants

have

misrepresented

their

relationships with major financial institutions and broker-dealers, falsely holding the institutions

out as trustees or custodians for investors’ funds. Fourth, they have misrepresented the nature

and value of the life insurance policies. Finally, the individual Defendants, Luis M. Cornide and

Robert de la Riva, have misappropriated at least $15 million of investor funds.

3.

In addition, the Commission believes the Defendants are currently selling or

transferring investor assets to others outside of the United States and therefore outside the

jurisdiction of this Court. Unless immediately restrained and enjoined, the Defendants will

continue to defraud investors and place investor funds at serious risk of diversion and theft.

Accordingly, the Commission seeks emergency relief against Defendants, including a temporary

restraining order, a preliminary injunction, an order freezing assets, and the appointment of a

receiver.

DEFENDANTS

4.

Pension Fund is a Florida limited liability company formed in June 1999, with its

principal office in Coral Gables, Florida. Pension Fund is the issuer of the retirement trust plans and

also serves as adviser and manager of the plans.

5.

PFA Assurance is a Cayman Islands corporation formed in 2002, with its

principal place of business in Coral Gables, Florida. Since early 2003, PFA Assurance has issued

2

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