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
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.
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
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.
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