Princeton, N.J.-based HMH Consulting reviewed 14,528 of Midwest’s estimates from 2004 to 2009, the draft report says. There were 1,395 observed deaths compared to 3,319 actuarially expected deaths, it said.

The audit of Hamilton, Ohio-based Midwest, written by actuarial firm HMH Consulting, was submitted as evidence by the Texas State Security Board’s enforcement division in an administrative hearing June 2 in the case of AGAP Life Offerings. Plano, Texas-based AGAP is accused by Texas regulators of selling unregistered securities, failing to register as a securities dealer, and misleading investors. The enforcement division provided a copy of Midwest Medical’s audit to The Life Settlements Wire.

Midwest’s life expectancy estimates have been criticized as being misleading and inaccurate by state and federal regulators in accusations against life settlement investment companies that have used them. Although the Texas State Securities Board did not mention Midwest in the AGAP order, the Texas Department of Insurance has issued an emergency cease-and-desist order against Midwest in relation to another life settlement investment firm, Retirement Value.

Source: Life Settlements Wire – Read Full Article

Here is a sample of a Midwest Life Expectancy Certificate…