The U.S. Securities and Exchange Commission (SEC) has wrapped up its investigation into Globe Life Inc. without taking any enforcement action. This news came on July 25, more than a year after the company faced serious allegations from short sellers claiming fraudulent insurance practices.
Globe Life received a confirmation letter from the SEC, indicating that the probe has ended. However, the company did not provide details about the investigation’s scope or whether it was linked to the allegations made by Fuzzy Panda Research and Viceroy Research in 2024.
The allegations were quite serious, focusing on Globe Life’s largest subsidiary, American Income Life (AIL). Reports accused AIL of forging customer signatures, creating fake policyholders, and issuing fraudulent policies to inflate sales figures. There were also claims that Globe Life executives were involved in a $43 million kickback scheme. Following these reports, the company’s stock took a significant hit.
In response to the allegations, Globe Life initiated an independent audit, which concluded that there were no major errors in its financial statements. The company acknowledged receiving an informal inquiry from the SEC in May 2024. Critics, including Viceroy, argued that Globe Life misled investors by downplaying the inquiry’s nature and timing.
As of now, Globe Life has not commented further on these matters. The conclusion of the SEC investigation may provide some relief to the company and its investors, but the shadow of the allegations still lingers.