New Stream, Life Settlement Company, Under SEC Investigation

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New Stream Secured Capital Inc., a bankrupt company that buys life insurance policies and collects when the seller dies, is under investigation by the U.S. Securities and Exchange Commission, an agency attorney said.

Sheldon L. Pollock, an SEC lawyer, told U.S. Bankruptcy Judge Mary Walrath about the investigation today during a court hearing in Wilmington, Delaware. Pollock did not provide any details about the probe during the hearing and afterward declined to comment.