Morpheus calls Abacus Global ‘another accounting scheme manufacturing revenue’

Morpheus Research said in a recently published report that Abacus Global (ABL) is “yet another life settlements accounting scheme manufacturing fake revenue by systematically underestimating when people will die.” According to Morpheus, its “investigation uncovered that Abacus’ ‘too good to be true’ returns, which drive Abacus’ revenues, are primarily manufactured by the systematic overvaluation of its assets through an opaque ‘mark to model’ accounting scheme that closely mirrors past blow-ups in the life settlements industry.” “Abacus boasts 30% returns with little to no risk, per investor presentations. Average industry returns in the space, however, hover around 12%, per trade publications and multiple experts we interviewed,” the report says, adding that Morpheus believes “Abacus faces immediate and significant write-down risk on its $446 million portfolio of life settlements policies and the $145 million in goodwill and intangibles associated with its Carlisle acquisition, as well as material litigation risk from Carlisle’s investors.” Shares of Abacus are down over 11% at $6.77 in Wednesday morning trading.