Justice Dept. searches, shutters Imperial Holdings

September 27, 2011 - 4:10 PM

NEW YORK (AP) — Imperial Holdings LLC is shut down and trading in its stock halted following an FBI raid of its Boca Raton, Fla., office.

The FBI searched and closed the office at around 1 p.m.EDT, the Palm Beach Post reported.

An FBI spokesman in Miami said agents were acting on a search warrant issued by the U.S. Attorney's office in New Hampshire. The New Hampshire office did not immediately respond to inquiries on the case.

Trading was halted in the New York Stock Exchange-listed stock at about 1:45 p.m.

The company, which specializes in originating loans backed by life insurance policies, went public in February. Shares initially sold at $10.75, and have fallen steadily since. The stock was down 20 cents, or 3.1 percent, at $6.30 when it was halted.