The Securities and Exchange Commission announced Tuesday that it has charged Century City firm Pacific West Capital Group Inc. and its owner, Andrew Calhoun IV, with fraud related to the sale of life settlements to investors.

The SEC complaint alleges Pacific West used proceeds from the sale of new life settlements to pay premiums on old policies the firm had sold years before, making them appear to be successful investments. The agency said Pacific West has raised more than $100 million from life settlement investors since 2004.

A life settlement is an investment in a third party’s already-existing life insurance policy. Investors in these vehicles pay policyholders an amount that’s more than the cash surrender value of a policy but less than the death benefit. This allows the policy holders to get their hands on cash sooner. Investors continue paying the premiums and either wait until the person dies to collect the death benefit, or sell the policy to someone else.

A spokeswoman for Pacific West declined to comment to the Business Journal.