Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews

SuttonPark Important Update | Picture Becoming Clearer

by John Darer CLU ChFC MSSC CeFT RSP CLTC

I'll let the headline speak for itself, but more important are the details which shed more light on what has been at the root of SuttonPark's 

Morningstar DBRS Maintains Under Review with Negative Implications Designation on SuttonPark Transactions | Morningstar DBRS

Morningstar states that its rating actions are based on the following analytical considerations:

-- The maintaining of the URN designation is primarily due to the ongoing servicing transfer to Vervent and the finalization of the transfer of the lock box accounts to Axos Bank. Morningstar DBRS will continue to monitor the on-going servicing transfer and evaluate the impact on collateral performance and collections available to each transaction to resolve the URN designation. Morningstar DBRS continues to maintain dialogue with the restructuring agent to keep apprised of progress and timing of these operational transfers and collateral performance.

-- There was a steep drop in collections in November for all transactions, primarily attributed to the migration from the former lockbox to the replacement lockbox. This is expected to be a one-off event and collections should stabilize on future payment dates.

-- The generally high credit quality of annuity providers and their improved capitalization positions and risk-management frameworks, which have been enhanced since the global financial crisis of 2008-09.

-- The transactions' capital structure and form and sufficiency of available credit enhancement.

-- The transactions' performance to date with zero or minimal default

What is a Lock Box Banking?

Lockbox Banking: Definition, How It Works, Risks, and Cost

Lock Box Banking is used by many structured settlement annuity issuers as a central point to collect premium when structured settlements are funded. Lock boxes are also used by payment servicing companies to collect the payment from an an annuity issuer when a payment srervicing agreenent is in place to divide the payment between the annuitant and investors in a payment stream (or payment streams) that the annuitant has sold.

Who is Vervent?

Vervent - Providing Solutions At The Speed Of Service

Who is Axos Bank?

I indicated this might be happening in my December 6, 2024 post.  See SuttonPark Nightmare Update December 6, 2024 - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews be more 

Emphasis on the Underscore

It's a shame that SuttonPark created such needless upheaval for the payees affected by payment servicing agreements under its purview, which was exacerbated by an unprecedented information void, that I've devoted considerable pro bono time attempting to help fill for the benefit of consumers on both sides of the divide.

Meanwhile... SuttonPark Capital Earns F Rating from Better Business Bureau

SuttonPark Capital LLC | BBB Complaints | Better Business Bureau

Last updated January 21, 2025

SuttonPark Victim's Already Month Late Check from SuttonPark BOUNCED, Replacement Takes 5 Weeks!

by Structured Settlement Watchdog

Lloyd George (Alias) is a disabled American living in Nevada and an investor in structured settlement receivables. Mr. George thought he was buying a structured settlement. He actually bought a receivable, not a structured settlement or an annuity. 

In or about 2012 Mr. George purchased structured settlement receivables via SHP Financial from Plymouth Massachusetts.  The investment was in a structured settlement receivable from a structured settlement arising out of the settlement with the Measuring Life of a certain individual named Nicholas Cascio ("Cascio structured settelment receivable"). Mr. George says that SHP told him that the structured settlement payment were guaranteed. Now Mr. George is yet another person who bought an unregulated investment from a regulated financial adviser who has been experiencing the humanitarian crisis evolved from the SuttonPark Nightmare Payment Servicing delays.

The Sad Tale of the SuttonPark Tape (in reverse order)

What a "Poop Show"

1/2025  SuttonPark snafu due to "transposed numbers"

12/23/2024  Replacement payment for bounced check received 5 weeks later without reimbursement of $40 charge from bounced check

11/18/2024  SuttonPark check bounces, Mr. George incurs $40 fee.

10/24/ 2024  

10/3/2024

8/29/2024

SHP Marketing Practices Concerning Structured Settlement Receivables Were Questioned in 2014

In 2014 I questioned the SHP Financial marketing of structured settlement receivables to investors in a series of posts that highlighted how SHP Financial used the company logos of insurance companies such as American General and Allstate. SHP Financial did not originate the receivables and was acting as an outside marketing rep for receivables originated by Woodbridge Investments.

SHP Financial Using Life Insurer Marks to Sell Structured Settlement Payment Rights as Annuities - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews April 25, 2014

SHP Financial (shpfinancial) on Twitter  a contemporaneous screenshot capture of SHP Financial Twitter Feed showing how SHP used the logos of Allstate and American General to attempt to drive sale of investments that were not believed to be sanctioned by either of the insurance companies.

SHP Financial (shpfinancial) on Twitter 4-15-2014 screen with SHP using Prudential logo to pitch structured settlement receivables as "Matt says think of this #structuredsettlement as 15 year bank CD".  Not just like a CD, but as a CD.  It was grossly inaccurate.

Twitter / shpfinancial: "You're in good hands..." for ...  4-24-2014 screenshot where on 4-22-2014 SHP Financial used Allstate's trademarked tag line to insinuate Allstate's sponsorship of the structured settlement receivable they were pitching to investors.

Yelp Review March 3, 2014 from Bianca  "I have used this company to buy structured settlements (annuities). They have some of the best rates going. You can get a weekly email with current offers. They will meet you at your home or their office and answer all of your questions. They have a good staff, it's not just a one or two man operation. You can contact them anytime with your questions and will get timely advice".

It should be noted that Mr. George invested in the receivable via SHP in 2012.

Email from David Teittinen Director Sales and Operations at SHP Financial - Alternative Investments dated January 13, 2025 

"Hi Lloyd,

I do not know John Darer but I believe he has a website about structured settlements. I have reached out to Sutton Park (sic, it's SuttonPark) specifically on your situation again today  and am hoping to hear back soon. I know it continues to be extremely frustrating for you, as it is for many others. I work on this daily in the best interests of all of our affected clients and while progress is slow we are making some. Will continue to work on your behalf and will keep you up to date"

Nickle and Dime Fall Out for SuttonPark Victims

Keep track of all late fees that you have incurred due to late or missing payments from SuttonPark.

Examples

• Late payment penalties for mortgages or bankloans
• Late payments penalties from credit card companies

Make sure to include these if filing complaints with

• Consumer Financial Protection Bureau
• State Attorney General's Office
• Elder or Disabled Abuse Support Networks
• Disabled Support Networks
• Diary all attempts to contact, including dates and times.

 

 

 

 

 

Fitch Affirms Corebridge Financial ratings at A+ Stable

by John Darer CLU ChFC MSSC CeFT RSP CLTC

Fitch Ratings has affirmed Corebridge Financial's ratings at an A+, with a Stable outlook. Fitch Affirms Corebridge Financial's Ratings; Outlook Stable - MarketScreener

Corebridge provides structured settlement annuities for both qualified and non-qualified structured settlements through its subsidiaries American General Life Insurance Company (in all states except New York) and United States Life Insurance Company in the City of New York. Corebridge subsidiaries also writes Funding Agreements for use in non qualified assignments with a variety of applications.

Corebridge Financial, a multinational financial services company,  was created in 2022, as a spinoff from AIG Life & Retirement

This web site is not endorsed by, directly affiliated with, maintained, authorized, or sponsored by any insurance or other company referenced herein. All products, services and company names are the registered trademarks of their original owners. The use of any trade name or trademark is for identification and reference purposes only and does not imply any association, sponsorship or endorsement between the trademark holder and the operators of this web site.

 

New Leaderhip at Independent Insurance Group as Herrema takes over as Interim CEO

by John Darer CLU ChFC MSSC CeFT RSP CLTC

 

The leadership change at Independent Insurance Group was part of a strategic move to ensure continued growth and success.

While the official reasons for Michael A. Upchurch's departure haven't been publicly detailed, the appointment of Donald J. Herrema as the interim CEO suggests a desire for fresh leadership to navigate the company's future.

Under Mr. Upchurch's leadership, Independent Insurance Group achieved significant milestones, including consistent premium growth, reaching over $1.3 billion in total assets, and maintaining strong ratings from Egan-Jones and KBRA. The company aims to continue its mission of delivering innovative structured settlement annuities and services.  Home | Independent Life

Independent Life launched in 2018 received over $400 million in premium in 2024 in a year that saw the structured settlement industry production achieve a new record $9.48B in premium. Independent reached over $1.3 billion in total assets at the end of fiscal 2024, recording statutory profit for each of the 2023 and 2024 fiscal years, receiving and maintaining an A rating from Egan-Jones and an A- rating from KBRA since inception, establishing strong reinsurance relationships with Hannover Re and Sommerset ReIinsurance Ltd accordinug to its website.

 

AnnuityPaymentFreedom Pans for "Structured Settlement Planning" Leads With No Bona Fides

by Structured Settlement Watchdog

Oy, chocolate chip cookie, acai bowl and fish burrito loving lawyer Jovan A. Johnson, is now doing "Structured Settlement Planning" but only "earns money if a visitor contacts him (through his website) to sell annuity payments rights and completes such a transaction"?  Huh?

I think a few other structured settlement planners, settlement planners with credentials might have something to say about that.

An active member of the California bar, Johnson operates several websites and admits making money if a visitor contacts him to sell annuity payment rights. He also exploited the names and contact information for structured settlement brokers and firms on his sites, AnnuityPaymentFreedom and Paymaster.co, until it was exposed here.

Lest anyone has forgotten...

Structured Settlement Brokers Are Being Billboarded by San Francisco Lawyer Shilling Factoring - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews April 2, 2023

Why Annuity Payment Freedom is a Bit Like a San Francisco Sidewalk - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews February 6, 2022

Paymaster.Co Maintains Sloppy Structured Settlement Information | Needle Stays On Unreliable - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews

A Contrast of Factoring Shillers on "Structured Settlement Planning"

1a/ According to Annuity.org, the Florida based factoring shills for Conshohocken PA's CBC Settlement Funding  "Structured settlement planning is the process of creating a customized payment plan for an injured party after a legal settlement. The goal is to help the injured party meet their needs and goals"

1b. Contrast that with what Jovan Johnson says "We provide free, publicly accessible, financial information. We earn money if a visitor contacts us to sell annuity payments rights and completes such a transaction". [offers a check off box on a seeking information form]

If "we" is Jovan Johnson and the only way "we"(Johnson) get paid is "when a visitor to the site contacts him to sell annuity payment rights", how is that structured settlement planning?

2a. Microsoft Co-Pilot says

"Structured settlement planning refers to the process of designing a financial arrangement where a person receiving a legal settlement, typically from a personal injury claim, receives their compensation in a series of periodic payments over time instead of a single lump sum, allowing for tailored payouts to meet their future needs like medical expenses or income replacement, often with tax advantages; this is usually facilitated by a specialized consultant who works with both the plaintiff and defendant to structure the payments appropriately. 

2b. Says Johnson...

"Provide the best website and experience that we can for our visitors. This includes five areas by which we organize our work:

• creating a site experience that is easily navigable,
• publishing accurate, thorough, and digestible content**, 
• create resources that help people,
• answering questions that we anticipate our visitors may have, and
• providing great service for those who contact us and elect to engage us when selling their annuity payment rights.

Trust

We endeavor to earn your trust. We believe that providing content and resources upon which people can rely requires that we inspire trust.

How about being "Jovial" and not bogarting terms that have nothing to with what you're up to?

That just might inspire more trust. Own what you are.  

Jovan A. Johnson Mails It in on AnnuityPaymentFreedom.Net

1. "In order for a factoring company to purchase a structured settlement, they will work with the potential seller to analyze the annuity contract and gather information before providing a quote. Next, if the quote is accepted, court approval will be required before the annuity is sold" 

Comment:

The highlighted section immediately above is indicative of someone who cannot properly articulate (or chooses to improperly articulate) what structured settlement factoring is. Nobody who is receiving structured settlement payments can sell the annuity contract generating the payments. Even a contract lawyer like Jovan A.Johnson should know that. The companies who pay Jovan Johnson the fees he admits to earning can tell him that. 

Disclaimer:  Jovan A. Johnson, an active member of the California bar at time of publication, but holds no insurance or securities license. Download Individual Name Search Jovan Johnson. He should not be confused with Jovan Johnson the Atlanta based wealth management specialist orJovantia O. Johnson who at one time held a California Insurance license, but has been inactive since 2016. 

Our interest is seeing that consumers have the clearest path to accurate information about structured settlements.  see The Structured Settlement Watchdog® John Darer®

 

 

"Lost Income Taxable" in Puzzling Personal Injury Settlements Austin Law Firm Press Release

by Structured Settlement Watchdog

"Maximizing Compensation in Personal Injury Cases: An Accounting Perspective for Texans"

A press release with the above title, issued by an Austin Texas personal injury law firm, made the following claim on January 7, 2025:

"Some components involved in personal injury cases, including lost income, are taxable. The IRS considers lost income taxable, as it replaces wages subject to income tax. Similarly, punitive damages and settlement interest fall under taxable income".

What the IRS actually says regarding Damages for Lost Income in a Personal Physical Injury Case?

Prior to August 21, 1996, IRC Section 104(a)(2) did not contain the word "physical" with regard to personal injuries or sickness. The Code was amended (SBJPA, PL 104-188) to exclude from gross income "the amount of any damages (other than punitive) received (whether by suit or agreement and whether as lump sums or as periodic payments) on account of personal physical injuries or physical sickness".

The Service has consistently held that compensatory damages, including lost wages, received on account of a personal physical injury are excludable from gross income with the exception of punitive damages. Rev. Rul. 85-97 and also see Commissioner v. Schleier, 515 U.S. 323, 329-30 (1995).   Source: Tax implications of settlements and judgments | Internal Revenue Service Analysis section #3.

 

 

 

JG Wentworth Vikings Ditch Horny Head Toppers

by Structured Settlement Watchdog

In November 2023, I gave JG Wentworth a little playful ribbing about the inauthenticity of the horned hats that sat on the "Uncle Neds" of participants in their iconic Viking chorus belting  "877-Cash-Now". J.G. Wentworth Massive Costume Blooper Muddles Vikings with Order of the Water Buffalo - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews

and JG Wentworth has reponded Meet the Vikings - JG Wentworth. Well done JG Wentworth!

Someone at JG needs to clue in Wild Fox Tees though. Wild Fox Tees located at 941 Felts Parkway, Fort Mill, SC, 29715 displays the erstwhile tusk-decorated headpiece on an assortment of tribute merchandise. I have a structured settlement and I need cash now shirt, hoodie, sweater, long sleeve and tank top.

 

Did Vikings Wear Horned Helmets? 8 Myths Busted | HistoryExtra

Canard of the Week from MJ Settlements' Structured Settlement Annuity "Presto Change-o Total Bunko"

by Structured Settlement Watchdog

MJ Settlements, Inc. falsely claims  "When an original structured settlement annuity is sold, either partially or in full, it then becomes known as a Secondary Market Structured Settlement Annuity"
 

Just like that huh? In the immortal words of Carl Spackler, the groundskeeper at Bushwood Country Club "I have to laugh".

The original structured settlement annuity, which is a qualified funding asset, is never actually sold.

Ipso facto, original structured settlement annuities don't become anything else. Not even birds with arms.  They retain their individual qualities and characteristics even if certain payment rights are transferred lawfully to an investor in accordance with state and federal law.

via GIPHY    Birds with Arms

It's a pity that the Coral Springs Florida company can't properly articulate such a basic material fact about its own business, a fact that would be critical to investors in my opinion, especially vulnerable investors.

So why trust MJ Settlements when they say they offer their investors "the safety and guarantee of high yield Secondary Market Structured Settlement Annuity", when what they're seeling to investors is not actually an annuity, let alone a structured settlement annuity? 

Another Goober from MJ Settlements' LinkedIn

MJ Settlements Story    "Sam turned to MJ Settlements and discovered the power of Secondary Market Structured Settlements"

1. A purchase of structured settlement receivables is not equivalent to the purchase of a structured settlement, or an annuity.
2. A purchase of structured settlement receivables is not equivalent to the purchase of an insurance product. 
3. The purchase of structured settlement receivables does not make you "a party to a suit or agreement or to the worker's compensation claim or a person who has assumed the liability for such payments under a qualified assignment in accordance with (IRC) Section 130". 

IRC 5891 (c) (1) Structured settlement

The term “structured settlement” means an arrangement—

(A)which is established by—(i) suit or agreement for the periodic payment of damages excludable from the gross income of the recipient under section 104(a)(2), or (ii) agreement for the periodic payment of compensation under any workers’ compensation law excludable from the gross income of the recipient under section 104(a)(1), and (B) under which the periodic payments are—(i) of the character described in subparagraphs (A) and (B) of section 130(c)(2), and (ii) payable by a person who is a party to the suit or agreement or to the workers’ compensation claim or by a person who has assumed the liability for such periodic payments under a qualified assignment in accordance with section 130.

 

 

 

SuttonPark NEGLECTS to Pay Life Insurance on Life Contingent Payments | SuttonPark Victim Impact Story

by Structured Settlement Watchdog

The SuttonPark sparked humanitarian crisis continues. An irreplaceable Prudential life insurance policy used to hedge an investment in life contingent structured settlement payments is in on the precipice and set to lapse on January 5, 2025 because SuttonPark has not paid the premium when it was due December 5, 2024. And you guessed it, SuttonPark is not communicating with the annuitant who has a structured settlement being serviced by SuttonPark. 

SuttonPark Victim's Structured Settlement Established in early 1980s

Cindy Lou from Kalamazoo (Alias) entered into a structured settlement funded with a annuity issued by Metropolitan Life in the early 1980s. The settlement arose out of litigation for the wrongful death of her first husband in a work related explosion on October 29, 1978 in Rogers City in Presque Isle County Michigan .  Those were the days of super high interest rates and payments wre designed to pay monthly payments for the life of Cindy Lou, with a 4% increase each year. Cindy Lou is now 72 years old.

Over the course of time Cindy Lou from Kalamazoo entered into several structured settlement factoring transactions, selling all of her remaining certain payments and a portion of her life contingent payments through 2035. When she sold her life contingent payments, a life insurance policy was purchased from Prudential to hedge the position. The Prudential life insurance policy is owned by Cindy Lou and collaterally assigned to SuttonPark to the extent of its (or its investor's) interest. 

She had been dealing with Wanda Velasquez at SuttonPark for many years, and there had been no proper problem with SuttonPark's timely payment of the nanual premoum, but Wanda Velasquez is no longer there.

The life insurance policy serves a dual purpose

1. to protect SuttonPark and/or investor(s) in the event of Cindy Lou's premature death prior to receipt of all of the acquired structured settlement receivables they have an interest in; and
2. to leave the remainder of the insurance proceeds to Cindy Lou Kalamazoo's current husband in the event she dies prematurely.

The life insurance is irreplaceable at this stage. In addition,  overlooking the payment by SuttonPark could create a greater risk for the investor in life contingent structured settlement receivables on the other side of the Cindy Lou Kalamazoo deal, if Cindy Lou dies and also short Cindy Lou's husband. As I understand it, the annual premium due Prudential is $1,080.

Cindy Lou cannot afford the $1,080 on an already tight budget. She will be able to when the payments resume in 2035 (if living) and they will be over $4,000/month. I suggested she try and see if the premium mode can be changed to quarterly and make it more manageable.So far Prudential has said there is only a single payment mode. I've reached out to my contacts at Prudential.

SuttonPark and whoever is in charge, if there is anyone left who has a heart, please help the 72 year old lady out and pay the annual bill that was due December 5th, 2024 (as you always have until 2024). This is not a good look for SuttonPark and the structured settlement secondary market. 

What Are Life Contingent Structured Settlement Payments

Life contingent structured settlement payments are structured settlement payments that will cease upon the death of the Measuring Life.

What is a Hedged Position in Relation to Life Contingent Structured Settlement Receivables?

A hedged position is where an investor buys or is collaterally assigned an interest in a life insurance policy as collateral for their interest in life contingent structured settlement receivables.

What is a Collateral Assignment of a Life Insurance Policy

Collateral assignment of life insurance is a type of financial arrangement where a life insurance policyholder uses their policy as collateral for a loan. In this case, the life insurance policy is used to help raise cash from life contingent structured settlement receivables. 

 How it works

1. Loan/Structured Settlement Transfer Agreement: The policyholder and lender/factoring company/investor enter into a loan agreement/payment transfer agreement.

2. Assignment: The policyholder assigns the life insurance policy to the lender/factoring company/investor as collateral.

3. Death Benefit: If the policyholder passes away before repaying the loan, the lender/factoring company/imvestor receives the death benefit (or a portion of it) to cover the outstanding loan, payments tranferred to amount.

4. Remaining Benefit: Any remaining death benefit goes to the policy's beneficiaries after the loan is repaid.

If you are an investor in hedged life contingent structured settlement receivables being serviced by SuttonPark you will want to stay ahead of life insurance premium due dates, to avoid stumbling into an unhedged position due to SuttonPark's shambolic rooted humanitarian crisis.

SuttonPark Nightmare Continues. For Payees It's "New Year's Grieve"

by Structured Settlement Watchdog

It has been 2 weeks since the SuttonPark Voice Greeting was changed for the first time in almost 3 weeks on December 16, 2024. The recording stated that payments due end of November through December 1 were being released by direct deposit (only for those on direct deposit) and to allow for up to 72 hours for the payments to post at your bank. 

I recently spoke to a 75 year old Florida investor on direct deposit who had not received a payment for two months from SuttonPark. She depends on those payments. No meaningful discussion about payment servicing and what it is, why it is necessary, potential risks etc. Payment servicing needs to be thoroughly explained up front for both sellers and investors. Is there a back up servicer? This explanation should be part of the selling process.  

The longer this goes on the worse it's going to be for those companies without an efficient servicing arm. Why would any investment adviser acting in good faith, want to put their client through this nonsense?

MJ Settlements' Todd Lesk PERMANENTLY BARRED from FINRA

by Structured Settlement Watchdog

I Warned Consumers Back in 2014

In my March 14, 2014 blog MJ Structured Settlement Annuities in Deceptive Structured Settlement Marketing - StructuredSettlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews,

I called out Todd Lesk, CEO of what was then called MJ Structured Settlement Annuities for Deceptive Marketing. Todd Lesk was not selling stuctured settlement annuities to investors despite his company name. Lesk was selling structured settlement receivables to people seeking dependable income using what I have generally referred to as a scam label for more than a fifteen years.  It is indisputable that investments in structured settlement payment rights are not an investment in an annuity. 

"National Industry Leader" to Dead Phone Line in 3 Years I Observed in 2017

The MJ Structured Settlement Annuities Big Blooper - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews

Todd Lesk is the "proud CEO" of MJ Settlements in Coral Springs, Florida according to Lesk's LinkedIn profile retrieved December 29, 2024

According to Sunbiz.org, MJ Settlements, Inc.was established in May 2023, with Lesk's wife Ricia as President. The record shows an address at 934 University Drive Suite 425 in Coral Springs, FL 33071. The address is a Pak Mail store which offers mailbox rental services along with packing, shipping, and other business services.

What Lesk sold, and MJ Settlements continues to Advertise for Sale (as of December 27, 2024) as a Secondary Market Annuity, IS NOT an Annuity, let alone a Stuctured Settlement Annuity

The 2012 brochure which still bears the name MJ Structured Settlement Annuities, appears in the following link on the MJ Settlements website. Link to MJSSA - PDF Link goes directly to MJSettlements.com  Observant readers will notice a different number at the Pak Mail Coral Springs address (218) on the 2012 brochure available for download, compared to the one listed in the 2023 filing with the Florida Secretary of State (425) and accessible at sunbiz.org

The MJ Settlements website persistently refers to structured settlement receivables or payment rights as structured settlement annuities, which is inaccurate and misleading

"A secondary market structured settlement annuity allows individuals to invest in existing structured settlements that were initially set up for recipients through legal settlements, often involving medical malpractice or wrongful death lawsuits. Investors purchase these future payments, creating a guaranteed and predictable income stream, often with higher returns than traditional fixed-income investments. These annuities are backed by highly rated insurance companies, ensuring a secure and stable income source".

Lesk is from Long Island New York. Lesk's New York insurance license expired in October 2024. Under New York Insurance law, "an annuity is a contract between a purchaser and an insurance company" Life Insurance: Annuity Products in New York | Department of Financial Services

Under the plain language in New York law, what Lesk sold, or may have sold to New York consumers as a Secondary Market Annuity was not an annuity. The annuity itself was never for sale. The seller did not ever own the annuity and had no right to sell it under the settlement agreement or qualified assignment he or she would have signed at the time of settlement of their case. Structures 101.

Florida 627.4554 Suitability in annuity transactions.—

(3) DEFINITIONS.—As used in this section, the term:

(a) “Agent” means a person or entity required to be licensed under the laws of this state to sell, solicit, or negotiate insurance, including annuities. For purposes of this section, the term includes an insurer when no agent is involved.

(b) “Annuity” means an insurance product under state law which is individually solicited, whether classified as an individual or group annuity.

Furthermore as I reported in the 2014 above linked blog post, "according to the Florida Department of Financial Services, Todd Lesk, the CEO of then named MJ Structured Settlement Annuities, Inc. was licensed as an insurance agent in Florida but did not show an appointment with Genworth, Liberty Life, MetLife, New York Life, The Hartford or Presidential Life. He was not approved for structured settlements by all of the companies he attempted to represent he was". As I contemporaneously reported, MJ Structured Settlement Annuities website page displayed the trademarked logos of each of these companies in an apparent effort to create the appearance of "annuity legitimacy" as a honeypot to attract investors, where there was none. 

When the details of Lesk's Florida license were accessed through the public Florida database Licensee Detail, it reveals that Lesk is only appointed with a few carriers and only one issues structured settlement annuities. Not a single one of the current appointments is reflected in the deals currently offered for sale and Lesk is not appointed in Florida with any of the annuity issuers named in the deals read to close that are currently offered for sale on the MJ Settlements website. Of course, he wouldn't be would he? That's because they ARE NOT annuities.

Have the wheels come off the wagon for hot dogs selling people structured settlement receivables, misleading people into believing they were annuities?

From a spate of of complaints in Todd Lesk's FINRA file retrieved at time of posting Todd Michael Lesk - FINRA BrokerCheck:

• "1/20/2024 Statement of Claim alleges RR (Lesk) used his position of trust to provide a false layer of legitimacy to structured settlement activities"
• 2023  Without admitting or denying the findings, Lesk consented to the sanctions and to the entry of findings that he refused to provide information and documents and to appear for on-the-record testimony requested by FINRA in connection with its investigation into whether he recommended that his customer invest in a crypto asset offering away from Lesk's member firm.  

The wheels may have come off the wagon, but not off the expensive Blue Corvette Todd Lesk drives around town.

Todd Lesk is Permanently Barred From FINRA in ANY Capacity 

See Download 2023079873001 Todd Michael Lesk CRD No. 2788300 AWC gg (2023-1699489207210) 

The Internet is inundated with with ads from law firms from across the United States seeking business as a result

Examples:

• IMPORTANT NOTICE TO CUSTOMERS OF BARRED FINANCIAL ADVISOR TODD LESK AND LPL FINANCIAL
• Todd Lesk Barred Over Unapproved Securities Activities – Investor Recovery Options — Securities Lawyers Blog — November 11, 2024

Todd Lesk's troubles have also been the subject of interest of another watchdog.

• My Take On The Troubles Surrounding Broker Todd Michael Lesk And FINRA's Crackdown by financial writer and investigatve journalist Emily Carter, author of the " Fiscal Watchdog"    January 23, 2024

Why did Todd Lesk deceive people? How was he able to do so for an extended period regarding structured settlement receivables?

MJ Settlements Inc. Current Truckload of BS  (from website)

"A. Understanding if a Structured Settlement Annuity is for me? 

1. "Settlement Annuities can be purchased by:

• Individuals
• Retirement plans
• Corporations
• Foundations"

Comment  BS. Unless an individual or any of these entities is a self-insured defendant in a law suit, funding its future periodicpayment obligation from a settlement with a plaintiff or claimant, and is foolishly not doing a qualified assignment. 

2.  "When an original structured settlement annuity is sold, either partially or in full, it then becomes known as a Secondary Market Structured Settlement Annuity.  MJ Settlements offers their investors the safety and guarantee of high yield Secondary Market Structured Settlement Annuity".  

Comments This is total narishkeit* from MJ Settlements because MJ Settlements cannot sell an investor a structured settlement annuity.  A structured settlement annuity cannot be sold by an annuitant because they don't own it. If you have bought a structured settlement receivable from MJ Settlements and it says it's an annuity, send a copy of the "annuity" and the correspondence to the Consumer Financial Protection Board and the Florida Department of Financial Services.

*My Yiddishe Bubbie Yiddish Glossary (N to T) - My Yiddishe Bubbie

3. "A secondary market structured settlement annuity" is a fiction.  It has been expressly stated "Acquired structured settlement payment rights are not captured as an annuity or insurance product in statutory accounting. See National Association of Insurance Commissioners Statutory Issue Paper No. 160  (finalized April 6, 2019)  See my blog NAIC Statutory Issue Paper Confirms that Factored Structured Settlement Payment Streams Are Not Annuities or Insurance Products - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews  December 29, 2018. 

4. Patrick Hindert, the co-author of what is widely regarded as the seminal industry text Structured Settlements and Periodic Payment Judgments, wrote in September 2020 that these "are neither annuities nor structured settlements". 

5.  Not only that, but investors in structured settlement receivables are likely to be out of luck in the event of insolvency due to the 2017 Changes to the Life & Health Guaranty Associations Model Act that have been adopted by  majority of states. See my blog Structured Settlement Receivables Have Insolvency Risks Investors May Not Understand - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews  September 2, 2024

Also see States That Have Adopted the New (2017) Model Act; and

Florida §631.713(3)(q) Exclusion "This part does not apply to: ...(q) Structured settlement annuity benefits to which a payee, or a beneficiary if the payee is deceased, has transferred his or her rights in a structured settlement factoring transaction, as that term is defined in 26 U.S.C. s. 5891(c)(3)(A)."

The worst part of it for investors who were sold investments in structured settlement receivables years ago, who thought they were buying annuities, is that the Model Act is applied retroactive to the effective date of adoption of the 2017 Model Act provisions by a state; AND there's more...

Had Lesk paid attention... Bad News for Structured Settlement Investors as NAIC Encourages Adoption of Model Act #520 - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews  March 15, 2022

6. "MJ Structured Settlement, Inc. helps clients enhance their financial portfolios with high-yield, guaranteed income streams and CD replacements".

Comments  A CD and a structured settlement receivable have different risk profiles. A CD is FDIC insured. A structured settlement receivable is an unregulated product, has a far greater risk profile than a CD and It is not an insurance product. Investors in structured settlement receivables are NOT insured by the FDIC and in the majority of US states, is not covered by statutory protections that may be available to purchasers of legitimate insurance products and subject to the the likes of the SuttonPark Nightmare  Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews: SuttonPark Servicing

 

7. The SuttonPark Payment Servicing Nightmare, created a humanitarian disaster affecting investors and partial sellers alike, has serious implications for the future of the structured settlement secondary market.  I've spent more than 22 pro bono hours in the last month fielding phone calls and helping fill the information void. The part germane to this post is that with banking you have things called regulators. 

 

8. MJ Settlements contradicts itself in its own blogs. On the one hand it uses the term annuity in the large print to hook the fish, but in the FAQ section it alternates in the uses of the term structured settlement payment rights.

 

Does Todd Lesk or MJ Settlements Inc.have professional errors and omissions coverage?

• Again, from his IAPD complaint file this entry    "1/20/2024 Statement of Claim alleges RR (Lesk) used his position of trust to provide a false layer of legitimacy to structured settlement activities"

Lesk CANNOT contest that according to this

See Download 2023079873001 Todd Michael Lesk CRD No. 2788300 AWC gg (2023-1699489207210) 

NEXT...

Anyone Check the Math on MJ Settlements', Lesk's Offer Sheet? I Did and Here's What I Found

On December 27, 2024, I retrieved and reviewed the MJ Settlements offer sheet, which includes two items with apparent calculation errors that overstate the payout to a potential investor and  inaccurately states two annuity issuers in naming sources of payments on the respective receivables.

Fuzzy Math 1

Structured settlement receivable, item #2068, closing date 1/3/2025 requires an investment pf $96,291 and purports to pay 200 monthly payments of $1,946.88 from January 01, 2039, through August 1, 2055.  Lesk' MJ Settlements website projects the payout over 200 months to be $465,000. However the math appears off. 200 months times $1,946.88 equals only $389,376.. And if you run a program called Days Between Dates and include both the starting and ending dates it comes out to 199 months plus 1 day which means an even lower total of $387,429.12.

Lesk Missing Attention to detail 1

Lesk incorrectly lists the issuer as Berkshire Hathaway Life Insurance Company.  Just a bit more resourcefulness on the part of Lesk would have found the correct name was Berkshire Hathaway Life Insurance Company of Nebraska  BH Structures

Fuzzy Math 2

Structured settlement receivable, item #796-05, ready to closer now requires an investment of $36,860 and purports to pay 75 monthly payments of $2,500.00 from January 12, 2046, through March 12, 2052.  Lesk's MJ Settlements projects the payout over 75 months to be $247,500. However the math appears off. 75 months times $2,500.00 equals only $187,500. And if you run a program called Days Between Dates and include both the starting and ending dates it comes out to 74 months plus 1 day which means an even lower total of $185,000.

Lesk Missing Attention to Detail 2

Setting aside for a minute that what MJ Settlements is peddling are not annuiies, Lesk's MJ Structured Settlements; incorrectly lists the issuer as Prudential Life Insurance Company.  Just a bit more resourcefulness on the part of Lesk would have found the correct name was The Prudential Insurance Company of America as it has been since 1877.    Download Lesk Deal Table Final 12-27-2024 Payout Errata

Download Lesk Deal 796-5 Calculate Duration Between Two Dates 12-28-2024

Download Lesk Deal 2068 Calculate Duration Between Two Dates 12-28-2024

Learn more about John Darer's work as the Structured Settlement Watchdog

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The use of any trade name or trademark is for identification and reference purposes and does not imply any association, sponsorship or endorsement between any trademark holder and the operators of this site.

Last updated January 4, 2025

 

Can Structured Annuity Issuer Just "Refund" Annuity Premium to a Payee If They Change Their Mind?

by John Darer CLU ChFC MSSC CeFT RSP CLTC

"Whoa Nelly" accepted a structured settlement and, upon later reflection, felt she had been pressured by "Slick Ricky Pluckafiglio", the settlement adviser recommended by her lawyer, into accepting a structured settlement funded by an annuity issued by "Sauerkraut Mutual Life Insurance Company". Nelly wanted out.

Nelly then contacted Sauerkraut Mutual and reached Helga Brat. Brat, in turn conferred with managers Cecile Andouille and "Hans Gruberschmutz" and a decision was made to "refund" the premium paid to Sauerkraut Mutual, including any commission paid to "Slick Ricky Pluckafiglio".  Now that really is alot of heartburn to digest.

Does a Structured Settlement Have a Free Look Period Like Other Insurance?  The Shocking Misleading Answer Provided by AI

According to Microsoft Co-Pilot...

"A "free look period" on a structured settlement typically refers to a timeframe, usually between 10 and 30 days, where the recipient of a structured settlement can review the terms and decide to cancel the agreement without penalty, essentially getting a full refund of the settlement amount if they decide it's not suitable for their needs; this period allows them to carefully consider the details of the structured payments before committing to the arrangement, similar to how a new insurance policy might have a free look period. 

Example scenario:

• receives a $1 million settlement:

  After a car accident, John is offered a structured settlement with monthly payments over 20 years.
• 30-day free look period:

  John has 30 days to review the terms of the settlement, including the payment schedule, interest rates, and any potential tax implications. 
• Decision to cancel:

  If within those 30 days, John decides the structured settlement isn't a good fit for his needs, he can cancel the agreement and receive the full $1 million back as a lump sum. 

Key points about free look periods on structured settlements, according to Microsoft Co-Pilot:

• State regulations:

  The length of the free look period can vary depending on the state where the settlement is issued and the specific rules governing structured settlements. 

   
• Important to read details:

  During the free look period, it's crucial to thoroughly review the settlement documents and consult with a financial advisor to fully understand the implications of the structured payments. 

   
• No penalties for cancellation:

  If you decide to cancel during the free look period, you should not face any penalties or fees". 

   

  COMMENT:  Microsoft Co-Pilot gives an inaccurate  and conflated answer to the question of Structured Settlement Annuity Premium refunds to a Payee and should not be relied upon. Let's examine why.

Consider How Is a Structured Settlement is Established

After a period of negotiation, the Parties agree to settle the claim or lawsuit. A settlement is an agreement reached through compromise.

Parties may agree to a structured settlement as part of the consideration for the settlement of the lawsuit along with the other terms of the settlement.  Plaintiff's settlement adviser is often a part of that process and was the case in the Whoa Nelly settlement.

The terms are then memorialized in a Settlement Agreement and Release. What is a Settlement Agreement and Release    ?

A Settlement Agreement and Releasee is a legally binding contract between two more parties to resolve a dispute. 

Elements of a contract 

• Offer
• Acceptance
• Meeting of the Minds (Awareness)
• Consideration (Something of value exchanged)
• Definite Agreement (Specific terms outlined)
• Capacity (Legal ability to contract)
• Legality (Terms must comply with the law)     

A settlement agreement must meticulously outline all terms agreed upon. This includes, but is not limited to, the amount of compensation, payment structure, and any non-monetary provisions. The effectiveness of a settlement agreement hinges on its clarity. It is not simply an informal understanding; it is a formal arrangement that, once agreed upon, can be legally enforced.  

What Additional Elements Are Unique to a Settlement Agreement With a Structure?

When there is a structured settlement, the Settlement Agreement and Release is a contract that sets forth an obligation to make periodic payments to the Plaintiff (Payee) including the payment schedule, the assignee and annuity issuer, among other things. Without a contractual promise to pay periodic payments in exchange for a release of liability, there is no structured settlement. Please refer to the Structured Settlement Flow Chart below. 

Most Structured Settlements Involve a Qualified Assignment 

A qualified assignment is a contract executed between the Defendant (or the Defendant's Insurer) and the qualified assignment company, with the Plaintiff's consent (Step 2 in Flow Chart). The consent is found in the Settlement Agreement and Release, which is a contract between the Plaintiff and the Defedant (or the Insurer on behalf of the Defendant, its Insured). There are different types of qualified assignment agreements, some of which include signatures of the plaintiff, or their guardian. Regardless, the plaintiff will have consented to the qualified assignment and upon the assignment release Defendant and Insurers from the periodic payment liability. See What is a Qualified Assignment?

The qualified assignment serves an important purpose, which is to assign the obligation to make future periodic payments from Defendants (or their Insurers) to the qualified assignment company. The qualified assignment is beneficial to the process of reaching agreement, by enabling the Defendant or Insurer to offer inherently more value within its policy limits. 

Qualified Assignment Company is Buyer and Owner of Structured Settlement Annuity Contract

The plaintiff cannot buy a structured settlement annuity on their own. Where there is a qualified assignment, the qualified assignment company owns the annuity and has all rights of ownership. This is a material term any Settlement Agreement and Release where there is qualified assignment. Even in the even there is no qualified assignment, the party to whom the periodic payments are due is never the owner of the annuity contract and has no rights of ownership in the annuity contract.

Common Clause in Settlement Agreements Regarding a Payee's Right to Periodic Payments

"None of the Periodic Payments may be accelerated, deferred, increased or decreased and may not be anticipated, sold, assigned or encumbered. Any attemptsto do so will be void".  Some agreements may include "except as may be authorized by IRC 5891 and applicable state settlement protection acts".

How Does an Annuity Issuer "Refund Money" to a Payee?

A. Commutation?

A structured settlement commutation rider is an optional provision in a structured settlement that allows for the conversion of some or all future structured settlement payments into a lump sum. This conversion typically occurs at a specific event, such as the death of the annuitant, and is done according to a formula specified in the settlement agreement.

The primary purpose of a commutation rider is to provide liquidity for the beneficiaries. This can help pay estate taxes, settle Medicaid liens, or cover other post-mortem financial obligations. For example, if a structured settlement is paying into a Special Needs Trust (SNT), a commutation rider can ensure there are funds available to pay off any Medicaid liens upon the death of the beneficiary.

However, it's important to carefully consider the use of commutation riders, as they can sometimes lead to the unnecessary discounting of periodic payments, which might not be in the best interest of the beneficiaries. Each case should be evaluated individually to determine the most appropriate settlement planning strategy.

Commutation Riders first appeared in the late 1990s when  Estate tax exemptions were much  lower then they are today.  one important aspect of the favorable IRS Private Letter Ruling 9812027 obtained by Allstate Life Insurance Company included the provision that the terms had to be reflected in the original settlement documents and the annuity contract (i.e. not after the fact).

This would be even more clear many years later after a woman named Wanda Hammond died.  Wanda's structured settlement was established as part of the consideration for a wrongful death settlement. Her son was former NFL and Notre Dame running back Rodney Culver who died in the May 11, 1996 Valuejet crash in the Florida Everglades. The Estate of Wanda Hammond and New York Life Insurance Company got into a dispute. In this case, Wanda Hammond's heirs and the administrator of her estate wanted to commute the remaining structured settlement payments into a lump sum after her death. However, New York Life objected, stating that the necessary language for such a commutation wasn't included in the original settlement agreement and qualified assignment.

It should be noted that while Commutation riders are commonplace today, it was some time after Allstate introduced theirs before other structured annuity issuers followed. It should further be noted that the introduction of Commutation Riders was not retroactive.

In the Hammond case, the court ruled in favor of New York Life, meaning the Estate of Wanda Hammond couldn't compel the annuity issuer to pay out a lump sum. This case highlights the importance of having clear and specific language in settlement agreements if commutation is desired. See my May 26, 2020 blog on 4structures' Settlement News Network for more details.  Estate Cannot Commute Structured Settlement to Lump Sum IF...

B. Factoring?

What Notice Required to the Assignor that contracted with the Assignee to take over the Assignor's periodic payment obligation. 

I.R.C. § 5891 (a) "Imposition Of Tax — There is hereby imposed on any person who acquires directly or indirectly structured settlement payment rights in a structured settlement factoring transaction a tax equal to 40 percent of the factoring discount as determined under subsection (c)(4) with respect to such factoring transaction".

 

If an Annuity Issuer paid the full amount of the premium (including its agent's commision) plus the qualified assignment fee and AFTER the qualified assignment was executed in compliance with IRC 130(c), AND after the annuity was purchased by the qualified assignment company from the annuity issuer in compliance with IRC 130(d) and annuity issued. where the annuitant only has "the right to receive periodic payments that would represent a discounted present value wouldn't it?  Would it be deemed a factoring transaction? If there is an absence  of a "qualified order", wouldn't an excise tax apply? 

 

In light of the federal tax law created by H.R. 2884, Section 5891(b)(2) of the Internal Revenue Code of 1986 and related state legislation, in certain circumstances where a financial or medical emergency qualifies and meets court approval, some life insurance companies will consider permitting a Hardship Commutation to liquidate an immediate lump sum in exchange for the rights to future guaranteed structured settlement payments

Failure to Satisfy Section 130(c) Clause in Qualified Assignment Agreements

"If at any time prior to completion of the Periodic Payments, the Settlement Agreement is declared terminated in a final, non-appealable order of a court of competent jurisdiction (or in the case of determined in any such final order that the requirements of Section 130(c) of the Code have not been satisfied in connection with this Agreement: (i) the assignment by Assignor to Assignee of the liability to make the Periodic Payments, Assignee  shall be of no force or effect; (ii) Assignee shall be conclusively deemed to be acting as the agent of Assignor; (iii) the Annuity shall be owned by Assignor, which shall retain the liability to make the Periodic Payments; (iv) Assignee shall have no liability to make any Periodic Payments; and (v) the parties hereto agree to cooperate in taking such actions as may be necessary or appropriate to implement the foregoing".

IRC 130(c)(2)(B) Qualified assignment.  What Does It Say?

"For purposes of t his section, the term "qualified assignment" means any assignment of a liability to make periodic payments as damages (whether by suit or agreement), or as compensation under any workmen's compensation act, on account of personal injury or sickness (in a case involving physical injury or physical sickness)-

(B) such periodic payments cannot be accelerated, deferred, increased, or decreased by the recipient of such payments"

If the annuity issuer contracts with the payee does not work to refund the payments including the agents commission

So, if the annuity issuer simply "refunds" the sum of money to Whoa Nelly (includes the annuity premium, qualified assignment fee and the agent's 
commission, paid by the Defendant (or its Insurer) to the Assignee which bought and owns the Annuity) to the Payee, how does the qualified Assignee, which bought and owns the annuity, resolve its contractual obligation to the Assignor under the qualified assignment agreement? 

If the remedy under the qualified assignment agreement is a termination of the Settlement Agreement in a final nonappealable order by a court of law and an unwind of the qualified assignment and the Annuity being owned by the Assignor which retains the obligation to make Periodic Payments, can you see why this could get a bit messy AND how certain circumstances could make things Alice in Wonderland  "curiouser and curiouser".

Last updated December 26, 2024

 

 

How Many SuttonPark Servicing Victims Were Sold Investments as "Annuities" by Financial Planners?

by Structured Settlement Watchdog

The SuttonPark Payment Servicing nightmare is a full blown humanitarian crisis bleeding into the karma of the secondary market, leaving many with unreliable payments that are supposed to be reliable

Over the years the Structured Settlement Watchdog has posted warnings that acquired  structured settlement payment rights (structured settlement receivables) are not annuities and do not have the same protections as annuities in the event of insolvency.  There is a good chance that your investment is subject to payment servicing and if it that payment servicing is with Boca Raton based SuttonPark, a subsidiary of Miami based 777Partners, you may be experiencing payment delays that I have been posting about on this blog in the last 6-7 months with a dramatic increase since mid-November 2024. The Structured Settlement Watchdog first raised questions about what would happen in the event of bankruptcy of a structured settlement payment servicing company 15 years ago in 2009.

SuttonPark Payment Servicing Nightmare | Why is the Industry Still Dealing With 15 Year OId Questions? - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews

I am now researching the demographics of investors who invested in the structured settlement receivables that were sold to the investors as annuities (e.g. secondary market annuities, inforce annuties) in the approach by financial planners (including settlement planners) that have encountered the SuttonPark Nightmare Payment Servicing Delays. I want to know your stories.

Investors could be retirees, business owners through their pension plans sold by financial advisers, as well as former plaintiffs who were recommended such investments by their settlement advisers and attorneys who may have been recommended the investments on their behalf in support of petitions on behalf of minors to State Court judges.

Urgent Need to Raise Awareness About Payment Servicing of Structured Settlement and to Enhance Disclosures at the time of Sale

This research is crucial to raise awareness of the inherent risks in payment servicing that many SuttonPark victims may not have been fully aware. The research also aims to promote the creation and/or improvement of disclosures to partial sellers of structured settlement payment rights the disclosures made to underserved investors in structured settlement receivables.

Believe it or not I've spoken to investors who bought in 2010-2012 who can't get a return call from the person who got them into this mess and the person who got them into this mess is still alive!

 

SuttonPark Victim Update December 18, 2024 SuttonPark in "Yad Stick"

by Structured Settlement Watchdog

News from SuttonPark victim Jim Yad, the nice Puma Arizona man, 66.  Jim Yad has received his December 2024 payment from SuttonPark by direct deposit, just before tucking into a not so tasty lunch of well... a picture tells a thousand words.

You see for Jim, while December's money in, November's is not.  All together now "WHAT DA F?". Not only that I learned from Jim Yad today that he was short changed by $6 in August.

SuttonPark victims are encouraged to file a complaint with the Consumer Financial Protection Bureau and get their story on record with the Consumer Financial Protection Bureau.

Consider also filing a complaint with your state's Consumer Protection Bureau as well. And Percy Forde, if you're still there at SuttonPark, Jim Yad still thinks you're a good guy.

Should you just send a notarized letter to the annuity issuer to stop making payments to SuttonPark?

A company that bought a structured settlement annuity issuer (or possibly its TPA) is asking victims to send a notarized letter to the insurer to stop making payments to the payment servicer. Given that a portion of the payment belongs to an investor because the annuitant sold payments (hence the need for servicing in the first place), please consult a lawyer before proceeding.

What Can You Do?

1. File a Complaint about your experience with SuttonPark to the Consumer Financial Protection Bureau.

Submit a complaint | Consumer Financial Protection Bureau

2. File a Complaint with the State of Florida Consumer Protection Division

File A Complaint | My Florida Legal

District Settlement Finance Tries to Run Hocus Pocus Move in Connecticut Silly Mailer

by Structured Settlement Watchdog

Have you received Silly Mailers from Structured Settlement Factoring Companies?

Many structured settlement annuitants receive silly mailers from structured settlement factoring companies. Some of the silly mailers (and sons of silly mailers) are just ridiculously deficient and oh so silly. So we're going to roast a few of them like flaming chestnuts, figuratively speaking of course. Send in silly mailers you've received and we'll consider roasting them too!

Mr. Brown Receives Silly Mailer from District Settlement Finance

Mr. T Brown, an Oakville CT man, already working with JG Wentworth, received a hokey solicitation from a "Emily Jefferson", a "case specialist ", claiming that his "case status had changed" and attempted to create a sense of urgency by stating that he

  "must contact support team within 3 business days at 877-525-9231". Emily Jefferson does not appear to exist.

District Settlement Finance, lurking in the shadows, apparently attempted to horn in on the action, albeit too late, with the below displayed quasi-official looking nonsense in a Silly Mailer.

District Settlement Finance, based in Washington DC, flubbed the silly mailer by displaying that the Courts of "Waterbury County CT" were relevant to his transfer (and by implication, the District Settlement Finance silly mailer).  However, there is no such county in Connecticut.  Oakville CT, where Mr. Brown lives, is a neighborhood of Watertown and is in Litchfield County, CT.  On the other hand, Waterbury, where the Court is located, happens to be in New Haven County. Quack! Quack!

Counties in Connecticut

However, Waterbury is a Judicial District. See Connecticut Judical District Map and About CT Courts - Organization of the Courts - CT Judicial Branch. Way to show your lack of situational prowess, District Settlement Finance! Crikey!

District Settlement Funding Silly Mailer Sales Pitch is that Competitors Are Scammers and They Come to the Rescue

From the letter (see below), it appears to be a claim of their ability to recover fees from deals by incorporating them into new deal with supposedly lower-cost funds, but only if you engage in another transaction with them and meet their specific criteria. entire pitch seems aimed at making you feel though you were scammed by of their competitors, just to persuade you to another deal with them for minimal return.

Is it a 877-525-9231 a Cash Now Pusher or is it a Chic Wedding Planner?

877-525-9231 is the toll-free call-in number for the District Settlement Finance mailer.

Download 877-525-9231 district settlement finance - Google Search 12-17-2024

877-525-9231 is is also the toll-free number for Simply Chic Wedding in California

Download 877-525-9231 - Google Search Simply Chic Wedding and District Settlement same number huh 12-17-2024

Brown Transfer Disposition in Connecticut Superior Court Shows Brown Elected to Seek and Receive independent Professional Advice (IPA)

It's always wise to seek Independent Professional Advice before moving forward with a structured settlement transfer transaction.  Timothy Brown did seek advice as noted in the in the Order approving his structured settlement transfer to JG Wentworth.

Download Brown CT structured settlement transfer disposition showing he received Independent Professional Advice

District Settlement Finance Even Managed to Mess Up the Translation of "We Speak Spanish"

The proper way to say it is "Hablamos español". The Silly Mailers wrote " Nosotros Hablamas espanol which means "We speak more Spanish"

Last updated December 20, 2024

District Setlement Finance Silly Mailer

 

 

ING v 777 Partners, SuttonPark Capital et al. Complaint Filed 10/17/2024, A Month Before Hell

By Structured Settlement Watchdog

SuttonPark Capital and SuttonPark Servicing named Defendants in a lawsuit filed by ING Capital in October 2024

Less than a month before hell was wrought on the lives of souls forced to deal with SuttonPark many years ago, by virtue of selling a portion of their structured settlement payments, a complaint was filed on October 17, 2024, seeking to recover more than $28 million in  loan proceeds that ING Capital advanced to an entity named Sierra 2016, LLC, based on a fraud that the defendants have been alleged to have perpetrated in the following legal complaint filed in the United States District Court for the Southern District of New York.

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK

ING CAPITAL LLC,
Plaintiff,
v.
777 PARTNERS LLC, 600 PARTNERS LLC, SUTTONPARK CAPITAL LLC, SUTTONPARK SERVICING LLC, JOSH WANDER, STEVEN PASKO, and FREDERICK LOVE,  Defendants.

Civil Action No.1:24-cv-07913-JGK

The complaint against SuttonPark Capital LLC et al, by ING, includes the following counts:

I       Breach of the Credit Agreement Against SuttonPark Servicing;

II      Breach of the Servicing Agreement Against SuttonPark Servicing;

III     Indemnification Under the Servicing Agreement Against SuttonPark Servicing;

IV     Breach of the Origination Agreement Against SuttonPark Capital;

V      Fraud Against all Defendants;

VI     Aiding and Abetting Fraud Against the Individual Defendants and the 777 Defendants;

VII    Unjust Enrichment Against SuttonPark Capital, 777 Partners, 600 Partners, Pasko and Wander;

VIII   Failure to Provide Information Against SuttonPark Servicing;

IX     Intentional Fraudulent Transfer Against SuttonPark Capital and the 777 Defendants;

X      Constructive Fraudulent Transfer Against SuttonPark Capital and the 777 Defendants

Read the full ING Capital Complaint  Download Complaint ING Capital v 777 Partners,  SuttonPark Servicing, SuttonPark Capital et al.

Why is the ING Capital LLC lawsuit Important for Victims of the SuttonPark Nightmare to Know?

It is alleged that ING Capital transferred over $28 million to the Defendants in 2022, with the expectation of collateral linked to structured settlement receivables. Although it currently impossible to identify which receivables are associated with which payee experiencing delays, it is important to pay attention.

Can't You Just Call the Annuity Issuer or Qualified Assignment Company and Tell Them to Stop Making Payments to the Payment Servicing Company?

You can contact the annuity issuer or qualified assignment company, and reach a compassionate representative (such as one at American General, as reported by a caller to me yesterday), they may able to help you. However, they could be restricted by an Order that fixes the payee of the check that goes to SuttonPark, the payment servicer. Refer to the answer to the next question for more details.

Why Can't the Annuity Issuer or Qualified Assignment Company Just Stop Making Payments to SuttonPark?

Under state law in all states, a structured settlement transfer must be preceded by a Court Order approving the transfer of structured settlement payment rights, under which a judge must make a finding that the structured settlement transfer is in the best interest of the payee, the Transfer Order may also have directed the payments to a specific "assignee", for example a servicing company such as SuttonPark.  If a life insurance company simply stops payments it may be violating the court order.  This contributes to what making it complicated with the SuttonPark situation.  

The Genex Capital 2022 communication to payees on transfers originated by Genex, originally serviced by Security Title Agency, then Loancare and which ended up at SuttonPark, is an excellent example to illustrate the complexity of the issues with payment servicing when weighing potential solutions

Genex was concerned about the "poor state of STA historical recordkeeping have resulted in significant and chronic payment delays being experienced by our valued clients. In short,  Genex no longer has confidence in the servicing arrangement originally attached to your investment. Many of you have contacted us over the past several months expressing concern and seeking our assistance in obtaining your missing payments. The situation is not acceptable. To keep our clients out of harm's way, we considered three potential options

1. "Commence litigation against STA and Loancare seeking damages for breach of contract on your behalf (Downside-potential aggravated payment delays and costly protracted litigation)
2. Transfer the more than 478 active STA accounts to another Genex approved servicing company (Downside-potential further payment disruption while Genex obtains amended court orders naming a replacement servicing entity.)
3. Offer our value (sic) clients a one-time Genex subsidized Recall/Repurchase option to permanently eliminate this unforeseen risk and provide liquidity to you".

Underline and highlights added for emphasis.  

What is the Consumer Financial Protection Bureau? 

The Consumer Financial Protection Bureau (CFPB) is a United States government agency dedicated to making sure you are treated fairly by banks, lenders and other financial institutions. The CFPB home page includes the following message which claims that the CFPB is:

"On your side through life’s financial moments"

Give it a spin!  

Submit a complaint | Consumer Financial Protection Bureau

#rohitchopra

SuttonPark Servicing Delays | Who is Going to Pay for the Life Altering Damages Accruing?

by Structured Settlement Watchdog

In SuttonPark, the structured settlement secondary market is currently grappling with a severe humanitarian crisis affecting people all across America.

This could potentially have a detrimental impact on secondary market operations and may even lead to a contraction of the marketplace if there isn't a swift improvement, beginning with transparent and direct communication.

• Victims of SuttonPark are accruing late charges on their obligations due to delayed payments, which they rely on to pay their obligations.
• The delay or absence of these payments puts them at risk of losing their homes, instilling fear and uncertainty.
• The psychological impact on these individuals is significant. Having spent over 22 hours since mid-November in conversation with many affected, the sadness and injustice of their situation is clear.
• The SuttonPark payment servicing victims should be enjoying the holidays. Instead the humanitarian crisis has continued through Thanksgiving, dampening the lead up to Christmas, Hannukah and Kwanzaa

They deserve to be treated with respect. As of this posting, the recorded message from SuttonPark has remained unchanged since November 26, 2024, and lacks credibility due to an unfulfilled promise of payments within 72 hours as stated in SuttonPark's recording. The remaining three employees at SuttonPark doing servicing are undoubtedly overworked and striving to do their best, yet it is logically unfeasible for them to process all the payments or catch up. It is simply impossible.

B Riley Financial is not a receiver according to an industry source in the secondary market and some sources are saying that the contract with B Riley ends at year end. What happens next? Who is running the effing show now? Who fired SuttonPark servicing employees?

While I appreciate exceptional efforts by certain members of the structured settlement secondary market that I've spoken to (they know who they are), there has been no public statement by the National Association of Settlement Purchasers.  Make one NASP.  Put it on your website.  The last new update was in 2021?  National Association of Settlement Purchasers - National Association of Settlement Purchasers

Fred Love, was President of NASP in 2023 and  Chair of its 2023 Annual Conference committee along with Melissa Lerma, his colleague at the time from SuttonPark Capital. 2023_NASP_Conference_at_a_Glance.pdf

The SuttonPark situation needs an inquest. There is no area of the financial markets where a regulator would allow this situation to continue the way SuttonPark has.

 

 

 

SuttonPark Payment Servicing Nightmare | Why is the Industry Still Dealing With 15 Year OId Questions?

by Structured Settlement Watchdog

Following are links to 3 blog posts I published between  August and October 2009 (more than 15 Years ago!) while figuratively "banging the pots and pans" on the structured settlement payment servicing. Now a new pressing question to add to the unanswered ones: why haven't critical issues surrounding structured settlement payment servicing been thoroughly addressed in 15 years?

Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews: Bruce K. Akerly

October 10, 2009

Structured Settlement Payment Servicing | Structured Settlement and Factoring Camps Go "Ostrich" - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews

October 6, 2009

Who Will Answer the Question on Structured Settlement "Servicing" by Factoring Companies? - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews

August 12, 2009

FACT: SuttonPark came into existence less than a year following the publication of these posts and a video podcast with Bruce Akerly and I that was followed by Bruce's paper and his presentation at the National Association of Settlement Purchasers 2009 Annual Meeting.

 

 

SuttonPark Servicing Victim Impact Story December 11, 2024 Yuma Arizona Retiree, 66

by Structured Settlement Watchdog

Jim Yad ("Nickname"), 66, is a retired homebuilder from Yuma Arizona who is unfortunately caught up in the SuttonPark payment servicing mess. He reached out to me on December 9, 2024.

Jim's Structured Settlement

A structured settlement was created as part of a 1992 agreement in a wrongful death medical malpractice lawsuit resulting from the passing of Jim's first wife when he was only 29. Jim was represented by an esteemed lawyer from Binghamton, New York, whom I am acquainted with. Although I was not part of that settlement process, Jim contacted me after reading recent blogs on this platform to assist in providing information to those impacted by the regrettable events at SuttonPark, which is based in Boca Raton in Florida.

The structured settlement included monthly income for life with with payments increasing annually at a fixed rate. and was  funded with an annuity from Allstate Life Insurance Company of New York. Jim was living in New York at the time, later moving to North Carolina and finally settled in Yuma Arizona with his second wife for their golden years.  Jim's children also received structured settlements. Those have been fully paid out.

Allstate Life Insurance Company of New York ceased writing structured settlements in 2013, and Allstate later divested the company through a sale to Wilton Re in 2021. Allstate - Business Wire Press Release - Wilton Re

Jim's Partial Sale of Structured Settlement Payments

Jim Yad sold some of his structured settlement payment rights to a Florida company in 2017. Due to the sale being a partial structured settlement transfer, a payment servicing agreement was arranged and/or ended up with SuttonPark.

The payment servicing experiece went well until Q4 2024 and Jim mentioned very positive interactions over the years with Percy Forde, the Director of Servicing at SuttonPark. Percy Forde is one of the few payment servicing employees that is still believed to be at SuttonPark.  Jim Yad's November payment was still overdue as of Tuesday and the he's worried about the December payment. he sent a communication to [email protected] earlier this week.

As a retiree, Jim relies on his remaining structured settlement payments. He receives his social security check, but the structured settlement payments are crucial, and it's painful to be affected by the decision to lay off most of the SuttonPark servicing department. This left fewer than five people to manage the overwhelming task of processing thousands of payments, akin to moving a "pig through the python" in the Florida Everglades or a "herd of large capybara through an anaconda in the Pantanal" This situation arose at what was once the largest aggregator and servicer of such payments.I identified the factoring company involved in the deal with Jim and contacted them to explore how they could assist in facilitating the process.

Keep Jim in your prayers as well as all others afflicted by the SuttonPark payment servicing nightmare. I will contnue to publish SuttonPark payment servicing delay impact stories. This situation could have been avoided.

Remember that structured settlement payment servicing is necessary in part because certain insurers do not split payments, or parts of payments. Transfers of payment streams with cost of living increases are commonly subject to payment servicing. 

SuttonPark Payment Servicing Issue if it Could Be Explained in a Single Picture (Figuratively Speaking)  Image Source: Tenor.com

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