by John Darer CLU ChFC CSSC
Factoring promoter and structured settlement industry curmudgeon Patrick Hindert 
does what he does, which is generally to criticize the structured settlement industry on behalf of the factoring industry.
Unfortunately for Hindert's own credibility, his attempt to sound authoritative in a criticism of an article on settlement trusts written by Henry Strong, immediate past President of NSSTA, and Dr. David Cordell, has a few lumps.
Among Hindert's gaffe's:
- Hindert perpetuates the myth that structured settlement transfers were "legally sanctioned by IRC 5891 in 2002 (6 years ago)". This is false and, in my opinion, irresponsible. Anyone who can read English will note that IRC 5891 applies to an excise tax on structured settlement factoring transactions [see IRC 5891(a)] and the conditions for exceptions to that excise tax [see IRC 5891(b)]. When Hindert was Executive Director of the Society of Settlement Planners he also tried to perpetuate the myth that the rights to receive periodic payments under a structured settlement were established by IRC 5891. Those rights are established by contract in the settlement documents that are part of case resolution. That is why the consideration for a case that includes a structured settlement must be the periodic payments themselves and NOT the cost of such payments.
- If structured settlement transfers began in 1987 (21 years ago) and according to Hindert (although false) were legally sanctioned* in 2002, then logically does that make the transfer transactions completed in the 15 intervening years illegal?
- This author only found one Internet reference to a David M. Cordell professor at University of Texas (i.e. Hindert's blog post and the syndication thereof). Please find a link however, to the bio of David M. Cordell, PhD, CFA, CFP, CLU, the Associate Professor of Financial Planning at Texas Tech University in Lubbock, TX. Dr. Cordell DID receive his Bachelors, MBA and PhD from The University of Texas at Austin. Perhaps Hindert's motivation for criticism is that he is not on the faculty for the Registered Settlement Planner program offered through Texas Tech University.
- Hindert states that Strong and Cordell's article highlights the need for SSP's professional certification program. Hindert knows that the statement is false. Unless things have changed since October 14, 2006 when Hindert wrote this linked post, The Registry of Settlement Planners is the credentialing organization, NOT the SSP. As you can see from the following link, Dr. David Cordell is on the faculty for the Registered Settlement Planner (RSP) professional designation program. Click here for the evidence from the Texas Tech University web site. It may be relevant to note that Hindert makes money through royalties on the sale of text books he co-authored to RSP candidates.
*Authoritative permission or approval that makes a course of action valid
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