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

"Untrustworthy" Sales Practices to Vulnerable Citizens Means Loss of Insurance License!

Insurance agents in Washington state can lose their licenses if they are deemed "untrustworthy."

The Washington State Court of Appeals recently ruled that Insurance Commissioner Mike Kreidler was correct in revoking insurance agent Jack Chandler's license based on the fact that he had shown himself to be untrustworthy in his sales conduct with elderly consumers.

The court also agreed with the Commissioner that Chandler attempted to exploit senior citizens by using misleading marketing tactics to get them to buy reverse mortgages, living trusts and long-term care insurance. He also misrepresented himself on his Washington licensing application when he failed to disclose complaints against him in California.

Commissioner Kreidler was quoted in the Department News Release of August 28, 2008 as stating that "Mr. Chandler preyed on some of our most vulnerable citizens and I cannot allow that to happen,"

Commissioner Mike Kreidler is to be heartily applauded for his efforts. I have written to Mike Kreidler and suggested that there is another vulnerable segment of the population being exploited by insurance agents that he should look into. Please read it.

Download letter_to_washington_insurance_comissioner_re_chandler_8302008.pdf

I fully expect this letter to send a chills down a few insurance agents spines in the structured settlement industry. I see little difference in the need for regulation of sales practices to seniors or structured annuity recipients.

Settlement Planning- A Profession or a Party "Mask"?

by John Darer CLU ChFC CSSC

Is "settlement planning" a profession or is it simply a "party mask" worn by some structured settlement producers?

In a number of cases I believe it's the latter. If the term is to accurately describe what settlement professionals do- to the legal community, to injured parties and the other parties in litigation, the message must be more clearly and visibly defined at both the company and association level AND reflected in the day to day activities of a larger number of individuals.

More voices need to appear to increase the credibility and prestige to the profession. Despite the fact that there are hundreds who might fancy themselves as "settlement planners" one can count the number of regular writers and publishers on one hand.

In my opinion, more of those who refer to themselves as "settlement planners", but are essentially masking what they really do, need to avail themselves of professional development programs like the Registered Settlement Planner, Medicare Set Aside Consultant Certification, Certified Financial Planner, Chartered Life Assistance Planner, Chartered Life Underwriter, Chartered Financial Consultant, Master of Science in Financial Services AND participate in the public intellectual discourse that has been going on for over 3 years.

Those who call themselves "settlement planners" should be leaders. They should take off the "party mask" and lead by example.

Where is Hindert when ELNY Annuitant Goes To Well Again And Seeks Factoring Expert?

by Structured Settlement Watchdog

The following comment first appeared yesterday and at the time of this post STILL appeared on  the structured settlement industry's factoring promoter Patrick HIndert's blog

"Comments

I was attempting to get a piece of my structured settlement in Aug 08. I was going Wentworth for this transaction. Wentworth claims Executive Life will not let this happen. It is due in 2013. I have done this with Wentworth in the past. Help me understand, why not. Thank you ps Met life claims this should not be a problem

Posted by: J Henry | August 28, 2008 at 12:01 PM"

It is surprising that the Hindert, who recently embraced the "JG Wentworth thought leaders" like a stink on poop, doesn't have any timely words of wisdom for Mr. Henry,  a structured settlement annuitant "going to the well" for a second time.  Mr. Henry commented on Hindert's December 2007 post about Executive Life of NY**.

Rumor has it that Hindert is shopping around Part 4 of his never ending nonsequitur "the Randy Snow story".

** Executive Life of New York was subsequently liquidated in August 2013, with obligations folded into GABC.

 

 

Who Owns Structured Settlement Annuity When Paid to a Special Needs Trust?

by John Darer CLU ChFC MSSC CeFT RSP CLTC

When a structured settlement is used in conjunction with a Special Needs Trust or Supplemental Needs Trust the annuity owner IS NOT the Special Needs Trust or the Supplemental Needs Trust. The Special Needs trust is the recipient of the structured settlement payments. One could say that it is the owner of the structured settlement payment rights, but NOT the owner of the annuity itself.

Qualified Assignment Company is Almost Always the Owner of the Structured Settlement Annuity

The owner of the structured annuity is either the Defendant or its Insurer, if there has been no qualified assignment of the periodic payment obligation. If there has been a qualified assignment, as would be the majority of cases, the owner of the structured annuity is the qualified assignment company.If the structured settlement uses United States Treasury obligations, as an alternative permissible qualified funding instrument, the answer remains the same. Those assets are similarly owned by the qualified assignment company.

Some attorneys feel that the failure of the Social Security Administration (SSA) to specifically address structured settlements (as opposed to just plain old annuities) by DEFRA 2005 through subsequent POMS is a reason not to use structured settlements in this manner. Others do not. Click here for more about why a structured settlement may be useful in conjunction with a Special Needs Trust or Supplemental Needs Trust.

Connecticut Sailing Tragedy Could Have Been Avoided

by John Darer CLU ChFC MSSC CeFT RSP CLTC

I just read of Tuesday's sailing tragedy that resulted in the drowning death of a 3 year old Brooklyn girl, Alexandra Vitale, when the Hobie Cat, a  Hobie 16 (similar to the one in this picture), on which she was riding tipped over near Cockenoe Island in Long Island Sound.

Hobie makes catamarans ranging in size from 13 -18 feet. As one who has sailed them himself (from the facility and in the waters where the tragedy took place), I can attest that they are great fun to sail and very fast. Passengers sit on a trampoline that stretches between two pontoons. More often than not the faster boats are seen with the sailors hiking back off one of the pontoons suspended from what is known as a trapeze in an effort to balance "the forces of nature". Which brings me to my commentary.

According to press reports the only people on board were Alexandra, 3, her two cousins, aged Andrew  and William Howell (ages 6 and 3) and an 18 year old instructor. What in the world were these tiny tots doing on a Hobie 16 and was it an age appropriate boat for a "safety lesson"?  Add to the responsibility of managing 3 tots, the quick judgment needed on the water to manage a powerful catamaran when the wind gusts and it raises a serious question, in my opinion.

Apparently an official told the New York Post that Alexandra and her cousins were too young to be enrolled in a regular class at Longshore Sailing School, but their parents had worked out a "separate arrangement" with the school.

The Stamford Advocate, Connecticut Post and the New York Post conflict on the number of instructors aboard the ill fated Hobie Cat. The Advocate and Connecticut Post say one instructor while the Post says two.

My heart goes out to Dr. Michael Vitale, a prominent pediatrician at New York Presbyterian Hospital, and his family on the loss of his daughter.

Have a Structured Settlement? Don't Blow It!

by John Darer CLU ChFC MSSC CeFT RSP CLTC

Have you just turned 18 and found you have this structured settlement that your parents set up for you years ago?

The structured settlement provides annual payments tied to what are meant to be your college years.

Now, like the Sirens of ancient Greek mythology, the J.G. Wentworth Viking chick's tractor beam is reeling you in and people are falling all over themselves to offer you trinkets like a free Ipad in exchange for your structured settlement. These people are a dime a dozen pushing the "cash now" drug.

Don't you think it makes sense that it's something valuable if these companies are being so aggressive about getting to you?

But man, it's so tempting isn't it? You can just smell the cash and what it can do for you, the car you can buy, the boat, the tennis bracelet for your girlfriend, the new closet you'll need for your new collection of Jimmy Choos, all those people you THINK you will impress. Perhaps the Viking chick or Mr. Wentworth in his conductor suit even turns you on. Be honest now!

Then, hopefully, you think again and realize that it's not all about instant gratification AND, if you play your cards right you will eventually be able to afford all of that (if you wish), without destroying the opportunities for the future that a college education offers

Sandra Block's  "Your Money" column in Tuesday's  USA Today presented the results of a Sallie Mae/Gallup Poll on how the average family pays for college

Parent income/savings 32%
Student Borrowing 23%
Parent Borrowing  16%
Grants/scholarships 15%
Student Income/Savings 10%
Friends/Relatives Support 3%

This means that on the average, mom and pop can't afford to send you to school of your choice on their own. Your structured settlement payments can help afford you that opportunity. Don't blow it!

"From your parents you learn love and laughter and how to put one foot before the other. But when books are opened you discover you have wings". – Helen Hayes

Economic Stimulus Package Closes Loophole, Enables Greater Financial Planning Opportunities Via Structured Installment Sales

by John Darer CLU ChFC CSSC

The Housing and Economic Recovery Act of 2008 ("HERA")

The Housing and Economic Recovery Act of 2008 ("HERA") was signed into law on July 30, 2008. Included in HERA 2008 is an amendment to Internal Revenue Code Section 121 ("IRC 121") designed to preclude taxpayers from excluding the gain on the sale of a residence attributed to periods of "nonqualified use" (any period after 2008 when the residence is not used as a principal residence).

The purpose of the IRC 121 amendment was to close the loophole that permitted a taxpayer to sell a primary residence and utilize the full home sale capital gains tax exclusion ($250,000 for single, and $500,000 for married taxpayers); then convert an existing vacation or rental property into a primary residence, satisfy the two of the five year residency requirement, and then sell the new primary residence and again utilize the full home sale capital gains tax exclusion.

The closure of the loophole means an added capital gains exposure which may be mitigated through the use of a structured installment sale (a/k/a "structured sale).

"When One Door Closes, Another Opens..."

For more information about structured installment sales please contact John Darer at 888-325-8640

Last update November 27, 2023

 

 

"The Fund's Performance Always Looked Pretty Until Someone Wanted To Redeem"

"The fund's performance always looked good on paper until someone wanted to redeem," said one investor in the Sagecrest II hedge fund in a recent email to The New York Post. "Then you're told there isn't enough cash and the 'value' assigned to the fund is difficult to determine".

How would you like that as a testimonial to your firm's ability to make money?

Sagecrest II promised investors lofty returns backed by art, real estate and "structured settlement loans" and then ran into liquidity problems which it blames on the Deutsche Bank nut vice. Deutsche Bank  is a major participant in the financing behind structured settlement factoring deals.

We certainly know that the structured settlement (payment rights) assets aren't what is giving Sagecrest trouble. The factoring industry has been making bloated returns at the expense of tort victims' conservative long term security for some time. John Calamari, CFO of JG Wentworth has stated "It (structured settlement) is the perfect product for pensions, insurance companies and big banks." See "Squidward on Securitizations of Structured Settlements"

Sagecrest II, LLC,a hedge fund founded by Philip and Allan Milton, filed for Chapter 11 bankruptcy protection on August 17, 2008.

The bankruptcy case is SageCrest II LLC, 08-50755, U.S. Bankruptcy Court, District of Connecticut (Bridgeport). The Windmill lawsuit is In re Wood Creek Capital M v. SageCrest II LLC, 08-50075, Superior Court, Stamford, Connecticut.

"Govern well thy appetite, lest Sin Surprise thee, and her black attendant Death"  John Milton

"Structured Settlement vs Financial Planning?"

The above search phrase was entered into a Google Search earlier today. I felt compelled to respond because a structured settlement is and should be the result of a form of financial planning (settlement planning) and something that may be part of NOT in place of an overall plan for litigation recovery management.

A structured settlement finds its place at the base of the financial planning pyramid, the wide and strong foundation. What is unique about a structured settlement is its time sensitivity to the settlement of a lawsuit or the  release of claims. A structured settlement is something to be considered not the process itself. Financial planning is a process.

While some financial planners are in the industry and familiar with structured settlements, others representing the vast majority may neither have practical experience nor appreciate the subtle nuances of settlement planning and litigation recovery management.

Did Buffalo Structured Settlement Bundler "Cover Up" For John Edwards?

An intriguing question has emerged concerning Forge Consulting President John T. Bair.

Did Bair make a move to cover up his employment history to help John Edwards and Forge Consulting to "fill in the gap" in time between Edwards leaving the practice of law to become a Senator (in 1999) and 2003 (when Forge Consulting was founded)  a point first raised in the "pay for testimonial" scandal over a year ago.

Background:

1. The website WhiteHouseForSale.org, a project of Public Citizen, identified, and continues to identify, John Bair as a bundler for Edwards
2. Bair and Forge extended hospitality to Edwards which included the use of its offices Download buffalo_news_jan_8_2007_forgeedwards_connection.pdf
3. Forge Consulting made use of a purported testimonial from Edwards to solicit structured settlements business from trial lawyers and tort victims, on its web site Download forge_consulting_testimonial_web_page.pdf UNTIL July 13, 2007
4. John Bair used the purported testimonial from Edwards in letters to New York State Trial Lawyers. Download forge_feb_21_2007_letterny_statejohn_bair.pdf
5. This author repeatedly questioned the the testimonial due to the mathematical mismatch in Edwards' "relationship" with Forge and did not get a response (see John Edwards tab on right). This author believes that the evidence suggests that there is no way that John Edwards could have used Forge Consulting for structured settlements as he had long stopped practicing in his law practice by the time Forge Consulting was founded.
6. Two weeks ago I reported about a political fund raiser where the President of Forge Consulting, John Bair was boasting about how proud he was to have Edwards "in his camp".
7. Bair and his wife Amy are listed among the only 40% of Edwards fat cats and bundlers who have received refunds of their personal contributions. The data was compiled by DBKP from Open Secrets.org. As DBKP reports, "for a candidate that ran on a “Two Americas” theme, when it came time for refunds, only One America got campaign refund checks, while the other America was kept in the dark".

It has just been discovered that John Bair has a listing on on the Business Networking website Linked In, in which he claims professional experience as owner of Forge Consulting back to May 1999. The listing implies exclusively plaintiff representation.

Food For Thought

1. Here is John Bair's Linked In entry as it existed on August 25, 2008  Download linkedin__john_bair.pdf
2. Here is a fax cover sheet from the office of John T. Bair, EPS Settlements Group dated March 5, 2002. This author would also swear under penalty of perjury that Bair was representing the defendant in the case. Download fax_cover_sheet_epsjohn_bair_352002.pdf
3. Wayback Internet Archive  Download internet_archive_wayback_machineforge_consulting.pdf shows Forge Consulting website did not exist before 2003
4. The testimony of any officer of EPS Settlements Group would refute John Bair's employment history and establish the precise dates that he started with them.

What other explanation is there for John Bair to omit EPS from his employment history and "move the chains" back to 1999?