Which Jack Asses in the structured settlement industry have cut a "co-marketing" deal with a factoring company to divulge the timing and amounts of future periodic payments to the factoring company so the factoring company can approach them for "cash now" and so that the structured settlement broker or settlement planner can reap a fee for each completed deal?
Lawyers, If a structured settlement broker or settlement planner, "who you trusted", who placed a structured settlement annuity based on your referral, then shared his or her knowledge of the amount and timing of payments coming due to your client with a factoring company, in advance of those payments coming due and THEN, the factoring company solicited your client to sell those payments for a discounted lump sum on which your "trusted" friend made a profit, how would you feel?
Life insurance companies issuing structured annuities who issue privacy statements they send out annually to annuitants and insureds, have you considered the exposure that your company may have if one or more of your appointed agents is doing this?
In my opinion, any moron who decides to accept a "kickback" (wrapped as a "co marketing agreement"), as an incentive to give out confidential information for this purpose deserves to be publicly exposed, they deserve to have their appointments with all life annuity markets pulled, and they deserve to be booted out of the National Structured Settlement Trade Association and/or Society of Settlement Planners.
Consider the case of a plaintiff who has a $350,000 lump sum coming due in a year. Is that poor annuitant better off cashing in their structure or sitting down with a financial planning professional, perhaps a settlement planner to review their current financial situation, taking into account current needs and goals, sources and uses of funds, and developing a customized solution that considers multiple options?
The structured settlement watchdog, John Darer, along with several others, is on a justice hunt for those who are participating in this practice before it undermines the credibility of the industry. If you don't think I'm serious try me. The trail continues to get warmer and the number of "aides de camp" continues to grow from both the primary and secondary market. This is a bi-partisan industry issue. In my opinion this scummy business practice hurts both the primary and secondary sides of the market and must be stopped. It will be!
- Among other things that we will be doing is placing the marketing materials of these participants under scrutiny for evidence of disclosure of this activity up-front.
- We will also be looking at any "wet ink structures" for which you fomented a sale through this "co-marketing agreement"?
In terms of progress, we now have the geographic location of at least one participant and identified a source who can identify him. We are aware from our sources that there are at least two participants. I suspect based on the information we developed today that the same factoring company is soliciting other brokers. The impetus for the second participant, described as a likable guy and "a good family man" by our source, was allegedly advised by the factoring company that a competitor had already cut a similar deal and was soliciting in the second person's backyard so he basically decided piled on. Wasn't John Edwards first image one of the "good family man"? We all know how that has turned out. If you are the wife of this "good family man" and you are aware of what your hubby is doing you may want to have a serious "pillow talk".
Keep your ear to the ground. If you see or hear of anything that could help the investigation and effort to stop this practice, please contact me.
A podcast on this topic featuring Mark Wahlstrom and I will be airing on Legal Broadcast Network in the next few days. Stay tuned!