by John Darer CLU ChFC CSSC RSP CLTC
On August 21, 2014, NBC News 4 New York featured a segment on Executive Life of New York and how the recent liquidation has affected ELNY annuitants Glenn Arendsorf and Eric Rabinowitz. both of whom had their benefits cut by over 50%. Hosted by NBC News Anchor Tom Llamas, the segment featured Greenwich CT attorney Eddie Stone and settlement expert John Darer, yours truly.
The focus of the segment was the junk bond investment portfolio of ELNY and how the alleged mismanagement of the ELNY estate by the New York Liquidation Bureau over a 23 year period has affected these two victims' lives. Llamas closes with the message I conveyed in our August 8, 2014 interview, concerning the importance of diversification. All 1500 or so of the ELNY victims had their entire structured settlement placed with ELNY. Regardless of the mismanagement alleged against the New York State agency, it is an unfortunate fact that had these annuitants' portfolios been diversified the impact of ELNY would have been much less.
That being said, Eric Rabinowitz was paraded around by Eliot Spitzer's people in 2007 in what proved to be a false dawn that the ELNY shortfalls were solved. Eric Rabinowitz's mother was told by the judge when his case was settled, that "there was a better chance of the sun not shining than ELNY not paying". As I was reminded the other day, the same was told to Larry G. by his lawyer.
ELNY was taken over by New York in April 1991 and liquidated in August 2013.
"Thank you for putting yourself out there and educating the public about our current financial situation. I appreciate it very much" -email from another ELNY victim 08/26/2014.