by Structured Settlement Watchdog™
Income Stream XC, has published a website and issued a do-it-yourself press release soliciting investors in structured settlements payment streams on the basis of a reckless gross misrepresentation of the facts. The domain , Incomestreamxc.com is registered to T. Allen Dyer of Indian Wells, California according to whois records and says in the process of soliciting investors:
"To date, no Insurance Company or State Lottery Commission has failed to pay their scheduled payment obligations so Income Stream products are historically very, very safe. Income Stream Exchange gives owners of Structured Settlements, Income Annuities and Lottery Settlements and other Income Stream products exposure to a larger audience of would be buyers".
Before investing your money with Income Stream XC or anyone else in the space, consider that Executive Life Insurance Company of New York was taken over by the New York State Insurance Department in April 1991 and placed into rehabilitation. ELNY was liquidated in 2013. Hundreds of annuitants as well as investors who acquired ELNY funded incomes streams at a discount, suffered shortfalls, some in excess of 50%! This was not obscure news, if you operate in this space, you couldn't help getting hit by the ELNY news in the face, the tushy or booty, or in any other promontory point in your anatomy.
To the possible detriment of investors, the structured settlement secondary market has no regulations that govern how structured settlement payment rights can be sold to investors and there is no licensing requirement at the present. In addition to default risk in cases such as ELNY, investors must be sure that the underlying structured settlement factoring transaction was completed in compliance with perhaps multiple states' structured settlement protection acts.
IncomeStreamXC is a new website yet claims it is the #1 marketplace, a claim also made by other so called exchanges. The proof is in the pudding. New websites spring up in the structured settlement secondary market all the time
Caveat emptor applies.
Income StreamXC also misrepresents income streams a structured settlement annuities elswhere on its website, stating falsely:
"Structured Settlements Annuities (the "secondary Annuities" or "SAs")
...Structured Settlement payment rights are transferred by the structured settlement recipient, funded by an annuity and issued by an insurance company.
Fact: When a structured settlement transfer occurs, the annuity is not transferred. It remains as a "qualified funding asset", which is defined in IRC 130(d), owned by the qualified assignment company. There is no new annuity issued.
If the Income Stream XC don't get it, it's not hard to see how an investor, or a lay person could be misled and confused.