by Structured Settlement Watchdog
A massive structured settlement payment purchasing fraud has been perpetrated against vulnerable American consumers. If the fraudulent deals, of which the tip of the iceberg suggests there are many, eventually result in vacated court orders for failure to comply with the relevant structured settlement protection act:
- Life insurance company will have to restore payments to the original annuitant.
- The original annuitant, who received pennies on the dollar may not have enough money to pay back what they received
- The investor may find that the company they were dealing with when the investment was made, has crawled under a different shell. folding the tent on the original shell. Several companies operate with many shells, one purportedly with almost 300 shells! Errors and Omissions insurance is not easy to get for structured settlement factoring companies.
To be clear I am referring to the secondary market, NOT the stage where structured settlement is a established, when a lawsuit is settled.
The fallout from the massive structured settlement purchasing fraud that occurred could mean the following:
- Retirees who purchased structured settlement payments rights are going to get screwed
- Retirement plans who purchased structured settlement payment rights are going to get screwed
- Personal Injury victims who have been sold recycled structured settlements by settlement planners, in some cases instead of a regulated structured settlements, are going to get screwed
- Money will be traced to lobbyists for the bad actors and the politicians they contributed to.
- Lawyers who advised on these deals may get disbarred if they knew of the fraud, let papers perpetrating the fraud to be submitted to court and let it happen multiple times on their watch, while they raked in hundreds of thousands of dollars in fees.
- Consequences for financial advisors and those settlement planners who failed to do due diligence.
The moral dilemma pits the victims against each other, the Mom and Pops and retired dentists who invested large amounts of their life savings in a derivative of a structured settlement, against injury victims who were raped for pennies on the dollar for their payments, fostered by toothless regulation that does not require a license to sell, where there is no regulator and there are no meaningful consequences for financial predators and financial rapists. Despite recent changes in Maryland, Illinois, Virginia and a few others, the situation is getting far worse, not better as regulation moves slow and none of the regulation addresses solicitation and sales practices.