by John Darer CLU ChFC MSSC RSP CLTC
The Wall case is the watershed case for how investors can and have lost money investing in secondary market annuities. Even with this knowledge the Montana based owner of Secondarymarketannuity(dot)net is still soliciting investors with the following claims (as of March 26, 2017)
- Utmost safety
- Would your IRA or investment portfoli o benefit by a guaranteed income stream or absolute guaranteed lump sum from one of the world's strongest carriers?
- Absolute guaranteed payments
- AAA credit ratings
- Unsurpassed safety
- High Yield With No risk
Despite the fact that structured settlement payment rights are not annuities (they are derivatives) and consumer investors likely do not enjoy the same statutory protections that inure to purchasers of a legitimate annuity, this company is posting the logos of life insurance companies including the following:
- Prudential Insurance Company of America
- Pacific Life Insurance Company and Pacific Life and Annuity Company
- New York Life Insurance Company
- American General Life Insurance Company
None of these companies issues "secondary market annuities" and I highly doubt that any of these companies gave permission for their trademarked logos to be used to sell structured settlement derivatives.
Moreover, the owners of the Montana company that owns the website have admitted in writing (on another site) that they use the term "secondary market annuities", "because it easier to say" than factored structured settlements. [ see reference to Annuity Straight Talk, bullet point #2 in Secondary Market Annuity Is A Scam Label for Structured Settlement Derivatives that Must Be Stopped]
A New Paradigm Exists for Intermediaries and Investors
In the post Wall era, the claims used in soliciting investors in structured settlement derivatives simply cannot be substantiated in the absolute terms that the Montana owners of SecondaryMarketAnnuity(dot)net are using. With its competitor Somerset, suspending sales of structured settlement derivatives in light of the uncertainty surrounding structured settlement payment rights emanating from the Baltimore lead paint cases, it's unconscionable to make the aforementioned claims, in my opinion.
Criticism of Such Companies Not Only Fair But It Has Been Ongoing
One of the most egregious bits of advertising was done in 2014 by Massachusetts company SHP Financial that would nauseatingly tweet deals of the day misrepresenting structured settlement payment rights as annuities and "just like CDs", all the while making unauthorized use of insurance company logos until a stop was put to that. [see SHP Financial Using Life Insurer Trade Marks to Sell Structured Settlement Payment Rights as Annuities April 25, 2014]
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