by Structured Settlement Watchdog®
Straight out of a soft jazz classic (or a costume ball), members of the structured settlement secondary market shun accurate terms to describe themselves to the public in favor of masks. Having already made a dent in the scam label "secondary market annuities", it is time to address misuse of the term "structured settlement broker" by investor facing salespeople.
- The Oxford Dictionary defines broker as "a person who buys and sells assets for others".
- A structured settlement is defined under the Internal Revenue Code
- Intermediaries broker the sale of structured settlement payment rights, defined at IRC 5891(c)(2), not structured settlements, which are defined at IRC 5891(c)(1).
- Intermediaries do not broker the sale of structured settlement annuities to investors either, because structured settlement payment rights are derivatives, not annuities.
- If you allege someone who is hocking structured settlement payment rights to investors of violating state insurance laws (which govern the sales and solicitation of annuities), pay attention to how quickly they are to defend themselves by claiming they are not annuities (despite their use of the "secondary market annuities" scam label), or not an insurance product. It is an admission of sorts, to false advertising.
- A investor in structured settlement payment rights is not a party to the structured settlement from which the structured settlement derivative in which they are investing is derived.
"Are we really happy here
With this lonely game we play
Looking for words to say
Searching but not finding understanding anywhere
We're lost in a masquerade"
from This Masquerade, by the late Leon Russell