by Structured Settlement Watchdog
Black Square Financial asks the leading question "What are the benefits of restructuring?"
Black Square Financial says:
- Liquidity Get access to funds immediately in case of an emergency or opportunity. Use the lump sum payout to fulfill your needs or apply to a means of generating growth and longevity
- Ownership Take control of your policy. Access funds as you need them and structure your policy in a way that benefits you the most.
- Peace of Mind Plan for large expenses such as mortgage or tuition payments. Make decisions based on your needs and expectations of financial obstacles for you and your family.
I called 866-356-5165 this morning and was told by Andrew Hoffman, one of the three owners of Black Square Financial, confirmed that "restructuring" is just " Going to court and getting a lump sum". I asked "do you mean a "structured settlement factoring transaction?" to which Hoffman confirmed yes.
Black Square Financial's restructuring is false and misleading advertising
Black Square Fallacy 1
Restructuring is a ruse folks. Black Square Financial claim that you take control of your policy is total baloney. Black Square's guaranteed money losing value proposition (the same as any structured settlement payment buyer) is to give you pennies on the dollar for your payments, not the policy. A structured settlement payment recipient does not own the annuity policy. You are not restructuring the annuity policy. You are not restructuring anything.
Black Square Fallacy 2
Use the lump sum payout to fulfill your needs or apply to a means of generating growth and longevity
Translation: Sell your structured settlement payments to Black Square Financial for pennies on the dollar and then invest.
Black Square makes no mention of the fact that you will need to earn back what they took from you, just to break even. When you're speaking of longevity risk, annuities are one of the best tools, whether you have it now or in the future.
Is Black Square Financial providing unlicensed financial planning advice?
Black Square Financial asks you to call and claims they can help cater the perfect plan for you? Misdirection by "bollocks bolognaise" with some uplighting perhaps.
Black Square also says on its website "We want the opportunity to help you today and build a solid plan for your future".
Neither of Black Square Financial LLC's members Jarrod Freeborn, Jordan Freeborn or Andrew Hoffman show as registered with the SEC, or the State of Florida, as financial advisers
What standard of planning are representatives of Black Square Financial held accountable to? Suitability, Fiduciary...what applies?
Bear in mind a judge's thumbs up or down on a particular transaction does not necessarily speak to the conduct of companies like Black Square Financial. To wit...Judge Sweet's approval of the Cedric Martez Thomas case in Okeechobee County sanctioned Novation Funding's financial rape of the then 21 year old New York resident.
Does the act of selling your structured settlement for pennies on the dollar constitute a financial plan under ANY standard?
The "plan" is that Black Square eats up your annuity payments. The question is only of the size of its appetite.
For further information of how true restructuring may work, supported by at least one IRS Private Letter Ruling please read my September 9, 2015 blog post Restructure from Annuity Issuer Could Avert Selling Structured Settlement