by Structured Settlement Watchdog
Continuing our coverage of the transactional risks of investing in factored structured settlement payment streams in comparison to how such investments were marketed to investors, in its June 4, 2019 update to investors, Somerset Wealth Strategies' Tom Hamlin delivered the bad news, 6 weeks after a highly negative ruling by the Maryland Court of Special Appeals.
"The defendants in the class action have asked the Maryland Court of Appeals (Maryland’s highest court) to hear the case, a request that court may but is not required to grant. It will take weeks, or possibly months, before the Court of Appeals decides if it will hear the appeal, and if it does, there will be further briefing, oral argument, and additional delay while the court prepares its decision. As a result, it may take a year or longer for the appellate process to conclude". [Emphasis ours]
"There are 150+ investors, plus 5 affected firms that are fighting for payment rights" said Hamlin in a September 18, 2018 missive.
Somerset's securities arm, Hamlin and former rep Brian Horn are each subject to a FINRA complaint filed by Barry Cooper, a Florida retiree whose money was invested in 2013 and was due to receive payments from his investment beginning January 2018. As things stand Mr. Cooper, who was depending on the "secondary market annuity" money for a secure retirement, is looking at payments beginning at least 2 1/2 years later than scheduled, IF and only if the appeal prevails.
FINRA Complaint against Brian Horn
Claim alleges RR recommended the claimant use the majority of his retirement savings to purchase a Secondary Market Annuity that was unsuitable for the claimant, that the product was misrepresented as being a safe investment, and that the solicitation was made to the claimant's wife who had no authority over the claimant's account. Product purchased in 2014. [Source: FINRA Broker Check for Brian Horn]
FINRA Complaint against Thomas Hamlin
Claim alleges breach of fiduciary duty, negligence, negligent supervision, common law misrepresentation, breach of contract and unauthorized trading. Transaction at issue occurred in 2013, and involved a Factored Structured Settlement "FSS" payment stream through an approved Outside Business Activity "OBA".[ Source: FINRA Broker Check for Thomas Burgess Hamlin]
It should be noted that neither Somerset, nor Hamlin or Horn is a party to the Maryland proceeding. However hundreds of thousands it has been represented to me have been spent in an effort to protect their clients and themselves.