by Structured Settlement Watchdog
CT Judge Snuffs Bad Deal for New York annuitant forum shopped by Factoring Company to Connecticut
A CT judge in the New Haven County Courthouse has denied a structured settlement factoring petition by a Delaware factoring company with an utter crap 11% discount rate on August 19, 2019.
What the New Haven County Judge Did Not Know
What the judge did not know is that the Petition appears to be a blatant New York to CT forum shop by a Delaware structured settlement factoring company with the assistance of a member of the Connecticut bar. The denial of the transfer petition saved a June 2019 high school graduate and Prudential Insurance Company of America annuitant, a minority from the Bronx, New York, from a big financial loss of hundreds of thousands of dollars. Our sources claim that there was between $406,000-$530,000 profit in the deal.
The Ugly Truth About Forum Shopping | Why You Should Never Lie About Where You Live on a Structured Settlement Transfer Petition
Structured settlement factoring companies have for years tried to sashay around New York's astute judges and do deals in others states, where a relative lives or concoct some scheme to inveigle structured settlement annuitants in a fraud. Favored destination used to be Florida, most notably Judge Michelle Morley's former "three ring forum shopping circus" in Sumter County Florida. When deals go South, literally, and the annuitants wants to take legal action against the factoring company, their convenient defense is that the annuitant was complicit in the fraud (the fraud they were induced to commit by unlicensed and unregulated salespeople). Other favored destinations have included Portsmouth Virginia and apparently in recent years Connecticut.
If you live in the Bronx, Brooklyn, Queens, Staten Island or Manhattan don't lie no matter how badly you want cash. Don't lie because someone pushing pennies on the dollar says to. You're a fool if you do.
Prudential Annuitant's Social Media Posts Raises Huge Questions
The 18 year old annuitant just graduated high school from P.S. 79 Horan in June 2019, according to his wide open and public Facebook profile.
His wide open and public Facebook profile also said that he worked at the Famouse Famiglia pizzeria ay 630 Eighth Ave from July 2017. The transfer petition was filed in June 2019 right after graduation.
If the Prudential annuitant really lived in West Haven, CT why would he commute more than 2 hours at hundreds of dollars per month to work close to Port Authority in Manhattan at presumably an hourly pay?
Why did the annuitant post different selfies of himself while wearing the same Famouse Famiglia Pizzeria uniform in the bathroom at work 3 or 4 times in the days leading up to the New Haven transfer hearing and then again days after?
To confirm that this was the same individual it was clear from another picture posted on Facebook August 20, 2019, that the Prudential annuitant was standing in front of the New Haven courthouse on the date of the August 19, 2019 hearing. Clearly visible was 235 Church, the address in New Haven of the Connecticut Superior Court New Haven County courthouse.
Why Was This Deal Price So High?
There were 3 petitions filed with three different offers all ranging about roughly the same, it looks like they were just messing up on his monthly payment amount with the increase, but the final petition uploaded was this deal:
5/10/2021 $3,700/m 8 payments 12/10/2021
1/10/2022 $3,811.00 324 payments 12/10/2048 increasing 3% annually
$65k lump 5/27/2023
$65k lump 5/27/2028
$90k lump 5/27/2033
Purchase Price was $544,776.60 @ an even 11% EAR
What Would a Fair Price Have Been?
According to our sources a fair price would have been between 5-6%. In a low interest rate environment perhaps it could be better. Consider what could be raised at various discount rates.
Between 5%-6% your ranging an addition $406k-$537k on top of the Purchase Price in the petition that was denied. At a minimum, the young lad could have been getting $950k plus at 6%.