by John Darer CLU ChFC MSSC CeFT RSP CLTC
When results for 2019 are released shortly, indications are that U.S. structured settlement industry production ended the decade having topped $6 billion for the second year in a row after a decade surfing below that level, stemming from the 2008 financial crisis.
The Tennessee State legislature introduced bills to make various changes to the “Tennessee Life and Health Insurance Guaranty Association Act. The Tennessee House and Senate bills excludes from coverage under the Act "a person who acquires rights to receive payments through a structured settlement factoring transaction, as defined in federal law, regardless of whether the transaction occurred before or after the federal law took effect.
DRB Capital claimed that since the DRB bounty program's launch in August 2018, DRB Capital has awarded one payout and received numerous tips and credible information about unfair, deceptive and abusive activities in the structured settlement secondary market. DRB claims that many of these violations are criminal in nature, including the routine falsification of information submitted to state courts as part of structured settlement transfer petitions.
Sean McManus, principal of structured settlement factoring company Patriot Resources is sued by FINRA for selling "Snake Oil" without a license. Yes a snake oil salesman!
Structured settlement industry production reports, compiled by Melissa Evola Price, confirm that 2018 production exceeded $6 billion which was the highest in a decade, an 8.45% increase over 2017.
Structured settlement annuity issuer Pacific Life Insurance Company was named among the most ethical companies in the world for the second straight year. USAA is named for the fourth straight year. Prudential Financial is also named.
Settlement checks are mailed in the Aviva/ Athene Class Action settlement.
A structured settlement transfer petition is submitted in Orange County Florida featuring a 19 Year old structured settlement annuitant trading $6,351,156.88 for $1,252,430.91.
New York’s attorney general has declared it’s illegal to sell fake social media engagement in order to inflate one’s online influence, ruling against one “fake like” merchant in a landmark decision in the battle against bots. Bots and other fake accounts have been running rampant on social media platforms, often stealing real people’s identities to carry out fraud,” Letitia James said in a statement accompanying the decision. “As people and companies like Devumi continue to make a quick buck by lying to honest Americans, my office will continue to find and stop anyone who sells online deception. With this settlement, we are sending a clear message that anyone profiting off of deception and impersonation is breaking the law and will be held accountable.”
A review of the deposition excerpts from deposed parties in Court filed documents in in Wall v Altium Group LLC show that there was a misrepresentation of the nature of What Retirees Were Buying Multiple Times. The Walls lost their entire investment in an origination fraud.
A creative Florida structured settlement factoring company submitted a New York structured settlement transfer petition in Queens County with the caption In the Matter of And vs None. Who's on First?
On March 13, 2019, the DC Structured Settlements Protection Act of 2018 (SSPA) went into effect, updating the District of Columbia’s statutes to provide better protections to personal injury victims who receive financial compensation for their damages in the form of structured settlements.(Mar. 13, 2019, D.C. Law 22-235, § 101, 66 DCR 580.)
Michelle Caine of Prudential Financial begins her term as President of the National Structured Settlements Trade Association.
In Wall v Altium Group, the Western District of Pennsylvania granted summary judgment in the favor of Altium Group on April 30, 2019 against Pennsylvania retired couple. Altium Group has advertised scam labelled "secondary market annuities" as having "Unparalleled Safety of Principal" Instead the investors in secondary market annuities" ended up with $0 and big Legal Fees
Allstate Corp. enters into talks to sell its $2.5B annuity block (that includes structured settlements) to FGL Holdings.
Investors in Secondary Market "Annuities" are crushed as The Maryland Court of Special Appeals has reversed a trial judge's approval of a class action settlement with victims of the Access Funding exploitation of lead paint structured settlements, finding the parties could not bargain away the Maryland Consumer Protection Division's right to seek restitution from the company
H.R. 2212, the Structured Settlement Claimant Rights Act of 2019 is introduced
CBC Settlement Funding, a Conshocken, PA structured settlement factoring company associated with Sutton Park Capital CEO Steve Pasko, is relentless in outrageous pursuit of deal , a year after structured settlement factoring Petition on 19 year old NJ resident was canceled due to mental Illness after his parents intervened.
Payment servicing in factored structured settlement deals. In one case a payment assignee's representative notified the annuity issuer that the payment assignee (not qualified assignee) died, but the annuity issuer inaccurately entered it into their system that the annuitant died. When the servicer contacted the beneficiary to express its condolences they learned that the alleged decedent was very much alive. A representative of the annuity issuer then asked for proof that the annuitant was alive, when the mistake was theirs in the first place.
A Federal District Judge in Eastern Pennsylvania has denied motions to dismiss racketeering claims against Seneca One, JG Wentworth, 321 Henderson and Portsmouth Virginia lawyer and delegate Stephen Heretick in the matter of Larry G. Dockery et al. v Stephen E. Heretick et al. and New York Life Insurance Company, et al.Case 2:17-cv-04114-MMB.
The end of the road for the so-called " AIG Structured Settlement Class Action" as the First Circuit Court of Appeals affirms the District Court ruling against Plaintiffs. Retired United States Supreme Court Justice David Souter wrote the decision stating in pertinent part, "The annuity companies' payment of brokers' commissions from out of the money Lexington paid for the annuities does not belie the facts that Lexington paid the amounts it quoted and that appellants received exactly those specific annuity payments the agreements had promised, payments that the appellants have not alleged that they failed to receive".
On June 11 Louisiana Governor John Bel Edwards signed Louisiana Senate Bill 193, now identified as 2019 Louisiana Act 260, which will replace Louisiana’s
flawed Structured Settlement Protection Act with a new statute largely conforming to the National Conference of Insurance Legislators (NCOIL) Model SSPA. The new statute, which will not take effect until July 1, 2020, also includes registration and bonding requirements for factoring companies seeking to acquire payment rights of Louisiana residents, plus prohibitions intended to curtail “poaching” of transactions by competing factoring companies
The State of Connecticut plans to increase its statutory protections for structured settlement annuitants in the event of insolvency of the annuity issuer.
CT investors in structured settlement payment rights do not have the same statutory protection as structured settlement annuitants effective October 1, 2019. To eliminate any confusion, changes to the CT statute contain an express exclusion from protection for investors in structured settlement payment rights acquired through a structured settlement transfer regardless of whether that structured settlement transfer occurred prior to the enactment of the new law. [ see C.G.S. 38a-860 (O) structured settlement annuity benefits to which a payee or beneficiary has transferred the payee’s or beneficiary’s rights in a structured settlement factoring transaction as defined in 26 USC 5891(c)(3)(A), regardless of whether the transaction occurred before or after said section became effective]. The new law is part of an Act Concerning Conforming Minor and Technical Changes To Statutes Concerning Insurance and Real Estate.
A structured settlement factoring origination firm associated with a New York structured settlement primary market agency registers as a structured settlement transferee with the Office of the Attorney General of the State of Maryland.
Factoring company Novation Settlement Solutions attempts to scam consumers with a rising interest rate scam to induce them to sell their structured settlement payments to Novation for pennies on the dollar. The Novation scam was notable given that interest rates were actually falling the time of the advertisement.
Former head of factoring broker Sovereign Funding Group, David Springer, in more dubious self promotion, representing on LinkedIn that he has authority to sell life insurance when neither the dates of professional license that the Mt. Airy man claims, nor the line of authority Springer claims he has, can be corroborated in the most current Maryland Insurance Administration database.
August 19, 2019 CT Judge Snuffs Bad Deal for 18 year old New York annuitant forum shopped by structured settlement factoring company to Connecticut. The bogus deal was signed days after the young Hispanic male graduated high school. The denied deal had between $406,000 and $530,000 in profit spread. The 18 year old annuitant posted 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? If the young man really lived at the purported address in CT, then why would he commute 2 hours each way for an hourly "minimal wage" job on the West Side of Manhattan, when there were plenty of pizzerias and fast food joints in CT?
Married man’s death during sex on business trip was ruled a ‘workplace accident’ which under French court ruling, means tbay any partners and children will receive a monthly benefit of up to 80 percent of his salary until what would have been his retirement age and then a share of his pension
Disgruntled former structured settlement broker turned lawyer Dick Risk's quest to take down AIG, has been nailed shut as the deadline to file Writ Certiorari has come and gone. Three months earlier, the First Circuit Court of Appeals had already affirmed the Trial Court's September 2018 decision. Predictably no word from all the snipers in the settlement planning media who devoted excessive air time to the poorly pleaded litigation at the outset but not even a byline when the lawsuit met the fate it was due.
One or more unnamed structured settlement factoring companies are targeting United States consumers using an Egyptian company in an apparent effort to skirt US telemarketing laws. A representative of one Egyptian company, Proper Business Solutions, who claimed to be an American, claimed to me that because they have no presence in the United States they are not subject to its laws.
FINRA claim concerning " secondary market annuity" investment is settled, according to FINRA Broker check for Somerset CEO Thomas Hamlin. The former merchant of factored structured settlement payments streams settled with Barry Cooper, a retired Navy worker who invested substantially all of his retirement money from years of back breaking work at a naval yard
NY Senate Bill S6688 sponsored by Afro-American state senator James Sanders, Jr. requires licensing for Commercial Loans but not structured settlement factoring companies or their representatives who for two decades without regulation, have had free reign to harass and solicit vulnerable NY Individuals, many of whom are blacks and other minorities so they can buy up their assets for pennies on the dollar.
A structured settlement factoring origination firm associated with a New York structured settlement primary market agency seem to suggest to investors, that factored structured settlement payment streams have the same risk profile as United States Treasury Bonds in its marketing.
Former Woodbridge Group of Companies Owner and CEO Robert H. Shapiro was sentenced to 25 years in prison by a Miami Federal District Court judge Cecilia Altonaga on October 15, 2019 for Shapiro's role in a $1.3 billion Ponzi scheme. Shapiro was handed the maximum possible under the charges of mail and wire fraud and tax evasion in the scheme, resulting in approximately $450 million in losses for more than 7,000 investors, many of them retirees who had invested retirement funds, between July 2012 and Dec. 2017. Shapiro pleaded guilty in August 2019.
October 21, 2019 "Seeking to redress Defendants’ unfair, deceptive and fraudulent conduct that has caused Missouri consumers to not receive the necessary legal advice of disinterested counsel when evaluating offers to purchase structured settlement payments, and subsequently obtain less than the fair value of their settlement to the benefit of" Defendants, a Class Action lawsuit is filed against JG Wentworth entities alleging violations of the Missouri Structured Settlement Protection Act RICHARD A. TARVIN III, individually and on behalf of all others similarly situated, Plaintiff, v. THE J.G. WENTWORTH COMPANY; 321 HENDERSON RECEIVABLES LIMITED PARTNERSHIP; 321 HENDERSON RECEIVABLES ORIGINATION, LLC; J.G. WENTWORTH STRUCTURED SETTLEMENT FUNDING CORPORATION; and J.G. WENTWORTH STRUCTURED SETTLEMENT FUNDING II, LLC, Defendants. Case Number: 4:19-cv-02860-SRC United States District Court for the Eastern District of Missouri.
A Willis Towers Watson blog published October 24, 2019 suggested that sellers and potential buyers of structured settlement annuity portfolio transfers could find themselves handicapped by outdated and inaccurate mortality projections. Their comments include that underwriting was only as good as the information available at the time of issue, and may have been influenced by pressure to produce winning bids in what, in past years, was a very competitive market. Insurers have not refreshed their approach to expected future mortality. Rated age methodology hasn’t accurately accounted for medical advances or even the seasoning of the business.
United States Owned Structured Settlement Annuity saved the day in Texas for Estate over ex-husband of decedent. See Memorandum Decision and Order November 13, 2019 in John Hancock Life Insurance Co. Plaintiff, vs. The Estate of Jennifer Lauren Wheatley, et al,Defendants. US District Court Southern District of Texas 4:18-cv-02689
The United States Court of Appeals for the Federal Circuit concluded November 27th, that the Court of Federal Claims in Langkamp v. United States, 131 Fed. Cl. 85 (2017) (“Court of Federal Claims Decision”), erred in holding that the United States had no continuing liability for the future monthly and periodic lump-sum payments specified in the (settlement) agreement, and reversed and remanded. It was the first decision requiring the US to make up shortfalls from the ELNY liquidation. Attempts to get the US to pay in two prior cases had failed.
Wilcac Structured Settlements, inc., d/b/a CNA Structured Settlements, Inc. and Wilcac Life Insurance Company sues Nassau County New York couple, individually and as guardians of for their deceased son, seeking recovery of $272,266.14 in overpaid life contingent structured settlement payments paid after the death of their son. Defendants have refused to repay the $272,266.14. The Infants Compromise Order from the settlement required the parents to provide annual proof that there son was alive and notice within 4 days of death.
Structured Settlement Watchdog starts an ethical discussion about the right way and the wrong to buy structured settlement payment rights by settlement planners and structured settlement brokers after accidentally discovering a Broward County deal assigned to a structured settlement broker and settlement planner originated at a less than competitive rate to the seller.
The Department of Justice published its 2019 list of Annuity Brokers. Possibly in response to the number of plaintiff only brokers on the list, of special note is that the nature of the list (and the ramifications concerning the under penalty of perjury declarations of "doing substantial defense work in each of the preceding 3 years) are stated in more explicit detail than ever before in the current memorandum. " Any broker being considered for selection should be required to verify at the time of selection that he or she meets the minimum qualifications set forth in 28 C.F.R. § 50.24(a) and is otherwise competent to provide structured settlement brokerage services to the United States.
It was announced that SFA is folded into Arcadia Settlements effective January 1, 2020.
Former NSSTA President an industry legend Joseph M. O'Reilly passed December 20, 2019.