by Structured Settlement Watchdog
A Federal lawsuit has been filed against a qualified assignment company for failure to enforce structured settlement anti-assignment provisions when 6 attempts were made to sell a structured settlement for a New York lead paint victim who could not even read , had not graduated high school, had no GED, had no lawyer and never appeared in Court according to the Complaint.
The New York man's entire structured settlement was wiped out in six improvident structured structured settlement transactions in two years (shades of Terrence Taylor). Several transactions involved NASP member Singer Asset Finance and another, Liberty Settlement Funding. It is notable that not one of the structured settlement factoring companies were named in the suit. Convicted forger Jose Manuel Camacho Jr. represented factoring companies in several of the transactions in Florida Courts, although none of them involved forgeries according to the Complaint. The Complaint however, alleges that there was collusion between the insurer and the structured settlement factoring companies and is alleging a RICO level conspiracy.
Cite: Cordero v Transamerica Annuity Service Corporation 18-cv-21665 United States District Court Southern District of Florida filed 04/26/2018
Those in the structured settlement primary market who are critical of Berkshire Hathaway's efforts to protect their annuitants, or the efforts of the USDOJ to slam the door shut on structured settlement transfers from annuities owned by the United States, now have something else to think about.
Another structured settlement factoring company, Genex Capital,out of Vancouver has sued New York Life in the Taylor case, alleging that New York Life should not be granted an interpleader because it was noticed about the transfer hearing (in the transactions where Genex Capital Corporation was the payment rights assignee) and failed to act.
Pay close attention to these two cases for messages coming out of the structured settlement factoring companies and the two life insurers and the actions of the rest of the annuity issuers in response to the lawsuit. Will there be in an increase in enforcement of anti-assignment provisions? If so this will result in increased expenses to secondary market companies.