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The Structured Settlement Annuity Buyer Liar Phenomenon

by Structured Settlement Watchdog

In the interest of financial literacy, I continue my commentary about how structured settlement factoring companies make false claims to to promote themselves in public facing advertising.

Exhibit A  Toronto based Strategic Capital

Strategic Capital maintains that it is a structured settlement annuity buyer.  Ask Strategic Capital to document a single case in which they have purchased a

Exhibit A  Res Ipsa Loquitur Stratcap

structured settlement annuity in the United States since they were established almost two decades ago.  Despite hash tagging for local advertising on the Internet that it is a structured settlement annuity buyer all over the place, if put to the test it's doubtful that Strategic Capital will be able to prove that it actually has bought a structured settlement annuity.  Here's why.

Why Is a Company that Promotes Itself As Structured Settlement Annuity Buyer a Structured Settlement Buyer Liar?

A. They aren't buying a structured settlement annuity

B. They are buying structured settlement payment rights, a critical and important distinction

C. There are only three types of structured settlement annuity buyers

1. A Defendant who is buying and holding the structured settlement annuity to fund a future periodic payment obligation to a claimant under a settlement agreement
2. An Insurer who is buying and holding the structured settlement annuity to fund a future periodic payment obligation to a claimant under a settlement agreement
3. A Qualified Assignment Company that has assumed an obligation to make future periodic payments under a settlement agreement and buys a structured settlement annuity as a "qualified funding asset".

Unless Strategic Capital has been a Defendant and bought an annuity to pay for damages it owes in the settlement of a dispute or  litigation it will not have been a structured settlement annuity buyer.

Despite the immutable fact that what they're buying are structured settlement payment rights, which are defined under the Internal Revenue Code, 

Take a look at mendacious claims made by Strategic Capital found in a Google search on August 24, 2021

• "A structured settlement annuity buyer can turn your payment agreement, the result of a personal injury claim, into a lump sum of cash now"
• "As a top structured settlement annuity buyer, we deliver"
• "Buyer of structured settlement annuity"

Sellanyannuity.net is another structured settlement annuity buyer liar 

"Contact a structured settlement annuity buyer Sellannyannuity.net  (Source: same Google search)

Getmycashnow.org  (CBC Settlement Funding answered the phone call when I dialed this afternoon) is a structured settlement annuity buyer liar "carpet bombing" the internet with "Call us today for the best structured settlement annuity buyer"

Even lawyers who give advice to people with structured settlements spread the nonsense

"People decide to sell future payments to a structured settlement annuity buyer" Eugene Ahtirski attorney, At least Mr. Ahtirski is not claiming to be a structured settlement annuity buyer like the company in Exhibit A or the others mentioned above, but surely Mr. Ahtirski knows that these companies are not buying structured settlement annuities. They are buying receivables.

 The Attorney General for the State of Maryland refers to such companies as "structured settlement transferees" or factoring companies and maintains a list of such companies that are registered in Maryland. It does not refer to any of the registered companies as a  "structured settlement annuity buyer".

The Baloney Has a First Name | Structured Settlement Cash Now Opus

by Structured Settlement Watchdog

Penned while waiting for the release of Covid-19 booster shots, here's another "jab" at the structured settlement factoring industry and the misinformation disseminated by some of its members, an apt descriptor of which shares its name with a popular processed lunchbox meat. 

The Structured Settlement Cash Now Opus  ( a parody)

The Baloney has a funny voice. Sounds like BlaBlaBla.

The Baloney has a first name

F-A-C-T-O-R.
The Baloney Has a second name,
Pennies on the DOLL-AR.
Oh I love to critique it everyday
And if you ask me why I'll say,    

Factoring Companies have a way with C-R-A-P-O-L-A.

 

The Baloney has a funny voice

Sounds like  B-L-A-B-L-A-B-L-A

You get your pennies and "rejoice"

Ginned up to buy an expensive car

Oh I love to critique it every day

And if you ask me why I'll say

Factoring companies have a way with C-R-A-P-O-L-A

 

The Baloney keeps on calling me

Claims to work with an insurance company

The dude was sly, I looked him in the eye

Said bro I know you're punkin' me.

Oh I love to critique it every day

And if you ask me why I'll say

Factoring companies have a way with C-R-A-P-O-L-A

 

 

 

 

 

Structured Settlement Cash Now Sharks Prey on 18-24 Year Olds' With Structured Settlements Using Fanciful Investment Schemes

by Structured Settlement Watchdog

If you recently turned 18-24 and have a structured settlement, beware creatures of the deep discount. Some structured settlement purchasers are like razor toothed bull sharks prowling the reef or surf line, waiting for the "just old enough" dinner bell to ring. 

Structured settlement cash now sharks nosh on young adults' structured settlements

Some structured settlement purchasers prey on legal but unsophisticated wide eyed young adults with "bull shark" sales pitches that involve pairing a purchaser of structured settlement payment rights and an investment adviser. In one matter I recently learned of, a young adult is being pitched to sell $2,000,000 in payments for $500,000 and some investment adviser purports to be able to turn those pennies on the dollar into $5,000,000.

Before you get bamboozled into a pennies on the dollar disaster consider the following:

The S&P 500, as an index, is a statistical measure of the performance of America’s 500 largest stocks. In this context, the S&P 500 is a common benchmark against which portfolio performance can be evaluated. According to Motley Fool, "when it comes to the major U.S. stock indexes, none is more highly regarded as a barometer of the overall stock market’s performance and an indicator of how large corporations are performing than the S&P 500 index".

If you invested in the S&P 500 on January 2, 2001 and left it in the entire time period, without succumbing to the market's gyrations for 20 years, until December 31, 2020, your rate of return would be 7.47%, according to the J.P. Morgan Asset Management 2021 Retirement Guide published March 6, 2021.  If you missed the 60 biggest trading days over the 20 years, you return would have been negative, to the tune of -6.81%.  These returns are before taxes. 

How Compound Interest Works

So, if we use the 7.47% for an example and plug that into a compound interest calculator, along with the $500,000 proceeds from the recent proposed sale for 20 years, the calculator shows that you could accumulate $2,112.102 over 20 years, not taking into account federal, state and possibly local income taxes that might be due over the time period. So under that scenario the person might end up with less after taxes while exposing themselves to more risk.

What is really nuts, in my opinion is when structured settlement factoring companies pair with a investment advisor and project "from the moon" investment assumptions.

Three stories involving New Yorkers

Melissa Diego, a Latinx victim of con men Dan Cevallos and Eddie Rodriguez of Advance Funding 

Cedric Thomas, a then young person of color victimized by 365 Advance/Novation Funding. Had a nice six figure  income tax free "salary" from his AIG structured settlement before being taken by 365 Advance/Novation in October 2015 for a $1.5 million profit spread, bearing a disgusting 15.24% effective discount rate  The money was spent on money losing properties and a Maserati. 

'Michael Monagan, almost a victim of a pennies on the dollar to investment scheme where the financial adviser projected 12%, without taking into account taxes. 

Structured Settlement Cash Now Shark Warnings in English, Spanish, French, Creole, Portuguese, Swahili, Latin, Yiddish,  "Ebonics", Korean and German

• Beware the Structured Settlement Cash Now Sharks!
• Cuidado con el efectivo de liquidación estructurada ahora tiburones
• Méfiez-vous de l’argent maintenant requins!
• fe atansyon lajan kach kounye a reken
• cuidado dinheiro agora tubarões
• Jihadharini na pesa taslimu sasa papa 
• Cave ergo Stingrays cash est structured settlement 
• hit eykh di straktsherd oysglaykh gelt itst sharx
• Yo! bewis da structured settlement cash now sharks   [ Source: Ebonics translator ]
• 이제 구조화 결제 현금을 조심하세요! ije gujohwa gyeolje hyeongeum-eul josimhaseyo!

• Hüten Sie sich vor den Cash-Now-Haien mit strukturierter Abwicklung!