by Structured Settlement Watchdog
Young Black Man from Nassau County Was Targeted When He Turned 18 by Financial Vultures
A young black man was targeted by structured settlement factoring vultures from the time he turned 18 years old. By the time he was 21 years old he got royally shafted by a structured settlement factoring company for in excess of a million dollars. 3 years later he entered into a structured settlement factoring transaction with JG Wentworth and sold life contingent payments for bupkis. Upon information and belief, a review of what was represented to the Nassau County Supreme Court as facts in the young man's affidavit submitted to the Supreme Court of the State of New York in Nassau County appears to be a ruse. JG Wentworth Is set to receive the payments and likely aggregate them into a securitization that will be sold to institutional investors as they do.
The proceeds of the 2018 transaction were gone in less than 3 months as the young man is now seeking to sell his remaining 7 figures of long future life contingent payments to raise a few hundred thousand dollars. The story he told to would be buyer this month, is the same apparently phony story that was in his affidavit on the JG Wentworth deal.
Four years ago, this young man had an unbelievable structured settlement and did not have to worry about money. Set for life, the New York resident had a triple tax free life time income with guaranteed increases. He had an income that was about double that of the net average wage for New York State and it was triple tax free.
First he got screwed because of an opportunistic vulture factoring company, which forum shopped him from New York to Florida before 2016 Florida SSPA reforms, but the recent stuff is in large part on him. There is a good chance that this man will shortly have nothing left, if one of the lower echelon of the structured settlement secondary market takes the deal and somehow finds that one snoozy New York judge to rubber stamp the deal.
The young man really did get massively screwed on that first deal. Devoid of any financial counselling, before or after the deal, the young man's financial life unraveled and is rapidly tumbling to what may prove to be a wretched end, one that could soon see the man begin to suck resources from the taxpayers of the State of New York. That's neither the way it was supposed to be, nor the way it is supposed to be. The young man's tumble is a strong reason for there to be mandatory independent professional advice for proposed sales of structured settlement payments involving under 25 year olds, and anyone else who may not be financially mature and vulnerable. The recent history of the structured settlement secondary market is pock marked with stories of the young, immature and/or impaired getting shafted.
The all too common and abysmal practice of slick structured settlement factoring company representatives, getting the annuitant to sell early year payments sets the young adults up for failure. The factoring company representatives are often unlicensed, not credentialed and lacking transition expertise and yet providing harmful financial advice to young people in many cases.
What should concern state regulators is that while we know a lot of what is going on from what has been uncovered in the last 6 years, we still don't know what we don't know.