Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews

Judge in Niagara Foils Structured Settlement Factoring, Cites Bob Dylan Rejects of Boca Broker

by Structured Settlement Watchdog

The New York Structured Settlement Protection Act did its job again

Niagara Judge Matt Murphy said February 17, 2021 "that approving the petition of Tiger Parrish LLC  would effectively deprive New York courts of their role

"Tiger Parrish" foiled on structured settlement protection fair way

under the Structured Settlement Protection Act and transfer that role to Mr. Eglow, who is not bound by the statutory and precedential standards*. The Court cannot abdicate its responsibility and thus denies the Petition"

*In showing that judicial wit is not dead, Judge Murphy buffaloed the petitioner with a footnote "When the Nobel Prize winner Robert Zimmerman, a/k/a Bob Dylan wrote, 'Ease my money crisis now I need something to support me And only you know how, 'he may have been thinking of the SSPA, not a financial investment firm".

Court Was Not Impressed With Use of Funds From Prior Transactions

Disclosure of prior transactions is important information for a judge to have in their review of structured settlement transfers.  My readers have seen from my report of the Barber case where an alleged lack of disclosures of prior transactions by a company controlled by the President of NASP, began the financial rape of a structured settlement of a Pennsylvania minor starting from when he was only 10.

in the six page decision in the Monagan case, Judge Murphy noted that in addition to receiving $500,000 in June 2017, the would be seller was to begin receiving almost $6,000 per month beginning in July 2017. That money, almost $72,000 per year, is not, as far as the Court is aware taxable. It is inconceivable to the Court that the would be seller was not able to live comfortably on that amount, yet shortly thereafter, he received payment of $115,0000 from a different petition. Subsequently the monthly amount received from the structured settlement was reduced accordingly.

Judge Murphy was not impressed or assuaged with submissions by Jeffrey Lewis Eglow, a Boca Raton financial adviser, which projected lofty returns and, as I wrote in a prior post, failed to take into account taxes. To wit "Although Mr. Eglow has provided information substantiating that an investment of the proceeds of the structured settlement transfer will result in a greater monthly income stream at this time, there is no guarantee of that income stream, unlike the monthly annuity payments that Mr. Monagan now receives. but more importantly neither Mr. Eglow nor Mr. Monagan have adequately addressed the issue of liquidity. Mr. Monagan's history of financial mismanagement strongly suggests that allowing him unfettered access to almost $900,000 would defeat the purpose of the SSPA and would not be his best interest.

Obviously, if Mr. Monagan experiences an emergency or unforeseen or uncontemplated hardship , he is free to seek the transfer of funds with court apporval, as he has done previously"

Terrence Taylor Disaster Would Not Have Happened in New York

Portsmouth Circuit Court has been a notorious structured settlement factoring hellhole for annuitants.  Somehow 10 transactions were approved for annuitant Terrence Taylor in less than 2 years, most of them by now retired judge Dean Sword, in what could be described as one of the low lights of his career. It should be clear to anyone with a pulse, that had Judge Sword had made a modicum of effort to question so many transfers in a short space of time, like Judge Murphy has with just one or two in the Monagan case, then a stable financial life might have been saved.   Ironically, according to the Taylor Complaint, Jeffrey Lewis Eglow was pitched as financial adviser to Taylor by the Bexhill (Client First) representative.

 

 

 

 

Novation Funding's Relentless Efforts to Grab Lead Paint Victim's Structured Settlement

 by Structured Settlement Watchdog

The Junior Matos case is another recent example of how structured settlement factoring companies/settlement purchasers take advantage of vulnerable personal injury annuitants for massive profits, manipulative tactics, and in some cases questionable and unconscionable methods.

Junior Matos-Dejesus is a 26-year-old Hispanic male who suffered lead poisoning as a child. The settlement of his case resulted in a structure with Metropolitan Life that would pay the following periodic payments:

Starting 12/26/2009 $2,092.00 a month for (360) payments through and including 11/29/2039 and for life thereafter with a 3% annual increase every 12/26:
Total Guaranteed Payments: through 2039: $1,194,333.24 

At age 24, just four months after Judge Norma Ruiz approved his first transfer in Bronx County, NY, Junior Matos was contacted by a third-party factoring company called Novation Funding. Novation Funding is also known as Novation Settlement Solutions (f/k/a Novation Capital) and several other LLC and DBAs. As I have documented in prior posts, Novation continues to fraudulently advertise maximum lump sum payouts and has taken advantage of young minorities, most notably Cedric Martez Thomas, who was financially raped for in excess of 1 million in profit spread after being groomed by Novation. Novation attempted multiple transfers with Junior Matos; one time in New York County, NY and twice in Bronx County, NY, but all three attempts were denied by astute New York Supreme Court judges. The denials were primarily due to Junior receiving $170,000.00 four months prior with nothing to show for it, and not being in the best interest of Junior’s 4-year-old son.

IN RE: JUNIOR M., OF THE PETITION FOR APPROVAL OF THE SALE AND TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS IN ACCORDANCE WITH GEN. OBLIG. LAW SECTION 5-1701 v. X
April 03, 2017
NY BRONX SUP. CT.
0022650/2017
CIVILJudge(s): NORMA RUIZ
Approved

2. RAINBOW ROAD v. METROPOLITAN LIFE INSURANCE COMPANY, METROPOLITAN INSURANCE & ANNUITY COMPANY AND JUNIOR MATOS (Novation)

August 25, 2017
NY NEW YORK SUP. CT.
0157646/2017
CIVIL Judge(s): SCHECTER, JENNIFER G.
Denied    Download NY County 0157646-2017 denial 10-5-2017

3. IN RE: LONEBARK, LLC FOR JUDICIAL APP ROVAL OF THE SALE AND TRANSFER OF STRUCTURED SETTLEMENT PAYMENT RIGHTS PUR v. METROPOLITAN INSURANCE AND ANNUITY COMPANY, METROPOLITAN LIFE INSURANCE COMPANY AND JUNIOR MATOS (Novation)
September 06, 2017
NY BRONX SUP. CT.
0028383/2017
CIVIL Judge(s): ALISON Y. TUITT
Denied

4. LEADER, ORANGE v. METROPOLITAN LIFE INSURANCE COMPANY, METROPOLITAN INSURANCE & ANNUITY COMPANY AND JUNIOR MATOS (Novation)

November 10, 2017
NY BRONX SUP. CT.
0030771/2017
CIVIL Judge(s): ROBERT T. JOHNSON

Denied 

5. BOGMIRE SERVICES V. J M (Novation)

February 13, 2018
FL PALM BEACH 15TH JUDICIAL CIR. 2018CA001844 CIVIL
Judge: Donald Hafele
Canceled    Download 502018CA001844XXXXMB_2 Palm Beach County 2-13-2018 Denied

 

6. R MUY LLC (JG Wentworth) V. JUNIOR MATOS DEJESUS

March 28, 2018
FL PALM BEACH 15TH JUDICIAL CIR. 2018CA003780 CIVIL
Judge: Edward Artau
Approved    Download Matos Approved 4-25-2018 JGW

The original transfer agreement filed in New York between Novation Capital and Junior Matos is as detailed:

Selling
(Buyout of remaining Guaranteed Payments on the policy)
Starting 12/26/2027 $3,561.49 a month for (144) payments through and including 11/26/2039 with a 3% annual increase every December 26th.
Purchase Price: $115,895.00
Total Aggregate of Payments: $606,537.26

EAR: 10.49% 

According to our source, Novation Capital would have profited roughly $137,000.00 from this transaction if it were approved, receiving MORE money from the policy than the actual policy holder cashing out, all while the reps from Novation try to build a “trusting friendship” and “long-term relationship” with Junior just to “get the deal done”. Novation Capital,  which is located in West Palm Beach Florida, flew representatives out to Junior’s hometown in New York, met his family, friends and child, took him out to lavish dinners, gave him “advances” to “hold him over”, but were denied in three structured settlement transfer hearings by 3 separate New York judges (two in the Bronx and one in New York County) under three separate aliases. 

In the beginning of January 2018, after Junior got into an altercation where he was almost stabbed to death, suffering a severely damaged his left hand. Novation took this as the perfect opportunity to fly out their representatives and pitch that “new life” in Florida to Junior while he was sad, vulnerable, and on medication from surgeries done in the hospital. They literally went to his hospital room, and just days after he was released from the hospital Junior was on a plane with the Novation reps, off to West Palm Beach, FL to attempt the transfer in Palm Beach County, FL

The new Novation "deal" using the Bogmire alias, was worse than the New York deals.

Selling
(Buyout of remaining Guaranteed Payments on the policy AND 9 years of Life Contingent pays) Starting 12/26/2027 $3,561.49 a month for (144) payments through and including 11/26/2039 with a 3% annual increase every December 26th
AND
Life Contingent pays starting 12/26/2039 $5,077.83 a month for (108) payments through and including 11/26/2048 with a 3% annual increase every December 26th.
Purchase Price: $137,500.00
Total Aggregate of Payments: $1,225,571.64
EAR: 11.91%

Compared to the previous transfer attempts in NYC, on this deal, Novation Capital tacked on $619,034.38 worth of life contingent payments on this transfer while only offering $21,605.00 more on the purchase price, still profiting a massive amount of roughly $300,000.00 short of where Junior could have negotiated if guided correctly. This was a totally unnecessary move but Junior claims he never noticed. Novation clearly sensed an opportunity to take advantage of the fact Junior being a lead poison case, with no high school diploma, no financial guidance, and trusting people who he described as “like family at the time.”

Our source, which operates a unique business that helps prospective sellers, relates that Junior Matos has lived with his mother his whole life. He has never had a job. He has never had a (driver's) license. He did not graduate high school. He has a 4-year-old child. His current monthly annuity check ended in July and he was due to sell the remaining of any and all future income to Novation Capital for $137,500.00. As you will read on, and with their help, Junior did not become another victim of Novation or the factoring industry as a whole.

Our source, who also has worked for a Florida factoring company and has inside knowledge of the structured settlement secondary market says from their experience "and a firm fact, all companies that purchase structured settlements will take advantage wherever possible and whenever the opportunity presents itself. Certain companies will bend the rules and even break the law, but they will all rip their clients off and shortchange them whenever possible. They will all try every method to convince someone to sell their payments and as much as possible"

When Junior was relocated to Florida, he was originally worried about just getting his deal done. Junior was taken by Novation reps to Fairway Vista Apartments located at 1951 Brandywine Road, West Palm Beach, FL 33409, (just 9 minutes away from the Novation West Palm Beach headquarters office at 1641 Worthington Rd Ste 410 West Palm Beach, FL 33409-6707) and where purportedly Novation has a business agreement with management for short-term monthly leases. According to our source, management at Fairway Vista became very familiar with what was about to happen to Junior and helped him as much as possible once they were aware of what Novation had done/was attempting to do. They also informed our source that Novation used that location/property many times)

Originally, Novation Capital wrote out a check paid in full to Fairway Vista Apartments for Junior’s 3-month lease. They also helped him set up with electric and cable in his name. These accounts were set up and paid monthly on auto withdraw with a Novation credit card.

Junior was given advances via Western Union to help pay for other expenses. He was also given a prepaid phone (“burner phone”) to use so that he could not be contacted or reached by “competitors”. He was told not to answer his door or, Novation reps threatened, he would “lose everything.”

Novation reps took Junior to a thrift store where they got him a two-seater couch, a mattress to sleep on, and gave him a Novation towel to shower with. Since he does not drive, Novation reps would come over roughly twice a day to bring him food like Chick-Fil-A, and give him encouraging pep talks about how he is going to have over $130k, how he is going to buy his own new condo, how he is going to buy a brand new car, how he is going to go to the outlets and come out with bags of new clothes and put them in the trunk of his new car with the air condition blowing in his face. A rosy picture painted by the Novation that just makes no sense if you understand the math. Our sources have put in writing that they personally witnessed these talks.

The Fracas at The Palm Beach County Courthouse

Our sources found Junior's pending case online but his information was redacted. It wasn’t until March 12, 2018 (at the hearing date) when Judge Donald Hafele ordered the full name of the respondent (Junior Matos) be listed on the petition be listed, that Junior was able to be contacted at his apartment at Fairway Vista. After our source reviewed every page of the documents filed in Palm Beach County (see #4 above) it became apparent that Junior Matos, had absolutely no idea that he was selling his Life Contingent payments in this deal. He expressed that he understood they were only available if he were living at the time and he was saving them as his insurance for the future of himself and his son. This really shocked him. Our sources also explained that even if Junior were not to sell the life contingent payments, he was still getting a horrible deal, and that they could help him negotiate a new deal where he keeps his life contingent payments and receive a lot more than $137,500.00.

Even after being aware of how Novation was taking advantage of him, Junior still wanted to work with Novation because he felt a sense of loyalty since they had “helped” him out the last few months. He felt they were really his friends, and felt it was the right thing to do. One of the reps, Norman Gonzalez, claims he was from New York City and looked at Junior like a son/little brother. They conversed in Spanish and he seemed to be really out to help Junior. So even after learning of their true intentions, Junior wanted to still make sure they had his business. Junior also did want to remain living in Florida.

Our sources explained that he can still work with Novation, but he would have to go to court on the scheduled date which was continued to 3/21/2018 and let the judge know he did not want to move forward with the deal. This would allow him to negotiate a new deal without his Life Contingent Payments included. Junior agreed. So for the next week or so before court, Junior did not let on that he was going to tell the judge to cancel his deal.

The morning of March 21, 2018, our sources assisted Junior to court to make sure everything went as planned and to give him support. There were 3 representatives present at the court house, from Novation. Norman, Cory, and Chris. There were also 2 attorneys. “There was an attorney named Scott Topolski, who was due to represent Novation (Bogmire). Another attorney named Scott Weires,  was there to represent Junior. Novation hired an attorney to represent Junior, even though they were the adverse party on the case”.

Our source relates "When we arrived at the courthouse, Norman and Cory (Novation Reps) were standing outside the courthouse with attorney Scott Topolski. Norman immediately started yelling at Junior. Screaming at him. He was telling him that he’s a sellout for trusting these gringos. (He apparently thought our sources were another purchasing company of some sort, while there Was a gauntlet of representatives from a few companies trying to hijack Junior outside the courthouse). It was mayhem outside the court house. Junior was very shocked and upset. I’m not sure if he knew who to believe at first. Cory was standing behind our source "thugging" that he was going to “f*$& him up”. Norman was literally chest bumping and talking down to Junior. The attorney walked away."

He continues "Once inside, Norman tried to step in between Junior and I in line at Palm Beach County court security. He wasn’t successful and security took notice. Once through security, they again started yelling at Junior and a bailiff had to calm things down. Norman threatened to sue Junior and “ruin everything in his life”. Attorney Scott Topolski then came over and tried to pull Junior aside. Junior stated he will talk to him but only with our source present".

He continues "As we were leaving the courthouse, we were surrounded by the Novation reps in the elevator as they held the door not to let it close. They made physical threats to Junior and myself. They followed us outside.  Even though Junior stated he would call them later, they (Novation reps) still surrounded him outside court. They were relentless and laced Junior with profanities, legal threats, and physical threats to myself as well". I’d never seen anything like it in any business, period.

Junior could barely speak. He stated that he had never experienced a situation like this, was extremely uncomfortable, and had no interest in working with Novation moving forward and would like to start his new transfer with a new a company. Even though the case was continued with Novation, Junior did have the ability to go elsewhere."

Our source took Junior back to his office and within a few hours Junior had a new purchase price of $245,000.00 selling his intended payments through 2039, not 2048. This deal enabled Junior to receive $129,105.00 MORE than originally offered by Novation and SAVE $619,034.38 worth of payments in his policy. His effective annual interest rate was less than 6% and its was shopped  to about 6 different companies over the course of the day, using our source's skills/expertise.

The new transfer agreement filed in Palm Beach County, FL between JG Wentworth and Junior Matos is as detailed:

Selling
(Buyout of remaining Guaranteed Payments on the policy)
Starting 12/26/2027 $3,561.49 a month for (144) payments through and including 11/26/2039 with a 3% annual increase every December 26th.
Purchase Price: $245,000.00
Total Aggregate of Payments: $606,537.26
EAR: 5.93%

Our source continues that "Novation Capital did not stop there, they showed up multiple times to Junior’s apartment trying “outside the box” techniques to get his attention.

On or about Saturday March 24, 2018 Junior Matos contacted our source. "Apparently Novation had been knocking on his door for a half hour and he told them through the door that if they didn't leave, he was going to call the cops.  Novation left and came back 15 minutes later, so Junior did call the police".

Another attempt by Novation included ordering Dominos Pizza to Junior’s apartment, hiding behind the delivery guy until Junior answered, then popping out trying to push his way into his apartment saying “Let’s talk over Pizza!”. Novation Capital also contacted management at Fairway Vista Apartments to see if they could call Junior down to the office without them (him)  knowing they were there, but obviously that request was declined by Fairway Vista. It is also confirmed that Novation reps contacted Fairway Vista Apartments management to request their “commission” off of Junior’s lease".

Junior's transfer with JG Wentworth was ultimately approved in Palm Beach County, FL on 4/25/2018. Our source tells us "that did not go without payback to Novation . Junior paid $14,000.00 back to Novation Capital at the time of his funding for “cash advances” made from August 2017 through March 2018. They used a technique common to the factoring/purchasing industry, where by holding on to their continued case, and even with an approval on a new deal with a new company, the insurance company will not complete final paperwork with an open petition. So they basically held Junior hostage in a sense, unless he pays back the advances, which he was never provided proof of, they would not drop his case"

In a future post we will be profiling the business model of our source, which is not a structured settlement factoring company. They do not buy payments or complete transfers with annuitants. The sources have extensive industry knowledge, expertise, and resources.  They say that in most cases, they assist the annuitant in negotiating with the company they are currently signed up with while awaiting the hearing date. This saves time for the seller, the court, and the insurance company.

 

 

Does NY G.O.L. 5-1708(d) Offer Structured Settlement Annuitants Vulture Protection?

by Structured Settlement Watchdog

Are you a resident of New York who has been threatened by a settlement buyer that has advanced money on a structured settlement factoring transaction, simply because you got cold feet, or otherwise decided to back out?

If the answer is yes, there is something you should know.

New York General Obligations Law  5-1708(d), part of  the New York Structured Settlement Protection Act states unequivocally:

"No payee who proposes to make a transfer of structured settlement payment rights shall incur any penalty, forfeit any application fee or other payment, or otherwise incur any liability to the proposed transferee or any assignee based on any failure of such transfer to satisfy the conditions of this title".

New York General Obligations Law 5-1709 (b), part of the New York Structured Settlement Protection Act states unequivocally:

"Any payee injured by a violation of this title may bring an action for the recovery of damages. The court may award reasonable attorney's fees to the prevailing plaintiff".

Are Settlement Purchasers and Structured Settlement Factoring Companies Violating the Law?

In a recent case, a New Yorker suffering from quadriplegia was given $22,900 in advances by a West Palm Beach Florida settlement purchaser and then sued when he decided to back out, because he thought he was being scammed.  The New York man offered to pay the money back according to his response to the legal complaint to no avail.  The case settled with the New Yorker agreeing to pay back a reduced amount.

It's one thing to help someone not get evicted. It's whole other thing to bait annuitants with serial advances contingent on priced structured settlement deals if this was a good deal and then sue them. New York lawmakers clearly recognized this possibility when they passed the NY SSPA.  On the flip side, there are instances where annuitants attempt to game multiple settlement purchasers for advances.

 

Suffolk County Structured Settlement Transfer | "Rebol Rebol Averted a Mess"

by Structured Settlement Watchdog

A year after throwing his toys out the pram after getting landslided in Palm Beach County elections for county judge, Robert Ostrov tried and failed to get a horrible structured settlement transfer approved in Suffolk County New York for his client Lockwood Funding LLC.  It takes a very "special" lawyer to represent a client that is paying 7% of the discounted present value of transferred payments.

In the Matter of Lockwood Investments LLC v  American Home Assurance Company, United States Life Insurance Company in the City of New York and Wilfredo Gonzalez Index 01973/2017  decided November 1, 2017

Thank God for Hon. William B. Rebolini to whom I have dedicated this spoof of the David Bowie classic: 

Got a Petition in a whirl
Not sure to deny or give it a twirl
Lock-wood, the rate's not alright
Lock-wood, gonna deny you tonight

Rebol, Rebol  Ostrov he jests
Rebol, Rebol averted a mess
Rebel, Rebol how could they know?
Up Theirs, The Transfer Would Go

 

 

234 Counts of Forgery While in the Employ of NYC Personal Injury Firm

by Structured Settlement Watchdog®

While employed at the New York personal injury firm of Paris & Chaikin from July 2010 to October 2013,  Thomas Rubino forged the signatures of 76 New York state judges on structured settlement transfer orders as part of a total of 234 counts of forgery on 117 falsified orders and other documents. 

The story which the industry has known about for 2 years, made the front page of the New York Post with the headline "Law and Forger" (see below).  In addition to its personal injury practice, Paris & Chaikin represented settlement purchasers, such as JG Wentworth, Woodbridge Structured Funding and Stone Street Capital,  in the acquisition of structured settlement payment rights from personal injury victims just like its own clients.

Settlement purchasers, mislabeled structured settlement companies in the Statement of Facts accompanying the Rubino indictment, purchase structured settlement payments rights from the structured settlement recipient and then sell them to third parties or the receivables are packaged into securities and sold to institutional investors.   T

The indictment by the New York DA confuses terms that do not accurately represent the actual events, serving as regrettable evidence of the extent to which the secondary market has thrived on marketing and false advertising, owing to an egregious absence of regulation throughout the United States.

The indictment, published by the New York Law Journal refers to " structured settlement companies buying annuities from the annuity holder".  This is simply inaccurate.

• A company that purchases structured settlement payments is a settlement purchaser.  Hence the trade association National Association of Settlement Purchasers (NASP).
• With a structured settlement, the annuity holder is generally the qualified assignment company. Even if structured settlement payment rights are acquired by transfer, the annuity itself is still owned or held by the qualified assignment company.  To be certain what the correct terminology is let's summarize
• People receiving structured settlements own the rights to the structured settlement payments. They do not own the annuity.
• A structured settlement buyer is paying a lump sum today to the seller in exchange for the transfer of the future payment rights.
• The amount that the seller receives is negotiable and may vary between settlement purchasers.

The New York Structured Settlement Protection Act, requires the approval of a justice of the New York State Supreme Court.to ensure that each transfer, each transaction,  is in the best interest of the annuitant and applicable dependents.

Thomas Rubino was arrested on September 16, 2015. In his confession he stated that he was at first overseen by Ian Chaikin,but over time he worked on cases without oversight.  He summarizes his confession by stating the following: THE FORGED ORDERS OCCURRED BECAUSE OF A COMBINATION OF REASONS:

Rubino said he was:

• Overworked
• Not Supervised
• Not Provided Enough Guidance
• Wanted to Help People Get the Money They Needed

Despite his confession Rubino pled not guilty.

Lawsuits were filed against Paris & Chaikin in June by Woodbridge, JG Wentworth and Stone Street Capital.  60 emails with forged structured settlement orders provided by Stone Street Capital and 57 emails and one fax with forged structured settlement transfer orders provided by JG Wentworth. It appears from the supporting documents that the fraud against Woodbridge was a lottery case.

For more, please read:

The People of the State of New York against Thomas Rubino  Supreme Court of the State of New York,  New York County Index 3525/2015

Criminal Indictment Against Thomas Rubino   Rubino Confession

 

New York General Obligations Law 5-1702(e) Structured Settlement Protections Being Ignored?

by John Darer® CLU ChFC MSSC RSP CLTC

New York State General Obligations Law 5-1702 places a burden on defense lawyers, defendants, in house lawyers for defendants and insurance adjusters based out of New York, having New York adjudicated cases to make certain written disclosures when a structured settlement is negotiated.

New York General Obligations Law Section 5-1702-Structured Settlement Protection Act

In negotiating a structured settlement of claims brought by or on behalf of a claimant who is domiciled in this state, the defendant or defendant’s legal representative shall disclose in writing to the claimant or the claimant’s legal representative all of the following information that is not otherwise specified in the structured settlement agreement...

5-1702 (e) a statement that the claimant is advised to obtain independent professional advice relating to the legal, tax and financial implications of the settlement, including any adverse consequences and
that the defendant or defendant’s legal representative may not refer any advisor, attorney or firm
for such purpose  (emphasis added)

On cases of a highly sensitive nature it is important for Defendants and Defense counsel and mediators not to lose sight of New York General Obligations Law 5-1702 and to avoid the conditioning of money on exclusively using the defense retained structured settlement consultant. While I am not aware of specific cases where a defense lawyer or defendant has been punished for not complying with this New York law, I'm sure that nobody wants to be a volunteer.

Since it is both a recognized and prudent practice today for both parties to have settlement consultants, why put yourself or your client in harm's way?  One suggestion is to have the plaintiff settlement consultant agree to be bound under a confidentiality agreement.

Queens NY Judge's Bad Reaction to J G Wentworth's "Rahman Noodles"

by John Darer® CLU ChFC CSSC RSP CLTC

Queens New York Supreme Court Judge David Elliot had a bad reaction to the structured settlement transfer petition for Allia Rahman served up by the "chefs" at J.G. Wentworth.

In addition to "sending back the meal", because "consumption" of same was deemed not in Rahman's best interest, Judge Elliott's "antacid" of choice is to call for New York legislators to amend the relevant section of the General Obligations Law, to add a discount rate cap, such as the 10% rate cap that applies to New York State Lottery deals and structured settlement transfer rate caps that apply in a few other states, like North Carolina.

The New York Settlement Protection Act is contained within New York State General Obligations Law.

One poignant takeaway from the decision is Judge Elliot's riposte to J.G. Wentworth's use of the common argument that the factoring discount rates are comparable to credit card rates. First, please note that the structured settlement payments in this case are being made by Metropolitan Life Insurance Company, the largest life insurance Company in the United States, and one of the largest in the world. The judge said that Petitioner failed to adequately explain why the guaranteed nature of the annuity payout and the minimal risk involved for Petitioner justifies what the Judge deemed an "exorbitant interest rate".  The Judge noted "that Petitioner (Wentworth) would incur what the Court considers to be significant administrative and legal costs when entering into these transfer agreements is of little concern to the Court.  The General Obligations Law, as well as the statutory intent of the SSPA, require this Court to protect the best interests of the recipient of a structured settlement award, not the profit margins of a company seeking access to its proceeds".

The Matter Of The Petition Of J.G. Wentworth Originations, LLC and Allia Rahman, No. 216362011 (N.Y. Sup. Ct. Dec. 14, 2011).

"Pouring some hot water" on the story, this author would like to disclose that now and then he enjoys a good bowl of Ramen Noodles!
Image: from Wikipedia

 

NY Structured Settlement Protection Act | 2010 Amendment Requires Payee to Attend Hearing

by John Darer CLU ChFC CSSC RSP

New York Structured Settlement Protection Act amendment signed into law in 2010 by New York Governor David A. Patterson (bills S3681/A6766), added a requirement that the structured settlement payee attend the hearing to approve the transfer of structured settlement payment rights.

New York General Obligations Law 5-1705 

1. Approval of transfer shall be by a special proceeding brought on by an Order to Show Cause
2. At this hearing, the payee shall attend before the Court unless attendance is excused for good cause  NY G.O.L. Section 5-1705(e).

Read More

Selling A Structured Settlement in 2024? Get The 411 on Cash Now. Don't Be a Victim (4structures.com)