by Structured Settlement Watchdog
Sean Peter McManus, a"Snake Oil Salesman" Principal of Patriot Resources, Defrauded Investor and Made Materially False Statements
- According to the FINRA Complaint, during at least the second private placement, McManus, while unlawfully acting as a broker without Commission registration, further defrauded at least one investor by knowingly or recklessly making materially false statements about Nutra Pharma, including that Nutra Pharma had 1300 cobras on a farm in Florida and that the company “milked” the cobras for venom monthly (Para 6 complaint)
- McManus, age 47, from Hypoluxo Florida, worked as a consultant for Nutra Pharma from early 2013 until at least 2017. At times during the Relevant Period, McManus conducted business through Patriot Settlement Resources (“Patriot Resources”), a company for which he served as a principal and that purportedly engaged in the structured settlement finance business. (Para 21 FINRA Complaint)
- The National Association of Securities Dealers (“NASD”)—now the Financial Industry Regulatory Authority (“FINRA”), a self-regulatory organization that operates under Commission oversight—barred McManus from associating with any NASD member in any capacity. The NASD based its bar on findings that McManus purchased shares of stock in the accounts of customers without their knowledge or consent. This ongoing bar prohibits McManus
from associating with any member of FINRA, whose membership generally comprises every broker dealer registered with the Commission, with limited exceptions. (Par 35 FINRA Complaint) Download SEan Peter McManus Finra Brokerchek Barred Detailed Report
- McManus Solicited Investors in 2014 (FINRA Complaint Para 94-100)
Patriot Settlement Resources based in Boca Raton Florida solicits investors to buy structured settlement derivatives with deceptful annuity label
"Once a structured settlement payment stream is redirected via court order to Patriot’s designated assignee, and the annuity issuer and obligor have acknowledged it will comply with the order, the only risk of not receiving payments is associated with the payment making ability of the insurance company".
- Patriot Settlement Resources says "It's a Matter of Trust". I'd say they're worthy of losing that trust. Patriot Settlement Resources fails to discuss the transactional risk in buying factored structured settlement payments streams. Patriot has completely disregarded the Wall case which illustrates the material risks that are involved of investing in factored structured settlement payment streams.
- Patriot Settlement Resources misrepresents factored structured settlement payment streams. In its disclaimer Patriot Settlement Resources intentionally misrepresents that the investments are annuities
"Disclaimer: No securities regulatory authority has expressed an opinion about these annuities. it is an offence to claim otherwise. IRC 5891 Annuities are only offered for sale in the United States and are exempt from registration with U.S. Securities and Exchange Commission."
The National Association of Insurance Commissioners in its Statutory Issue Paper 160 issued, implicitly states that factored structured settlement payment streams are not annuities or insurance products.