Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and Commentary

Patriot Settlement Resources' FINRA Barred McManus Is Sued by FINRA for "Selling Snake Oil" Without a License

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

To wit..

"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.

Patriot Settlements' Poor Taste in Large Lump Sum for Structured Settlement Ad

by Structured Settlement Watchdog®

Patriot Settlement Resources displays incredibly poor taste (buds),  soliciting customers with a really gross image of a smiling woman with white sores on her tongue on the About page of its website. See for yourself.

Now take a look at the close up.   Looks contagious. 

What do you say when you meet a toad?  Wart's new?

Just the latest in social media howlers by structured settlement buyers.  Of all the stock photos in the world, Boca Raton based Patriot Settlement Resources picks that one.  Ewwww!

If you can get past "Iris the Virus"   Patriot asks and answers:

Are you presently locked into a schedule that provides payments over a long period of time?
That payment schedule may have seemed reasonable when you made the arrangement, but circumstances have forced you to accelerate the future payments and obtain a larger sum of cash.

Comment:

If you sell your structured settlement you will only receive a lump sum for a discount off the present value of your future payments.  You will not receive larger sum of cash than if you wait to receive payments. In fact you will receive less, much less.

Besides, how can you think of a large lump sum when those large "white things" are staring at you from that gaping mouth?  

 

 

Testimonials From One Cash Now Pusher Show That All Is Not As Rosy As Stone Street Capital Says

Finally the message is getting through to the factoring industry, some of whom are attempting to defend the "cash now pusher" moniker. In attempting to re-write the dictionary Stone Street Capital's Patricia Laborde says that NOW really means a couple of days, not immediately.

First let's be clear that individual exceptions aside, according to an insider. the factoring industry's poop DOES stink. For example:

"In an industry which I believe has many players with questionable integrity, XXXXXXXX  shines well above the competition".

"I would like to say thank you for everything you did even though you were unable to help us due to another company’s incompetence and what I would consider lawless action".

"You are the only ones that stuck by what you told me. Everything you told me was on the money.  No hassles, no lies and no deceptions".

These quotes appear right on the Patriot Settlement Resources web site.

The factoring industry can thank J.G. Wentworth and those industry lemmings who follow them for the reputation as "cash now pushers". Like "cash now" , "cash now pusher" resonates. As "memorable" and notorious as the JG Wentworth commercials were, in  oversaturating an advertising message that is technically false they did significant harm to the factory industry reputation with attorneys and the perception of structured settlements by attorneys. I'm not making this stuff up, purveyors of competing products are even marketing against it! The perception is that more structured settlements are being factored and thus attorneys are thinking twice about structuring. Add that to certain elements in the factoring industry's reputation for aggressive and/or harassing phone calls to tort victims and the slop "ain't so tasty".

How about Peachtree Settlement Funding's stupiculous "all your money now" plum? I have challenged Peachtree Settlement Funding to prove that it performs as advertised (i.e. ALL THE MONEY AND IMMEDIATELY!) It appears too busy charging high discount rates and bragging about size (of their securitizations) to bother with transparency .

As to Stone Street's efforts to separate itself from the pack, I'm all for it. If you say you give a non recourse cash advance however, then simply advertise it as such instead of "cash now" and don't explain it away afterwards unless you want to look disingenuous.

Boca Raton Structured Settlement Cash Now "Cry Baby" Like Pot Calling Kettle Black?

by Structured Settlement Watchdog

On 5/2/2008 Neil Lemelman of Boca Raton Florida "boo hooed" to the Federal Reserve about "deceptive and unfair tactics of credit card companies under Regulation AA (R-1314):

In a complaint published on the Federal Reserve website the following was attributed to Neil Lemelman: "Please change the deceptive and unfair tactics that credit card companies use in their business practices. It is criminal the way the credit card companies take advantage of the average consumer". Click here for the letter

Funny isn't it that a Neil Lemelman from Boca Raton is the managing member of Boca Raton based "cash now pusher" Patriot Settlement Resources, LLC; they of the "instant cash for your structured settlement" marketing ploy and the "quicker access to the full sum of money due you for structured settlement" falsity.

More of our coverage of  Patriot Settlement Resources, LLC by clicking on the title to the left.

Patriot Settlement Virus Hits 2 Day Mark.

The virus plaguing the Patriot Settlement Resources, LLC web site has hit the second day. Google is still posting warnings  on the search engine results that the (Patriot Settlement Resources, LLC web) site might harm your computer.

Download patriot_settlement_google_search_07012008_virus.pdf

According to its annual report filed April 2, 2008 with the Florida Secretary of State Patriot Settlement Resources, LLC is owned by Neil Lemelman 2799 NW Boca Raton Blvd Boca Raton, FL 33431

Download patriot_settlement_resources_llc_2008_florida_annual_report.pdf

According to Andrew Cravenho of Settlement Quotes, LLC from his "experience anyone's computer that has been infected by this virus is subject to personal information theft. This includes credit card numbers, bank account information and social security numbers )if accessible from computer). The apparent fix is eliminating a small piece of (computer) code".

Why has Managing Member Neil Limelman not put this at the top of his priority list?  Is this the type of response to consumers that the Better Business Bureau had in mind in giving its seal of approval?

Consumers are warned not to click on the the Patriot Settlement Resources, LLC website when such a warning exists, or any website for that matter that contains a warning on the Google search engine listing.

Consumers in California should be aware that effective July 1, 2003,  under the California Security Breach Notification Act (SB1386) any business or agency that uses a computer to store information about a California Resident must immediately notify that individual upon discovering any breach to the computer system upon which this information is stored. Failure to notify could subject the business/agency to civil damages and law suits.

Factoring Company Patriot Hacked? Were Annuitants Affected?

A chilling report coming from Settlement Quotes, LLC suggests that the website of Patriot Settlement Resources "appears to have been hacked over the weekend and is now spreading a series of malicious software from their website". Andrew Cravenho suggests that the Trojan virus affecting visitors to Patriots's website is not hosted on the company servers.

Apparently the virus has been active for about 24 hours and as of this morning Google was posting warnings when the website showed up in their rankings but not on the Adsense (pay per click) results.

Download patriot_settlement_google_search_6302008_virus.pdf

Download explanation_of_google_warning.pdf

Unfortunately this has to be a complete disaster for Patriot Settlement Resources, who repeatedly use the American flag symbol and the seal of the Better Business Bureau to promote "cash now" fraud, falsely imply that tort victims will get the full sum of money due them by selling structured settlement payment rights and who, in my opinion (as a result of such promotion), represent the lowest level of "cash now pusher" filth.

One can't help but wonder what personal identifiable information involving annuitants has been affected by the hacking of Patriot's web site.

More Structured Settlements 4Real commentary on Patriot Settlement Resources

They Call Themselves Patriot (Settlement Resources)?

by  Structured Settlement Watchdog®

In my opinion "Cash Now Pushers" who imply to structured settlement annuitants that they can get "the full sum of the money due them" from a structured settlement by selling their rights to the structured settlement are committing fraud on the most vulnerable of consumers. The fact is that anyone who sells their rights to receive structured settlement payments will NEVER get the full sum of the money due them due to the nature of the transaction that the "cash now pushers" are hustling them for.

One such company, Patriot Settlement Resources further advertises on its blog that selling your payment rights is the best way to access a larger sum without incurring any repayment terms or expense. Any lawyer wanting to prosecute these fiends on behalf of their clients would simply need to obtain a copy of every disclosure Patriot has been required to make under a state's structured settlement protection act to reveal "the expenses". Patriot also uses the American flag symbol to perpetuate these lies.

Download patriot_settlement_resources_the_full_sum_of_money_bs.pdf

In my opinion Boca Raton Florida based Patriot Settlement Resources is not a company to be trusted due to its continued false misleading and advertising.  That is something the Better Business Bureau didn't catch.

"Take your stinking paws off me, you damned dirty ape! ..."

by Structured Settlement Watchdog®

The immortal words of George Taylor could be uttered today by the structured settlement industry and plaintiff lawyers to structured settlement aper , "cash now pusher" and American flag symbol abuser Patriot Settlement Resources. We have no alternative but to dishonor these scoundrels with the relevant morphed image of "cash now pusher" and "structured settlement aper".

Download patriot_settlement_resources_instant_cash_bs.pdf

Structured settlement apers are a case of "monkey see monkey do" but in this case it's not flattering.

Patriot Settlement Resources Lie Number 1

Patriot Settlement Resources claims to be a "structured settlement company". It isn't.  No matter how hard these unlicensed fakers try, Patriot is a factoring company.

Patriot Settlement Resources Specious Claim

They Claim: Get the best instant cash deal around.  Are there any instant cash deals around for structured settlement payment rights? Attorneys General are urged to audit all of the financial transactions of Patriot Settlement Resources and demand proof to support this claim.  Its highly likely that there is a significant timing mismatch between what is promised in the advertising and what is actually delivered.

The President of the National Association of Settlement Purchasers (NASP) has stated that factoring of structured settlement payments is NOT like going to the ATM. It is most certainly NOT like buying a scratch off ticket at your local newsstand.

Patriot Settlement Resources Lie Number 2

They claim: A structured settlement is a monetary award like a lottery payout, inheritance or personal injury settlement. Instead of all of the money being paid out to you at once, small amounts of the total sum are released according to a fixed timetable – every month or every year – until the sum is paid in full.

A structured settlement is NOT a monetary award. The illerati keep pushing this falsehood. A structured settlement is a compromise negotiated and signed off by all of the parties to the agreement.

The illiterati falsely imply there's no implicit interest in a structured settlement. A person receiving a properly designed structured settlement will receive more than the initial cost of the structured settlement in future payments. A former child plaintiff, now 18 and with a lifetime payout could ultimately receive many mutiples in excess of the cost of the structured settlement.

Do you want a "cash now pusher" like Patriot Settlement Resources advising you, your kids, your loved one with a disability, your clients? Teenagers, 18, 19 and early 20 year olds Just "Say NO" To Pushers Of The New "Smokeless Crack" That Can Make Your Long Term Financial Security "Go Up in Smoke"

If you have the "Cash Now" DTs STOP and speak to a financial advisor, settlement planner. You may discover that there is an alternative.

Will "Scratch Off" Factoring Arrive At YOUR Local Bodega?

by Structured Settlement Watchdog®

Got an itch?

"Trust the experts at Patriot Settlement to help you through selling your annuities and get instant cash for your structured settlements" - so states "cash now" pusher-Patriot Settlement Resources, LLC

Other "patriotic" quotes

"It is obviously good and proper to respect the U.S. flag, perpetuated with the blood of American heroes. On the other hand, it can be a fatal mistake, a nuking of the Bill of Rights, not to recognize scoundrels who wrap themselves in the same flag to cover up their "taking advantage" of the American common people." paraphrased from Sherman Skolnick

"A thoughtful mind, when it sees a Nation's flag, sees not the flag only, but the Nation itself; and whatever may be its symbols, its insignia, he reads chiefly in the flag the Government, the principles, the truths, the history which belongs to the Nation that sets it forth". Henry Ward Beecher

Why does "cash now" pusher Patriot Settlement Resources, LLC use the American flag to perpetuate an itch that can't really be "scratched" (off)?

"Truth is a demure lady, much too ladylike to knock you on your head and drag you to her cave. She is there, but people must want her, and seek her out.” William F. Buckley, Jr.

Is "Cash Now" For Structured Settlements Pitch a FRAUD on Consumers?

by John Darer® CLU ChFC CSSC

The annoying television and internet ads by companies that purchase structured settlement payment rights have been inducing consumers with claims that the advertisers give them "cash now". The word "now", in the context used to induce consumers, clearly implies "at once" or "immediately". So, in the context used, isn't "cash now" really a fraud on consumers?

Doesn't the recent statement of the President of that industry's professional trade association (NASP) shine the light on the potential fraud and support this theory?

"Today?" Wow! You are absolutely right on this one. The "instant gratification" pitch is wrong. And it makes no sense for us because when we talk to prospective customers, we always tell them that the process takes months. We provide a service that allows people to meet life's changing needs; we're not an ATM machine".

Robin Marc Shapiro, President of the National Association of Settlement Purchasers April 11, 2008  (underlines for emphasis)

Clearly if the settlement purchasing industry knows at the time the advertisements were published that "cash now" is untrue then why are its members advertising it? More importantly why aren't attorneys general locked and loaded?

Are you a financier participating in a deal with an entity that advertises "cash now" for structured settlements but it's known that it can't be delivered as advertised? What's your exposure as a result of that association?

Unless they can supply absolute proof that they can supply cash at once or immediately, the settlement purchasing industry would be wise to cease "cash now" sales pitches for the benefit of consumers.

No doubt some clever company will try to justify itself by stating that a consumer could REALLY get "cash now" if they are willing to pay a higher price (to absorb the 40% excise tax that the Feds would levy on the factoring company for not obtaining a required qualified court order to avoid it set forth in IRC 5891). If the 40% excise tax business is what is being targeted then where is the disclosure in the advertising?

Under the Federal Trade Commission Act

• Advertising must be truthful and non-deceptive;
• Advertisers must have evidence to back up their claims; and
• Advertisements cannot be unfair.

Clearly there's a line to be drawn between a consumer needing "cash now" and the factoring company's ability to deliver "cash now".  Companies that purchase structured settlement payment rights, or brokers facilitating same should not be permitted to imply in oral or written communication, of any sort, that consumers will get "cash today" or "cash now" in relation to a structured settlement factoring transaction.

Click here for the Federal Trade Commission's FAQ on Truth In Advertising

This is a partial List of companies that use "Cash Now" in advertising to consumers on April 13, 2008:

Structured Asset Funding (a/k/a 123 Lump Sum) Download structured_asset_funding_cash_now_4132008.pdf and Download http___www.structuredassetfunding.pdf AND Download http___123lumpsum.pdf (claims you can get a lump sum today)

Woodbridge Investments Download woodbridge_investments_cash_now_4132008.pdf  and click this link where Woodbridge adverstises that you can sell your structured settlement for cash instantly

Peachtree Settlement Funding (falsely advertises "get all your money now")
Download peachtree_all_you_money_now_4132008.pdf

Patriot Settlement Download patriot_settlement_cash_now_4132008.pdf

Nationwide Funding Resources Associates

Settlement Money Now

FS Gerard

Via Trust Inc.

JG Wentworth  Download jg_wentworth_cash_now_4132008.pdf

Diversified Investment Services

Rapid Settlements, Ltd.

Washington Square Financial, LLC

Prosperity Partners

Stone Street CapitalDownload stone_street_capital_cash_now_4132008.pdf

American Settlement Funds (alter ego of JGW)

FDR Resources- a/k/a 'money-now.net (advertises "structured settlements cash today")

American Financial Freedom