by Structured Settlement Watchdog®
Recent structured settlement reforms in Maryland can't sweep structured settlement secondary market's dirty laundry under the rug, nor should it.
Members of the National Association of Settlement Purchasers Can't Hide From Their Dirty Laundry
A woman who was found to be functionally illiterate with a fourth grade reading level after suffering lead paint poisoning was able to sell off her structured settlement payments, primarily to Bethesda based Stone Street Capital, according to a CBS News report which aired on Wednesday April 20, 2016. Her lawyer Saul Kerpelman said to CBS "it was impossible that she was able to read and understand the documents that were given to her . Literally impossible." An admission that the deal should not have happened came from Earl Nesbitt, a Dallas lawyer, who represents Stone Street Capital in Texas and also is of counsel to the National Association of Settlement Purchasers. This deal, and many other secondary market deals throughout the industry..."should never have happened'.
Crystal Linton's case has shades of Mary Alice Rose, the case that preceded the blistering front page Washington Post articles in August 2015 that blew the underbelly of the structured settlement factoring industry wide open, stimulating legislator and judiciary outrage that led to rapid sweeping judicial and legislative change in the way structured settlement factoring transactions are handled in Maryland. Soon more dirty laundry of the structured settlement secondary market was exposed:
- October 2015, young New York native Cedric Martez Thomas does a massive factoring deal with Novation Funding LLC DBA 365 Advance selling $6.600,000 of periodic payments starting virtually immediately for $1,037,000, taking advantage of young Cedric for over $1,400,000 spread. More than one company has told us they would have paid $2,500,000 or higher. Young Cedric could have had his cake and eaten it too. Instead he will unfortunately be sucking wind for a long time. Novation Funding, using another DBA Novation Settlement Solutions, continues to grossly mislead consumers in its advertising that it pays the maximum lump sum payouts.
- A December 2015 front page news story in the Washington Post about Terrence Taylor a high value structured settlement annuitant who, through a flabbergasting level of judicial inadequacy in Portsmouth VA, was able to complete 11 structured settlement factoring transactions in 2 years and unload millions of dollars in in payments. Litigation has been pending for over a year and one of the companies sued, related to Client First Funding, yet another NASP member, has settled. The Taylor story led to legislative reform of the structured settlement protection act in Virginia.
- Jose Manuel Camacho, Jr, a sleazy and corrupt now former Miami lawyer and former sponsor of the National Association of Settlement Purchasers who represented companies such as Liberty Settlement Funding, Novation Funding LLC, Annuity Transfers Ltd and CBC Settlement Funding (All of them members of the National Association of Settlement Purchasers) was arrested in October 2015 for forging 7 Broward County Florida judges' signatures on over 100 documents related to structured settlement transfers. Payment have been frozen to investors in the deals until the mess is sorted out. One of the forged Camacho deals involved Earl Berghman a 67 year old Florida resident who was charged an obscene 48.69% discount rate by Novation Funding.
The National Association of Settlements Purchasers mouthpieces' credibility is eroding rapidly as their "it's not us it's them" has spectacularly backfired. Most of the bad news has been coming out about members of NASP.
Following the CBS News Report Stone Street Capital's response was to tweet a picture of young John Travolta with the paraphrased caption " I've got bills they're multiplying", the picture from a movie whose title is a ironically descriptive of the dirty laundry in the industry "Grease".
Best John Travolta movie quotes that could be figuratively attributed to, or used in a discussion of the structured settlement secondary market:
- "Whew, this movie business is tough. I might just have to go back to loan-sharking for a while to get some vacation." as Chili Palmer, in Get Shorty
- "Misdirection. What the eyes see and the ears hear, the mind believes", as Gabriel in Swordfish
- "I ain't your friend palooka", as Vincent Vega Pulp Fiction (could describe the reality of who NASP members truly work for when push comes to shove)
- "Oh, f*ck the future!" Tony Manero, Saturday Night Fever (could be used to describe many NASP members advertising "why wait?" or "no more waiting")
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