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

Symetra Hit With Class Certification In Structured Settlement Lawsuit Over Affiliate Factoring Operation

by Structured Settlement Watchdog

Seattle based Symetra Life Insurance Company Slammed with Structured Settlement Class Action Certification

A nationwide class action lawsuit certified against Symetra Life Insurance and its affiliate Symetra Assigned Benefits Service Company (“SABSCO”) alleges that Symetra and its affiliate violated RICO, the Washington Consumer Protection Act, civil conspiracy, unjust enrichment, and their contractual rights. In her August 3, 2022 order, Judge Marsha J. Pechman of the United States District Court for the Western District of Washington granted class certification in White, et al. v. Symetra Assigned Benefits Service Company, et al. United States District Court Western District of Washington
Case No. 20-cv-01866 and certified the following class:

“All persons who are or were, at any time:

1. annuitants of [a structured settlement annuity (“SSA”)] that contemplated life contingent payments issued by Symetra AND
2. who subsequently sold to a Symetra affiliate the right to receive payments from that SSA in a factoring transaction.”

The Court denied Plaintiffs’ Motion to Certify a Class as to their breach of fiduciary duty claims.

Plaintiffs brought this class action lawsuit on behalf of themselves and all others who, in settling underlying tort litigation, became the beneficiaries of a Symetra Life Insurance structured settlement annuity, and who then sold the rights to their future annuity payments to SABSCO or another Symetra affiliate.

Symetra Used Position of Trust

Plaintiffs’ amended complaint seeks redress for injured persons and families who relied on Symetra to safeguard their loing-term financial well being , alleging that Symetra Defendants solicited Plaintiffs’ rights to their future payments as part of a business scheme that used their position of trust as issuer and owner of Plaintiffs’ structured settlement annuities. Plaintiffs allege that Defendants leveraged their knowledge and unequal bargaining power to profit by purchasing Plaintiffs’ future payments at a steep discount in factoring transactions. As a certified class, Plaintiffs are one step closer to holding Symetra Defendants accountable for these practices.

Read August 3, 2022 Order Approving Class Certification in White v Symetra Life Insurance Company SABSCO 8-3-2022

The Responsibilty of Settlement Planners and Plaintiff Structured Settlement Brokers in Symetra placements 2006-2012

I Told You So About Symetra and Clearscape in 2006, 2007, 2008, 2009, 2010... Did Your Settlement Planner?"

Symetra's factoring operation was well known in the structured settlement industry from at least January 2006 until Symetra stopped writing structured settlement annuities in 2012.

Symetra was pressured to resign from the National Structured Settlements Trade Association  (NSSTA) as its factoring activity was incompatable with the mission of NSSTA.  To be clear, Symetra actually established a factoring company called Clearscape Funding and solicited not only Symetra (and former SAFECO) annuitants, but externally as well. 

I personally sent a strongly worded letter to Symetra on January 23, 2008 withdrawing my appointment in disgust  (see Writing on the Wall below entry for January 23, 2008).  I cannot say the same for other settlement planners who, despite public knowledge of the existence of Clearscape and what Symetra was doing, continued to place business with Symetra.  

• How many of these settlement planners "romanced" trial lawyers with lavish donations to state and local trial lawyer associations, who turned the other cheek to recommendations and proposals to place business with a lower rate company that had a known factoring company?
• How many settlement planners' put their clients into Symetra structured settlement annuities out of a single claimant QSF, despite advanced knowledge of Symetra's factoring operation?
• How many times did settlement planners' often belicose and bombastic rhetoric about dastardly approved lists led to a Symetra structured settlement annuity placement?
• How many settlement planners continued to make recommendations, to trial lawyers and their clients, to place their hard fought for settlement dollars into Symetra, DESPITE knowing of the existence of Clearscape?
• How many settlement planners solicited customers using the false statement that Symetra was a "Berkshire Hathaway Company" to "do-si-do" the known Clearscape issue?

Will the Symetra Structured Settlement Class Action bring a reckoning to Symetra and shine the light on those who placed their clients in harm's way? 

The Writing was on the Wall

• May 26, 2010   "If You Don't Use Clearscape You're Lump Sum Will Be Taxable"
• May 5, 2010  Puffery The Magic Dragon
• May 5, 2010  Structured Settlement Accounting and Insurer Investment Challenges on Long Tail Liabilities
• March 25, 2010 Symetra Structured Settlement Annuitant Has Concerns About Symetra Postcards That Solicit Cash Now
• January 28, 2008  Symetra "Hard Sell" v Allstate " AFEN"
• January 23, 2008  Symetra Doesn't Really Want to Be in the Structured Settlement Business Do They?
• October 29, 2007 Letter from Jesper Hansen, a Sales Specialist from Symetra to Los Angeles couple regarding SABSCO buying
• August 10, 2006  My "Rights" to be a Spendswift?
• April 19, 2006   Symetra Be Clear About Clearscape! 
• January 14, 2006  Boo Symetra and Boo Hoo Too

 

 

 

 

Chronovo Could be Promoting Annuities Using Red Sox Legend Instead of Bobby Bonilla, NY Mets Madoff Misery

by Structured Settlement Watchdog

Chronovo, which is  based in a suburb of Boston Massachusetts continues to promote annuities using "Bobby Bonilla Day", a “holiday” of sorts celebrated by baseball fans, who use memes and jokes to talk about how the New York Mets pay someone who hasn’t been on the field since 2001 over a million dollars every year until 2035 when there are far better and more relevant choices to illustrate the value of annuities using other baseball players and other sports figures.

The Gratuitous Trivialization of Madoff to Promote Annuities

Why would a rerun of "Creepend at Bernies" be deemed essential to Chronovo to promote the value of annuities, specifically structured settlement annuities?  Bernie Madoff's fraud was the 2nd biggest in US History. Having a value proposition that is NOT gratuitously intertwined with a Bernie Madoff victim would be more approriate. For back story see Madoff Investment Scandal and how it hit former Mets Principal Owner Fred Wilpon 

Unfortunately, but not unsurprisingly, this seems to have been lost on Chronovo, which highlighted the Madoff connection in its most recent Chronovo Chronicle celebrating Bobby Bonilla Day. At least the lack of depth perception stopped short of trivializing Joey Gargan, another convicted felon, a former structured settlement broker and company owner and "Kennedy connection", who remains incarcerated at FMC Butner, where Bernie drew his last breath in April 2021.

There's Nothing Unusual About Deferred Payments to Athletes But There Are Much Better Examples

There's nothing unusual about a team paying athletes deferred annuity payments, but Bobby Bonilla is no Ken Griffey, Jr. or
Manny Ramirez, both of whom have bigger annuities and arguably had greater career accomplishments, by quite some distance. In my opinion Griffey Jr and Manny Ramirez in particular are better examples to promote annuities for any company, let alone, a company from Boston.

I'm a lifelong New York Yankees fan, but in this case, since we're discussing annuities, I'm waxing lyrical about a Red Sox legend in an effort to change the narrative of certain annuity promoters' (at least structured settlement annuity promoters) narrative from Bobby Bonilla to other athletes who had better careers and more significant annuities. 

Manny Ramirez  was a Boston Red Sox and Major League baseball legend and 12 Time All Star.  Manny was a complete hitter, who hit for both power and average, and recognized as one of the best right-handed hitters of his generation, Ramirez finished his career with a lifetime .312 batting average, 555 home runs (15th all-time), and 1,831 RBI (18th all-time). In 111 postseason games, Ramirez posted a .285 batting average with 29 home runs and 78 RBI in being on 2 World Series winning teams.

Ken Griffey Jr.

Griffey Jr.  630 HR,  .284 BA,  1836 RBI,  184 SB, .538 SLG   Griffey, Jr. is a Hall of Famer,  a thirteen-time All-Star and one of the most prolific home run hitetrs in baseball history, 7th in MLB history. Griffey  won ten Gold Gloves as a center fielder and tied for the record of most consecutive games with a home run (eight, with Don Mattingly and Dale Long. He's been on the cover of the box of more than one variety of Wheaties for goodness sakes!

The Manny Ramirez Annuity

Manny Ramirez signed a $160M contract with the Boston Red Sox in 2008, with deferred $1.968MM/year increasing at 0.25% from  2011-2026 (16 payments) Total annuity payout $30,077,936. Here is the schedule: 

2011 — $1,968,677   2012 — $1,973,599  2013 — $1,978,533   2014 — $1,983,479  2015 — $1,988,438  2016 — $1,993,409

2017 — $1,998,393   2018 — $2,003,389  2019 — $2,008,397   2020 — $2,013,418  2021 — $2,018,452  2022 — $2,023,498

2023 — $2,028,557   2024 — $2,033,628  2025 — $2,038,712   2026 — $2,043,809  Source: Boston.com

 

Just in case you were wondering, says Chronovo, the total payout to Bobby Bonilla at the end of this road in 2035 will be $29,831,205.00.  Ouch!

 

Funnily enough, in a 2020 article Sportscasting.com reported that Red Sox Will Keep Paying Manny Ramirez Until He Turns 54

The Ken Griffey Jr. Annuity

Griffey, Jr. has even been on a Wheaties Box

Ken Griffey, Jr.  $112M contract deferred $3.59MM/year from 2009-2024. Despite being retired and not playing for the Reds since 2008,  the 13 Time All Star Hall of Fame slugger Ken Griffey Jr. is the 6th highest-paid players on the Cincinnati Reds.  Total Deferred Payout $57,440,000

Just to remind you in case you were wondering, the total payout to Bobby Bonilla at the end of this road in 2035 will be $29,831,205.00. Ouch!

Better Career Stats than Bonilla, Better Annuity than Bonilla

Ken Griffey, Jr.  $112M contract deferred $3.59MM/year from 2009-2024. Despite being retired and not playing for the Reds since 2008, Hall of Fame slugger Ken Griffey Jr. is the 6th highest-paid players on the Cincinnati Reds. 

Bonilla       287 HR   .287 BA    1173  RBI   48 SB     .472 SLG  6 Time All Star, One time time World Series winner (with the 1997 Florida Marlins)

While a quality player, Bonilla's career stats performed well below Manny Ramirez and Ken Griffey Jr,  his peers with deferred payments

Bobby Bonilla himself was quoted in the New York Post on July 1, 2022 as saying "“I’m probably more famous for that deal than the career I had” 

But for the fact the Mets and its owner were scammed by the late crooked Bernie Madoff, there would be no Bobby Bonilla Day.  Instead of "celebrating" Bonilla, perhaps Chronovo should reconsider their post given Bonilla's deferred compensation peers as a better role model for annuities. Madoff was a crook who destroyed lives and died a miserable death. 

One of the more significant and impactful parts of the July 1, 2022 New York Post article was the statement that Bonilla has never approached the Mets about receiving the funds all at once, instead opting to keep the yearly tradition going.  “I’ve never even thought about it,” Bonilla said.   This statement IS something to get in front of young people of color with structured settlements who are targeted by structured settlement factoring companies when they reach 18 and throughout their 20s. 

Think  "Just Say No. Like Bobby Bo"

Related Reading

Annuity.org Revives Tired "Bobby Bonilla Day" for the Ides of March. Why?

 

Which Structured Annuity Issuers Are Among A. M. Best 2022 List of Largest Insurers?

by John Darer CLU ChFC MSSC CeFT RSP CLTC

Insurance groups that include current and former structured settlement annuity issuers represent more than 43% of the largest life insurance groups in the United States.

• Prudential  (1)
• MetLife (2)
• New York Life(3)
• Massachusetts Mutual Life (4,  former structured settlement annuity issuer)
• AIG Life & Retirement  (6, soon to be Corebridge Financial)
• Lincoln Financial (8, acquired Liberty Life of Boston structured settlement block, reinsured by Protective Life, #26)
• John Hancock (10)
• Brighthouse Financial  (15, includes legacy Travelers Insurance Company/ legacy MetLife Insurance Company of CT structures)
• Pacific Life (16)
• Athene (19, includes former Aviva,  CGNU and CGU Life structured settlement business)
• Talcott Resolution  (21, formerly known as Hartford Life)
• Protective Life (26, reinsurer of Lincoln Life of Boston structured settlement business-formerly Liberty LIfe of Boston)
• Genworth (30, roll up and spin off of First Colony, American Mayflower, GE Capital Assurance Company, GE Capital Life  Assurance company of NY)

Source: A. M. Best 2022 List of Largest US Insurerance Groups, published July 2022.

While size matters, it is only one of the criteria one should use in selecting an insurance company to fund a structured settlement.

List of current structured settlement annuity issuers in the USA and their ratings.

 

 

 

 

If You See a Qualified Assignment and Release Like This, Seek a Second Opinion

by Structured Settlement Watchdog

A Qualified Assignment and Release which includes the following, raises more questions than answers. If you see one it probably deserves a second opinion.

QUALIFIED ASSIGNMENT AND RELEASE

Defined Terms

Assignor:___________________ Qualified Settlement Fund,  ( QSF may be adminstered by company related to settlement planner)

Assignee: Qualified Assignment Company related to the settlement planner.

Qualified Funding Asset:  Annuity

Issuer of Qualified Funding Asset :  Metropolitan Life Insurance Company

12. In exchange for "legal payment rights" pursuant to 5891 of the IRC, to the Periodic Payments specified in Paragraph 15. Claimant hereby releases and discharges the defendants and/or respondents with regard to the Periodic Payments, and agrees to only look to  (name of Assignment Company owned by settlement planner firm holding company)

_____________________________________________________________________

SIDE BAR (sponsored by "What's Your Vector Victor?")

Why is the Clamaint releasing and discharging "Defendants and/or Respondents" in the settlement planner's Qualified Assignment and Release document from a QSF?  Wouldn't the "Defendants and/or Respondents" have been released and discharged when the money was deposited in the QSF under the "resolve or satisfy" clause in  § 1.461-2(c)(2)?

Claimant is to Respondent as Defendant is to Plaintiff. See my September 18, 2014 post, What's the Difference between Plaintiff or Claimant, Defendant or Respondent?

________________________________________________________

13. In the event of notice of an application to any court for the transfer of the payment rights under this agreement, (name of Assignment Company owned by settlement planner firm holding company) reserves the right to  effectuate an immediate transfer of ownership of the "Qualified Funding Asset"

Metropoltan Life Will Not Issue a Structured Settlement Annuity to a Settlement Planning Firm's Assignment Company

This author has confirmed with Metropolitan Life Insurance Company, that Metropolitan Life Insurance Company WILL NOT issue a structured settlement annuity to a qualified assignment company other than its own. Furthermore, since MetLife spun off its retail division to form Brighthouse,  a transition which was finalized August 7, 2017, MetLife does not issue retail annuities.

Factored Structured Settlement Payments Bought as an Investment Are Not An Annuity

The acquistion of someone elses' structured settlement payment rights is not the purchase of a structured settlement annuity, in accordance with National Association of Insurance commissioner (NAIC) Statutory Issue Paper No. 160, or an annuity under the laws of most states. In 37 states, investors in other people's structured settlement payment rights do not have the same statutory protections.

What is a Qualified Funding Asset?

According to IRC 130(d)

"For purposes of this section, the term "qualified funding asset" means any annuity contract issued by a company licensed to do business as an insurance company under the laws of any State, or any obligation of the United States, if—

(1) such annuity contract or obligation is used by the assignee to fund periodic payments under any qualified assignment,

(2)the periods of the payments under the annuity contract or obligation are reasonably related to the periodic payments under the qualified assignment , and the amount of any such payment under the contract or obligation does not exceed the periodic payment to which it relates,

(3)such annuity contract or obligation is designated by the taxpayer (in such manner as the Secretary shall by regulations prescribe) as being taken into account under this section with respect to such qualified assignment, and

(4)such annuity contract or obligation is purchased by the taxpayer not more than 60 days before the date of the qualified assignment and not later than 60 days after the date of such assignment".

 

It is clear from the plain reading of IRC 130(d) that obligation refers to any obligation of the United States. So the puzzle is what is the settlement planner getting the payee into here? 

 

If you would like more information on the essentials of  structured settlement documentation, this video may be helpful.

 

 

Structured Settlement Annuity Issuers with A Ratings from Weiss Research

by John Darer CLU ChFC MSSC CeFT RSP CLTC

Three insurance companies that issue structured settlement annuities have earned A ratings from Weiss Research

• New York Life Insurance Company A-
• Pacific Life Insurance Company A-
• USAA Life Insurance Company A

"Weiss insurance ratings outperformed 3 to 1." United States Government Accountability Office (GAO)

 

Charles "Charly" Schell (1969-2022) RIP

by John Darer CLU ChFC MSSC CeFT RSP CLTC

Charly Schell, Chief Strategist at Armis Advisers,the CEO of Bison Advisors and one of the original co-Founders of Forge Consulting, passed away in a small plane crash in a remote section of the BIghorn National Forest in Wyoming on July 15, 2022.  The plane departed from Powell Municipal Airport, in Powell Wyoming and was en route to Johnson County Airport in Buffalo Wyoming airport when the accident occurred, according to reports. The crash also took the life of his wife Kelli Taylor Schell, General Manager of Cateechee in Hartwell Georgia. They are survived by their two adult children.

Schell was a former U.S. Army aviator who later began a successful career in settlement planning. In 2011 he was President of the Society of Settlement Planners and he later helped business owners mitigate taxes, to retire early and to leave a legacy.

I'll let Charly tell his story in his own words...

Rest in Peace. My deepest condolences to Charly & Kelli's family, friends, colleagues and former colleagues and those whose lives they touched and made a difference.

 

Pacific Life & Annuity Services Inc. Redomiciles from Colorado to Missouri

by John Darer CLU ChFC MSSC CeFT RSP CLTC

Pacific Life Structured Settlements

Pacific Life & Annuity Services, Inc. has announced that it has redomiciled from Colorado to Missouri effective July 1, 2022. Pacific Life & Annuity Services, Inc., is the qualified assignment company for all Pacific Life branded structured settlements and include underwriting companies Pacific Life Insurance Company in all states but New York and Pacific Life & Annuity Company for all Pacific Life funded structured settlements where there are touch points to New York.  [e.g. New York litigants, litigation in New York Courts]  

Read What is a Qualified Assignment?

 

 

Pacific Life A+ Superior Financial Strength Rating is Affirmed by A.M. Best

by John Darer CLU ChFC MSSC CeFT RSP CLTC

Pacific Life is a Leading Issuer of Structured Settlement Annuities

On June 22, 2022, rating agency A.M. Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa” (Superior) of Pacific Life Insurance Company and Pacific Life & Annuity Company (collectively referred to as Pacific Life Group). The companies are leading issuers of structured settlement annuities, the latter company being Pacific Life’s structured settlement annuity issuer in the state of New York. Both companies are headquartered in Newport Beach, CA.

Additionally, AM Best has affirmed the Long-Term ICR of “a” (Excellent) of the group’s intermediate holding company, Pacific LifeCorp (Wilmington, DE). AM Best also has affirmed the Long-Term Issue Credit Ratings (Long-Term IR) of Pacific LifeCorp. PacificLife Corp serves as the guarantor of Pacific Life and Annuity Services, Inc., the Missouri domiciled company that serves as the qualified assignee for periodic payment obligations under qualified assignments pursuant to IRC §130(c)and which purchases and owns Pacific Life structured settlement annuities as qualified funding assets pursuant to IRC §130(d)

The A.M. Best outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Pacific Life Group’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favorable business profile and very strong enterprise risk management (ERM). Pacific Life’s balance sheet is supported by a very strong level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and its history of positive earnings trends, which are supported by being one of the industry’s leading sales organizations in its key product lines. The favorable business profile assessment reflects its prominence as a leader in the affluent market segment.

Pacific Life offers competitively priced fixed structured settlement annuities, medically underwritten life contingent structured settlement annuities,  index linked structured settlement annuities (ILAPA) and has a variable structured settlement annuity in development. Pacific Life & Annuity Company also issues structured judgment annuities in New York cases.

Pacific Life has been named one of the 2022 World’s Most Ethical Companies^®

2022 marks the fifth consecutive year Pacific Life has been recognized by the Ethisphere Institute, a global leader in defining and advancing the standards of ethical business practices. Pacific Life was evaluated on five categories, including its ethics and compliance program; culture of ethics; environmental and societal impact; corporate governance; and leadership and reputation. The Ethisphere Institute, which honors companies demonstrating exceptional ethics-focused programs and practices. Pacific Life was one of 11 insurance and financial service industry honorees.

USAA Celebrates 100 Years in Business

by John Darer CLU ChFC MSSC CeFT RSP CLTC

We're pleased to have a business relationship with USAA Life Insurance Company . The San Antonio based USAA was founded June
20,1922 by a group of soldiers to take care of their own. Over the years the USAA customer base has explanded.

USAA Structured Settlement Annuity Issuer

Today the A++(Superior) A.M. Best rated insurer has become a highly respected issuer of structured settlement annuities for a wide spectrum of claimants, particularly competitive for use as a qualified funding asset to fund long duration cash flows as payment of damages in on personal physical injury, physical sickness and wrongful death in medical malpractice, aviation, trucking, maritime and other types of legal settlements.

USAA ranks 25th on Fortune’s 2022 list of the world’s most admired companies. The ranking is based on the magazine’s poll of about 3,700 corporate executives, corporate directors, and business analysts. 

USAA ranks 96th in the 2022 US Fortune 500 and 330th in the Global Fortune 500.

USAA is one of the Wards 50 Life & Health Insurers for 2021 (29 years).

Watch a short video about the history of USAA

Read more about

What is a Structured Settlement?

What is Settlement Planning?

Structured Settlements for Minors

Structured Settlements for Seniors

USAA Life Insurance Company does not write structured settlement annuities in taxable damage cases or where litigation is in the State of New York.

Last updated July 1, 2022

 

 

 

Gargan Pays Off Stolen $1M+ from NY Minor's Settlement | Seeks Compassionate Release from Prison

by Structured Settlement Watchdog

 

Former structured settlement broker turned felon, Joseph E. Gargan. has been seeking a favorable decision for Compassionate Release due to various health related issues since he began serving his sentence in January 2021.  Gargan has been housed at FMC Buttner for most of that time, the same place where Bernie Madoff and Ted Kaczynski, the Unabomber, were caged. Gargan seeks a 28 CFR 2255 hearing on the merits from Judge Rossie C.Alston of the United States District Court, Eastern District of Virginia Criminal Action 1:20-cr-110 (RCA). 

 

Gargan, the former CEO of The Pension Company, was required to pay restitution in the New York case first. Michael K. Eidman, the attorney for a New York minor's family submitted a letter to Judge Alston in support of Gargan's request which stated that Gargan had made full repayment of more than $1,032,750.00 that Gargan had embezzled from the minor's medical malpractice settlement and had been earmarked for the minor's Supplemental Needs Trust.  See January 10, 2022 victim lawyer letter to Judge in support of Gargan motion for compassionate release. Gargan still owes the Government millions, although Gargan disputes the amount and insists that the damages due the Government were miscalculated. He disputes the amount of restitution still due the Government.

 

On April 19, 2022, in a Second Supplemental Brief in support of his Motion to Vacate Under Section 2255, Gargan brought to the Court's attention, the April 7, 2022 5th Circuit decision in United States v Brian Alfaro (Case 20-51054), where the Court remanded and resentenced Mr. Alfaro due solely to the Court's erroneous assessment of the loss amount and resulted in a potential change in the Federal sentencing Guideline range. Gargan contends that the restitution calculated by the AUSA in the civil Division of the DOJ  is inaccurate and excessive. He contends that the evidence clearly proves this fact and requires a 2255 Hearing.

 

28 U.S. Code § 2255 - Federal custody; remedies on motion attacking sentence

 

(a)A prisoner in custody under sentence of a court established by Act of Congress claiming the right to be released upon the ground that the sentence was imposed in violation of the Constitution or laws of the United States, or that the court was without jurisdiction to impose such sentence, or that the sentence was in excess of the maximum authorized by law, or is otherwise subject to collateral attack, may move the court which imposed the sentence to vacate, set aside or correct the sentence.

(b) Unless the motion and the files and records of the case conclusively show that the prisoner is entitled to no relief, the court shall cause notice thereof to be served upon the United States attorney, grant a prompt hearing thereon, determine the issues and make findings of fact and conclusions of law with respect thereto. If the court finds that the judgment was rendered without jurisdiction, or that the sentence imposed was not authorized by law or otherwise open to collateral attack, or that there has been such a denial or infringement of the constitutional rights of the prisoner as to render the judgment vulnerable to collateral attack, the court shall vacate and set the judgment aside and shall discharge the prisoner or resentence him or grant a new trial or correct the sentence as may appear appropriate.

 

Gargan contends that the Government never should have used the replacement cost of annuities to calculate the loss amount since he alleges, that amount does not accurately reflect the true amount of the purloined funds from The Pension Company premium trust account. Due to the fact that structured settlement annuity rates can fluctuate daily and he contends there was no need for the Government to buy the replacement annuities when they did; at the lowest rate of return in the history of the structured settlement industry. He therefore contends that the restitution due  and payable to the US Government (i.e. the tax payers) should be the amount of the purloined funds, less the payments Gargan made into the US Government Reversionary Medical Trust. 

 

Gargan further contends that even if the Court determined that the loss amount should include the replacement annuities the Government inflated the annuity purchase price by over $750,000 by duplicating a guaranty on $700,000 in payments that had already been made by Gargan and unnecessarily included over $250,000 in structured settlement brokerage commissions. Gargan contends that if the Government properly priced the 46-year guarantee instead of a 50-year guarantee, the restitution would be reduced by $700,000. Gargan contends that the AUSA who facilitated the annuity purchase retired from the DOJ and was immediately hired by the largest structured settlement firm in the U.S, which he alleges received the benefit of billions in US Government funds over the last 40 years, which he alleges were received without government contract or proper DOJ oversight. 

 

Gargan detracts from his credibility, in my opinion, by going on to make salacious allegations about how DOJ business has been assigned. If the convicted admitted purloiner is to be believed, one can't help but wondering if Gargan has ever been assigned business based on his allegations of "favoritism, bribes and sexual favors" [with a garnish of "sour grapes" and a twist of lemon].

 

Let's not forget the commissions that he owed former Pension Company brokers Jim Brady, John Willcox and Mike Herald, at the time of his conviction and again, he still owes the Government (i.e. the taxpayers) millions, even if he succeeds in getting a reduction,