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

OK John Edwards..."The Presidency Not For Sale, Lincoln Bedroom Not For Rent"...How About Your Endorsement?

  Presidential candidate and former United States Senator John Edwards was quoted on August 23, 2007 "The American people deserve to know that their presidency is not for sale. The Lincoln Bedroom is not for rent". As one of the "American people" I say the American People deserve to know that in this regard, the direction the Edward's campaign is trying to forge, does not appear to "Bair" out against his own actions.

Something just doesn't appear to check out. Forge Consulting, LLC has aggressively used a purported testimonial from Presidential candidate John Edwards (see March 9, 2007 post and John Edwards category to right of this page) on its web site and in written insurance solicitations (see link below). I have not seen another regulated financial product or company that has been marketed in this manner by HIlary Clinton, Barack Obama, Joe Biden, or any other Presidential candidate. Presidential candidate John Edwards was LONG GONE from his practice as a trial lawyer by the time Forge Consulting was founded, which brings Forge Consulting or John Edwards, or both into question. Federal and State laws govern the use of testimonials by insurance agents and financial advisors, as do attorney standards of professional conduct

DESPITE BEING NOTICED IN MARCH 2007, JOHN EDWARDS HAS BEEN SILENT ON THE QUESTIONS ABOUT FORGE CONSULTING... WHICH, UPON INFORMATION AND BELIEF HAS HELPED RAISE OVER $100K FOR THE SENATOR.   YOU GET MY DRIFT? TO WHAT EXTENT ARE FORGE CONSULTING's CAMPAIGN CONTIBUTIONS, AND FUNDRAISING, INFLUENCING, JOHN EDWARDS' ABILITY TO TELL AMERICAN VOTERS THE TRUTH? WHAT IS GOING ON HERE? DID JOHN EDWARDS MAKE A TESTIMONIAL ABOUT A COMPANY WITHOUT EVER HAVING USED THE COMPANY HE WAS GIVING THE TESTIMONIAL ABOUT?

IF HE HAS, THEN HIS CREDIBILTY IS SHOT WITH RESPECT TO "WHAT IS NOT FOR SALE"!

One thing that seems obvious is that some forces came to "Bair" on Forge Consulting, LLC and as of July 13, 2007 the testimonial page on the company website that contained John Edwards' "testimonial" has been "under construction". In my opinion the actions so far suggest that he did make the testimonial (without having used Forge). However, revelations about Forge concerning false advertising, and the DOJ declarations made by Forge Consulting principals Bair,Schell and Phillips are an embarassment to Edwards since his silence suggests that he really gave them his "highest recommendation".

Here's John Edwards' conundrum. If he disavows "the testimonial" he pisses off a fundraising source who could easily turn the tables on him. If he admits to "the testimonial" he is tied into the egregious behavior and demonstrates that he can be bought, thus making him vulnerable to attack from other candidates and could ultimately strike a fatal blow to his candidacy.

SUPPORTING DOCUMENTATION and LINKS

John T. Bair, President of Forge Consulting, LLC solicitation to New York State Trial Lawyers

Download forge_feb_21_2007_letterny_statejohn_bair.pdf

Forge Consulting, LLC website testimonial page prior to July 13, 2007

Download forge_consulting_testimonial_web_page.pdf

Forge Consulting, LLC website testimonial page since July 13, 2007

Download forge_testimonialsunder_construction_7132007.pdf

More on the John Edwards/Forge Consulting story click here

Google "Forging" of Two "Testimonials" Attributes Statement to Wrong Guy...Can You Be Hurt By The Implications?

If you put John Edwards and Forge Consulting into your Google search engine box you will find a search result that falsely implies that now Presidential candidate John Edwards said "working with FORGE Consulting is beneficial to everyone involved". If he did wouldn't it be something that FORGE Consulting would want to state directly?

It is interesting how the Google search algorithm "forges" a purported statement which FORGE Consulting attributes to David Bikofsky (one time President of the Massachusetts Academy of Trial Attorneys) to NOW PRESIDENTIAL CANDIDATE JOHN EDWARDS! The only reason Google is able to do this is the way FORGE Consulting has constructed its testimonial web page. One wonders what prior knowledge FORGE Consulting had in its placement of "testimonials" on its web page.

Either way the search result is misleading in that it falsely implies that John Edwards actually said that "working with FORGE Consulting is beneficial to all parties involved". If a statement is false and misleading and, as a result, consumer relies on that false and misleading statement in either his/her initial interest decision OR the actual decision to buy, to the potential detriment of the consumer and competitors of the consultant/seller, how fair is that?

This is is of course separate and apart from the John Edwards Forge Consulting question which this blog has been discussing for 105 days plus, since March.

This post should be a warning to those giving "testimonials" that you should know up front how you will be quoted, where you will be quoted and in what context you will be quoted.  It may even make sense to put a time limit on the use of your name. Federal regulations in certain industries prohibit the use of testimonials. Furthermore, some state insurance statutes require that the use of testimonial represent the current opinion of the person whose testimonial is used. Why get caught up in a mess like this?

Caveat Testimonium!

Things You Miss When You Cut Social Studies

Gregg Pennington was obviously NOT paying attention in social studies.  The writing shill for Structured Settlement Alliance authoritatively states "Once a structured settlement agreement is enacted, the terms are fixed."

Here's the lesson  on "enacting" bills that Gregg Pennington missed, courtesy of Schoolhouse Rock. And, in case you missed the video too, please click here.

Structured Settlements are NOT enacted. They are reached as a result of compromise between two or more parties to a claim or lawsuit. If it took an "act of Congress" or state government to create every structured settlement who knows where we'd all be.

JG Wentworth's alter ego Structured Settlement Alliance sure knows how to pick "the crumb of the crop" for its affilate marketers.

Does John Edwards' Albatross weigh a ton?

Several years ago during a trip through the Galapagos Islands my companions and I had a memorable stop on the island of Espanola to see the unique mating ritual of the waved albatross, a rare and majestic sea bird with an over 9 foot wing span. The bird is renowned for its soaring capabilities and lumbering landings.The word "albatross" is also a metaphor for an encumbrance.  This post focuses on what sort of albatross Forge Consulting represents to John Edwards 2008 Presidential candidacy.

Presidential candidate John Edwards is closing in on a ton. John Edwards is closing in on 100 days of avoiding the Forge Consulting questions. Is he afraid to answer these questions? Will the Forge Consulting issue be the an albatross for John Edwards if he gets the Democratic nomination? We shall see.

To recap for all you registered voters.

1. Forge Consulting, LLC a structured settlement firm headquartered in Buffalo, NY, has aggressively used testimonial words purported to be those of John Edwards in its solicitation and sale of regulated insurance and investment products. You can read about Forge Consulting by going to its website at www.forgeconsulting.com or by reading the extensive coverage of the company, including, in my opinion, some significant and material reasons to be concerned about Edwards' "standards" if he is truly giving this company "his highest recommendation", in the category listing to the right of this post------->. Read and judge for yourself.
2. The words purported to be that of John Edwards are used in such a way on the Forge Consulting web site and in the body of a letter Download forge_feb_21_2007_letterny_statejohn_bair.pdf , soliciting structured settlement annuity and insurance products, that was sent by Forge President John Bair to trial lawyers, to imply that John Edwards uses Forge Consulting for same services that Forge is soliciting the trial lawyers and their plaintiff clients for (i.e. structured settlements).
3. According to publicly available information John Edwards left his law practice in 1999. Forge Consulting began operations several years later. This author believes that due to the time differential it unlikely or impossible that John Edwards ever used or currently uses Forge Consulting for structured settlements, but seeks clarification.
4. In March 2007 John Edwards represented to Katie Couric that as a result of his candidacy for President he was OPEN to scrutiny. However, his actions run contrary to that statement.
5. This author wrote to John Edwards on March 27, 2007 Download letter_to_john_edwards_032720007_sent_via_johnedwards_2008_website.pdf and has followed up with several members of John Edwards 2008 campaign staff including Kathleen McGlynn and John Pappajohn. Copies of the letter to Edwards appear in the John Edwards category to the right of this post.
6. Are the words that Forge Consulting attributes to John Edwards true?
7. If the words that Forge Consulting attributes to John Edwards are true and John Edwards did indeed give Forge Consulting "his highest recommendation" was the "testimonial" for structured settlements as framed by Forge Consulting?
8. Does John Edwards permit Forge Consulting to use his name and words (if they were his) in ongoing solicitations for regulated insurance products or investment services?
9. Forge Consulting represents that it is licensed in all 50 states
10. Certain state insurance laws are specific on how testimonials may be used. Some require that any testimonial represent the current opinion of the person giving the testimonial
11. Federal securities laws contain strict guidelines on the use of testimonials. There is a strict prohibition on the use of testimonials by financial advisers.
12. According to publicly available information several Forge Consulting principals and their wives have given money to John Edwards' campaigns in 2004 and the current campaign. The firm has used its Buffalo Headquarters for John Edwards 2008 fundraisers in 2007 which begs the obvious question concerning the reasons for avoiding or delaying a response.

Once again I call on the "I am open to scrutiny" John Edwards to come forward and answer these questions.

As an aside to readers, I contributed to Edwards' 2004 campaign as did a number of people in the structured settlement industry. Forge Consulting appears to be the only firm of any kind , that I have been able to find, that uses a current Presidential candidate's name in solicitation for regulated financial products.

John Edwards and "The Job of President of The United States"

"The job of the president of the United States is not to legislate but to lead," John Edwards said last night said - a point he repeated several times. 

If "the war on terror is a bumper sticker"John Edwards is a leader then WHY is John Edwards avoiding "tough questions" about (1) his connection to FORGE Consulting, LLC other than the campaign contributions and $2,000-a-head drinks and hors d'oeuvres; (2) the basis of singling them out for his "highest recommendation" when he was long gone from his personal injury practice BEFORE FORGE Consulting. LLC was founded, and (3) whether or not Presidential candidate John Edwards has given permission to FORGE Consulting to use his name to sell regulated insurance products?

To recap, according to FORGE Consulting advertising and letters of solicitation in connection with regulated insurance products and services John Edwards has given FORGE his "highest recommendation"

As a result John Edwards' "standard" IS associated with :

1. A company that falsely advertised that it is the only plaintiff exclusive company in the country.
2. A company that falsely advertised that it is the only plaintiff exclusive structured settlement firm for the New York State Trial Lawyers Association
3. A company whose advertisement to the Ohio Trial Lawyers Association directory included a principal who was not licensed and currently is not licensed according to Ohio Insurance Department records.Download charles_schell_ohio_agent_look_up.pdf Download agentlesults_schell_ohio.pdf
4. A company whose web and print advertising has consistently missed fundamental facts about the business that it is in.
5. A company whose principals signed an affidavit under the Federal perjury statute in 2005 (and whose President also signed in 2006) to get business from the United States government while simultaneously making statements to other potential clients that could not be true if the affidavit were true ; and vice versa.
6. A company with a Freudian hedge that includes putting "equivocated guaranteed and approximate" in the same sentence when describing "the sole benefit" of  a dubious proposition about an interest rate it claims it can get for some of John Edwards' biggest contributors.
7. A company which advertised (until exposed by this blog in Sept-Oct 2006) that it buys structured annuities (from injury victims)... in addition to setting them up!

I have made an effort to see that John Edwards and his campaign have been made aware of the above. SS4R's "John Edwards-Forge Consulting-What's the Truth?" meter shows that John Edwards has had 70 days to dispute FORGE Consulting's advertisement and solicitation and yet HAS NOT done so.

Does this nation need a President with these "standards"? Draw your own conclusions.

"I say all of those judgments and questions are entirely legitimate. I mean, you offer yourself up for service to the country as the President of the United States, you deserve to be evaluated. I am perfectly open to that evaluation". John Edwards, from an interview with Katie Couric March 2006.

Is John Edwards-Forge Consulting Relationship Par For His Course?

In "The Continuing (Yet Incomplete) Education of John Edwards (Ongoing)" Tom Maguire's "Just One Minute Blog" asks, "Jiminy - Edwards voted for war in 2002 on the basis of faulty intelligence, took a job in 2005 on the basis of faulty intelligence - when does he start with the tough follow-up questioning?"

Perhaps the purported "testimonial" in which he purportedly gave Forge Consulting, LLC his "highest recommendation" may be spun by Edwards as another example of faulty intelligence.**

Presidential Candidate John Edwards is now "batting over a half ton" avoiding (for 2 months) the question of whether or not he does now or ever did engage Forge Consulting, LLC, (a significant Edwards campaign contributor,fundraiser and "pigs in blankets server") to place structured settlement business. Once again, for the benefit of new readers, Forge Consulting, LLC was established long after John Edwards became a Senator.

** for reference please see our library of posts on John Edwards,  Forge Consulting and Forge Consulting Issues and Opinions. See categories to the right.

To be continued...

If You Say So John Edwards, Let's See You Step Up And Lead

"Ultimately, it's up to the people to decide our nation's course. And at crucial moments like this, it's our duty to step up and lead."

Thank you,

-- John Edwards
   May 10, 2007

I agree with what John Edwards says in the above statement.

But on the otherhand avoiding tough questions is NOT a sign of leadership. So why is John Edwards NOT demonstrating the qualities of a leader by avoiding the tough question about his purported endorsement of Forge Consulting? Does John Edwards have something to hide?

The question was asked over 45 days ago by this author in an email to John Edwards and in several conversations with members of his campaign staff and open letters to his camapaign chairman David Bonior and his CFO Frederick Baron.

The facts:

1. According to evidence obtained and published by this author, Forge Consulting, LLC is using a testimonial attributed to Presidential candidate John Edwards in marketing letters to people who represent injury victims and on its corporate website.

2. The manner in which the purported testimonial is being used implies that John Edwards uses Forge Consulting, LLC for structured settlements.

3. According to published sources, John Edwards ceased practicing trial law when he became a Senator, several years before Forge Consulting was founded.

4. The President of Forge Consulting, LLC, John T. Bair of Buffalo New York is a John Edwards fund raiser and, according to published sources, has held events at Forge Consulting, LLC corporate headquarters.

5. The amount of money given by Forge Consulting, LLC principals, and their wives, to John Edwards' campaigns and to Trial Lawyer Associations backing John Edwards is public information.

6. The amount of money given to John Edwards' campaigns by members of the structured settlement industry is also public information. These individuals neither sought nor received endorsements.

7. As a result of the continued use of John Edwards' purported testimonial by Forge Consulting, LLC, the John Edwards name, John Edwards' purported opinion on "professionalism" and John Edwards' "highest recommendation" is associated with:

• The deliberate execution in August 2006 of a declaration to the United States Department of Justice by John T. Bair , under the federal perjury statute, attesting to 3 years of substantial defense structured settlement services ONLY WEEKS AFTER handing out a brochure to a national meeting of trial lawyers claiming that the firm was "plaintiff exclusive". This  act was the second year running that John T. Bair executed the declaration suimultanously marketing "plaintiff exclusive"
• The deliberate false and misleading claims by Howard Saperston, III, principal of Forge Consulting, LLC that Forge Consulting is the only plaintiff exclusive company in the country. Note only is that claim false, but Saperston and Forge could not make that statement with knowledge of Bair's declaration.
• The deliberate execution, in 2005, of a declaration to the United States Department of Justice by Forge Consulting, LLC principals Charles Schell and H.H. Spooner Phillips, IV, under the federal perjury statute,  attesting to 3 years of substantial defense structured settlement services while the firm advertisd its plaintiff exclusivity". This  act was the second year running that John T. Bair executed the declaration suimultanously marketing "plaintiff exclusive"
• The placement of an advertisement in the Ohio Trial Lawyers Directory for the solicitation of insurance products (annuities) featuring an individual, Charles Schell who according to online records of the Ohio Department of Insurance was unlicensed.
• The continued advertisement and seduction of trial attorneys using a questionnable interest rate for structured attorney fees using the "professional" combination of descriptive words "equivocated, "guaranteed" and "approximate"  to "justify" the questionnable 15% in the same sentence.

JOHN EDWARDS' UNANSWERED QUESTIONS:

1. Did Presidential candidate John Edwards endorse Forge Consulting, LLC for structured settlements? If so, when?
2. Did Presidential candidate John Edwards ever use Forge Consulting, LLC for structured settlements? If so, when?
3. Does Presidential candidate John Edwards currently use Forge Consulting, LLC for structured settlements?
4. Does Presidential candidate John Edwards approve the use of his name by Forge Consulting, LLC in solicitations for regulated financial products such as annuities, or any products?
5. Does John Edwards currently endorse any other products financial or otherwise?

Structured Settlements 4Real has created a John Edwards-Forge Consulting...What's The Truth? meter posted on the lower left of the website. This meter will stay posted until John Edwards answers the questions.

Skeletons Rattling in "Bonior's Boneyard"

David Bonior, John Edwards' "crypt keeper" and 2008 campaign chairman sent me an email letter yesterday which opened as follows:

"Dear John,

There is a trail of rot making its way through our government—and it leads straight to Karl Rove."

I respond:

"Dear David (Bonior)

YOU have been made aware of a trail of rot stinking up your candidate's name and it leads straight to 737 Main Street Buffalo New York.

David Bonior states:

"Enough is enough. Impartial justice must be protected. Integrity in government must be defended. Karl Rove must be fired."

I say:

"Enough is enough...integrity of the laws concerning the advertising and solicitation of financial vehicles to victims of personal injury and wrongful death and the legal profession, must be protected. Forge Consulting must be fired"

Right now Presidential candidate John Edwards' name is associated with:

1. Blatant false statement that Forge Consulting is the only plaintiff exclusive structured settlement firm in the country.
2. Blatant false statements that Forge Consulting is the only plaintiff exclusive structured settlement firm in various states, which have trial lawyer associations to which Forge Consulting has apparently contributed lots of money (in addition to contributions by its principals and their wives to the Edwards campaign).
3. Principals of a firm that has advertised that it is a plaintiff exclusive structured settlement firm while knowing that its President signed an affidavit declaring to the United States Department of Justice, subject to the Federal perjury statute, that he has provided substantial structured settlement services to or on behalf of DEFENDANTS, or their counsel, in each of the past 3 years. Nobody is putting down plaintiff exclusivity as a business choice. However, we are saying is that John Edwards name is associated with an individual and a firm that are collectively making two mutually exclusive statements that have Federal and State legal implications, and it may hurt John Edwards.
4. A firm whose recent solicitation in Ohio , one of the key John Edwards battleground states, includes the picture of a principal who does not appear to be licensed to solicit insurance in the State of Ohio
5. A firm whose President, in written communication, solicits members of the New York State Trial Lawyers Association (NYSTLA) using the John Edwards name and in same written communication, using John Edwards' name, mischaracterizes what the New York  CPLR 5003-a statute says.
6. A firm that solicited investment planning services of John Edwards' leading backers (trial lawyers) without identifying the affiliated broker dealer or registered investment adviser on distributed sales literature to prospects in more than one state.
7. A firm that baits John Edwards' leading backers(trial attorneys) for structured attorney fee transaction with a highly questionable interest rate using the words "equivocated", "guaranteed" and "approximate" to characterize this highly questionable interest rate in the same sentence.
8. A firm and its President whose actions, in using John Edwards name, have regrettably and directly caused this focused and continued examination of Presidential candidate John Edwards.

Mr. Bonior, I ask you what does this say about John Edwards' standards IF, in light of substantial evidence, John Edwards "gives them his highest recommendation"?

A Public Letter to Senator John Edwards

A public letter to Senator and Presidential Candidate John Edwards,

On Tuesday April 10, 2007 I received the 10th contact from your campaign seeking a contribution from me. I contributed to your 2003 primary campaign.

Please answer the question about whether you personally have engaged Forge Consulting, LLC for a structured settlement while engaged in the practice of law. The manner in which Forge Consulting, LLC is using your purported testimonial implies that you have. It raises questions since Forge Consulting was formed after you became a Senator. As recently as February 21, 2007, Forge Consulting, LLC is using your name (and the implication that you have done and are currently doing structured settlement business with them) to sell insurance products to lawyers and their clients.

Download forge_feb_21_2007_letterny_statejohn_bair.pdf  and see Forge Consulting website.

I know of no other Presidential candidate who is providing such vendor endorsements. Why should I or any member of the structured settlement industry (there are over 600 highly educated registered voters...and friends) want to contribute money to your campaign or even trust you, if you can't take the time to answer this question?

Sincerely,   John D. Darer

Further reading

What's The Truth About John Edwards' Endorsement of Forge Consulting?  March 31, 2007

Doubts Continue that Forge Consulting is Plaintiff Exclusive As Advertised March 9, 2007

Copy of my March 27, 2007 letter addressed to John Edwards, posted to John Edwards,via the John Edwards 2008 campaign website

Download letter_to_john_edwards_032720007_sent_via_johnedwards_2008_website.pdf

Who Is Behind Robert Wood's Opinion on Structured Annuity Commutations? It's Obvious

Robert Wood, a prominent San Francisco based tax attorney gave a 2006 Christmas gift, to factoring companies by opining that a structured settlement factoring transaction under IRC 5891, performed by an entity other than a 3rd party factoring company would be perilous to the IRC Section 130(c) exclusion afforded the qualified assignment company owning the structured settlement annuity as a qualified funding asset.

On the Factoring Channel yesterday, Matt Bracy, General Counsel of Settlement Capital, interprets a rehashed version of the article by Wood, published in the April 2007 Tax Advisor, to state that "his (Wood's) conclusion is that there is a significant and perilous difference between factoring (by a 3^rd party) and acceleration or commutation.

This author believes that Bracy's argument matches the will and financial might of factoring companies, fueled by hedge funds with too much money on their hands, who are seduced by the double digit returns they can make investing in structured settlement payment rights, which are primarily AA or AAA rated assets. The double digit returns are what the settlement purchaser earns on the back of the structured settlement annuitant.

While it wasn't too difficult for any factoring company to work around the commutation discount rate offered by companies such as Allstate, the 11% discount rate (what I call a "pick and roll rate") offered by Allstate meant an erosion of profitability. This is because to compete, the factoring companies had to discount at a rate less than Allstate, Berkshire Hathaway or others were willing to commute for. For them, heaven forbid other annuity issuers followed the same strategy! With Allstate and co. out of the way, the "hyena and vultures" in the factoring crowd can circle "the carcass" and rip away even more hunks of flesh using higher discount rates and more profitability. Exactly how pushing this to the precipice benefits consumers , as Wood, Bracy and Pat Hindert (and their apparent backers) seem to be doing in their writing, is very difficult to see. For the factoring companies it's an utterly self serving fantasy.  As Bracy states to Mark Wahlstrom in his video podcast interview on The Factoring Channel,the simplest thing is to "not do it" (commutations).

The same "hyena and vultures" want to be part of the structured settlement industry. Some even have the delusions that they are already in and, have falsely advertised that they are structured settlement brokers and give structured settlement quotes. However, there is a clear cultural demarcation line between the structured settlement industry and the factoring or settlement purchasing industry despite the latter's best efforts to infiltrate.

Congressmen and congresswomen, senators, judges,state regulators and the IRS,  BEWARE, be very aware of what the "carrion crowd" want to do to your constituents and wards under the banner of "life, liberty and the pursuit of happiness". Don't fall for it!   

They clearly want to charge higher discount rates and, as previously posted, there is an effort afoot to remove the requirement to have independent financial advice PRIOR to the Court approval of any structured settlement factoring transaction. I also understand that in North Carolina there is an initiative to RAISE the cap on the discount rates that factoring companies may charge in structured settlement factoring transactions. Wouldn't it be hypocritical to complain about the quality body armament of troops in Iraq while at the same time allowing a removal of armor (protection) for consumers in your constituencies?

And it probably would be prudent for insurance companies, like Allstate, to seek a Private Letter Ruling on this issue.