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

SuttonPark Nightmare | Poor Credit Ratings Explained by Morningstar DBRS

by Structured Settlement Watchdog

The "Dr. Sleuth" Invocation

The week before Thanksgivin' (2024), and all through da house, nobody was stirrin, not even a mouse.

People wanted aid, so their bills could get paid

A lady feared losing her house, when it seemed that nobody  at SuttonPark was "in da house" 

SuttonPark customers they called and called, but their payments were stalled and stalled

The recorded information was wack and unreliable. Nobody called back, it was undeniable.  

All those late charges built up, the whole situation was "fupped duck".

The March 2025 Morningstar Report on SuttonPark Structured Settlements 

"There was a steep drop in collections in November for all transactions, primarily attributed to the migration from the former lockbox to the replacement lockbox. This is expected to be a one-off event and collections should stabilize on future payment dates.- The generally high credit quality of annuity providers and their improved capitalization positions and risk-management frameworks, which have been enhanced since the global financial crisis of 2008-09"

Source: SUTTONPARK 2021-A: DBRS Keeps BB Rating of D Notes Under Review Troubled Company Reporter March 9, 2025  Section: Vol. 29; ISSN: 1520-9474

Sounds very santitized, but in reality it was a huge mess and customers were kept in the dark. What little information there was, it was often not credible. For example when a SuttonPark recording said payments would go out in 3 days, people were complaining that this was not accurate. in some cases payments were a month late.

The SuttonPark Story Should Make a Business School Case Study

SuttonPark is the worst handled disaster in structured settlement factoring history, in my opinion. MBA students should study the business of SuttonPark, the decision making and how it all went wrong.  What could SuttonPark have done better? Plenty. What kind of a reputable business whose parent is described as "a shell game at best and a Ponzi scheme at worst"?  What kind of reputable business puts their customers in the dark and in such a precarious position that they cannot pay their bills on time, leading to accumulated late charges on mortgages, rents and other bills?  I fielded more than 24 hours worth of calls about SuttonPark and published victim impact stories so that the harm done to these people could be known. 

Some SuttonPark victims were injury victims who made partial sale of structured settlement payments to raise money, while some of the others were investors in structured settlement receivables who believed they were buying annuities due to misleading advertisng and marketing. The term "secondary market annuity" was commonly used to pitch the investment instead of the receivables that they are. 

 

SuttonPark Under Morningstar DBRS Lens Given Review With Negative Implications - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews July 24, 2024

SuttonPark Servicing Department to Close | What Court-Ordered Assignees MUST DO NOW B4 4/15

by Structured Settlement Watchdog

SuttonPark Capital has sent a letter to court-ordered assignees putting them on notice that its is in the process of closing its Servicing Department

The following is the text of the letter from Steven J. Pasko to court-ordered assignees  (a link to a copy follows):

 

"Regrettably, this letter is to serve notice that SuttonPark Structured Settlement LLC is in the process of closing its Servicing Department. Currently, the exact date of the department closure is not known. The secured lockboxes in Philadelphia, PA will no longer receive checks effective April 15th. This could affect your asset(s) with delays.  

 

As the court-ordered assignee, you have the right and/or responsibility to secure your asset(s).  It is recommended that you send a change of address to the annuity issuer as soon as possible. Remember to update both the check mailing and correspondence addresses of your assigned payments.

 

The Redirection Team are on hand to lend some assistance in facilitating these address changes, however, please keep in mind this department is still understaffed, and has daily responsibilities.

 

If you have any questions, please feel free to reach out via email: [email protected] 

 

Sincerely,

Steven J. Pasko"    Download SuttonPark Structured Settlements LLC servicing termination notice 2-21-2024

 

Note: Steven J. Pasko is not the Steve Pasko that resigned in May 2024, along with Josh Wander. See Steve J. Pasko – SuttonPark Capital

 

What does this mean if you are a structured settlement payee, affected by the SuttonPark Nightmare and still experiencing delays?

If you have not received notification that payments are being serviced by another entity other than SuttonPark (e.g. DRB Capital LLC, Vervent Servicing), contact the court-ordered assignee named on your structured settlement transfer documents. Make sure that they are aware of the April 15, 2025 deadline and keep following up until you get written confirmation of the change of servicer. Don't delay!

SuttonPark Nightmare | AL Victim Incurring $200+ Monthly Late Fees Due to SuttonPark Nightmare

by Structured Settlement Watchdog

Chatty Cathy is a 55 year old widow from Alabama who is scheduled to receive $4,689 monthly increasing at 2% through 2028, from a Wilcac Life Insurance Company structured settlement (formerly Continental Assurance Company) and is mired in the SuttonPark Nightmare.    

Alabama SuttonPark Victim is not Reckless Spender, Lives Within Means, but Faces Ongoing Challenges from SuttonPark Nightmare

Cathy is not a reckless spender. Cathy is able to live within her means and make timely payments for all of her obligations when the SuttonPark serviced structured settlement payments were on time. The SuttonPark Nightmare has resulted in late payments starting in June 2024 and then from November 2024 to the current time.

Many SuttonPark Victims Incur Late Fees Due to SuttonPark Nightmare and Needlessly Live in Fear

The ongoing delays mean that payments are arriving one month late, resulting in Cathy incurs late fees every month and it affects her credit. She lives in fear that the power will be shut off or lose where she lives. It really sucks that Cathy has to "feel that she's in constant jeopardy" when this was not the case when the payment arrived on schedule.

Cathy went to Arizona in November 2024 to see family to spend time with a grandchild who was celbrating a 2nd birthday. Because the scheduled payment did not arrive timely from SuttonPark (it was very very late), Cathy was short on funds to return home to Alabama so she had to stay in Arizona.

Factoring Company of Little Help, Offered to Buy More Payments at Pennies on the Dollar

Cathy tries reaching out to Stane Begovic, a funding executive at West Palm Beach based Novation Settlement Solutions that she worked with before, but Begovic and his colleagues at Novation don't seem to be able to do much except offer to buy more of her structured settlement payments for pennies on the dollar. Cathy does not want to do that.

 

While much of the focus is on Leadenhall Partners and ING Capital, plaintiffs in lawsuits against SuttonPark entities, 777 Partners, Josh Wander and Steve Pasko, who is showing any concern for the little people? These people are not just entries on a balance sheet. Nobody is paying for the SuttonPark induced late charges incurred by the little people.

 

SuttonPark Victim's Already Month Late Check from SuttonPark BOUNCED, Replacement Takes 5 Weeks!

by Structured Settlement Watchdog

Lloyd George (Alias) is a disabled American living in Nevada and an investor in structured settlement receivables. Mr. George thought he was buying a structured settlement. He actually bought a receivable, not a structured settlement or an annuity. 

In or about 2012 Mr. George purchased structured settlement receivables via SHP Financial from Plymouth Massachusetts.  The investment was in a structured settlement receivable from a structured settlement arising out of the settlement with the Measuring Life of a certain individual named Nicholas Cascio ("Cascio structured settelment receivable"). Mr. George says that SHP told him that the structured settlement payment were guaranteed. Now Mr. George is yet another person who bought an unregulated investment from a regulated financial adviser who has been experiencing the humanitarian crisis evolved from the SuttonPark Nightmare Payment Servicing delays.

The Sad Tale of the SuttonPark Tape (in reverse order)

What a "Poop Show"

1/2025  SuttonPark snafu due to "transposed numbers"

12/23/2024  Replacement payment for bounced check received 5 weeks later without reimbursement of $40 charge from bounced check

11/18/2024  SuttonPark check bounces, Mr. George incurs $40 fee.

10/24/ 2024  

10/3/2024

8/29/2024

SHP Marketing Practices Concerning Structured Settlement Receivables Were Questioned in 2014

In 2014 I questioned the SHP Financial marketing of structured settlement receivables to investors in a series of posts that highlighted how SHP Financial used the company logos of insurance companies such as American General and Allstate. SHP Financial did not originate the receivables and was acting as an outside marketing rep for receivables originated by Woodbridge Investments.

SHP Financial Using Life Insurer Marks to Sell Structured Settlement Payment Rights as Annuities - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews April 25, 2014

SHP Financial (shpfinancial) on Twitter  a contemporaneous screenshot capture of SHP Financial Twitter Feed showing how SHP used the logos of Allstate and American General to attempt to drive sale of investments that were not believed to be sanctioned by either of the insurance companies.

SHP Financial (shpfinancial) on Twitter 4-15-2014 screen with SHP using Prudential logo to pitch structured settlement receivables as "Matt says think of this #structuredsettlement as 15 year bank CD".  Not just like a CD, but as a CD.  It was grossly inaccurate.

Twitter / shpfinancial: "You're in good hands..." for ...  4-24-2014 screenshot where on 4-22-2014 SHP Financial used Allstate's trademarked tag line to insinuate Allstate's sponsorship of the structured settlement receivable they were pitching to investors.

Yelp Review March 3, 2014 from Bianca  "I have used this company to buy structured settlements (annuities). They have some of the best rates going. You can get a weekly email with current offers. They will meet you at your home or their office and answer all of your questions. They have a good staff, it's not just a one or two man operation. You can contact them anytime with your questions and will get timely advice".

It should be noted that Mr. George invested in the receivable via SHP in 2012.

Email from David Teittinen Director Sales and Operations at SHP Financial - Alternative Investments dated January 13, 2025 

"Hi Lloyd,

I do not know John Darer but I believe he has a website about structured settlements. I have reached out to Sutton Park (sic, it's SuttonPark) specifically on your situation again today  and am hoping to hear back soon. I know it continues to be extremely frustrating for you, as it is for many others. I work on this daily in the best interests of all of our affected clients and while progress is slow we are making some. Will continue to work on your behalf and will keep you up to date"

Nickle and Dime Fall Out for SuttonPark Victims

Keep track of all late fees that you have incurred due to late or missing payments from SuttonPark.

Examples

• Late payment penalties for mortgages or bankloans
• Late payments penalties from credit card companies

Make sure to include these if filing complaints with

• Consumer Financial Protection Bureau
• State Attorney General's Office
• Elder or Disabled Abuse Support Networks
• Disabled Support Networks
• Diary all attempts to contact, including dates and times.

 

 

 

 

 

SuttonPark Nightmare Continues. For Payees It's "New Year's Grieve"

by Structured Settlement Watchdog

It has been 2 weeks since the SuttonPark Voice Greeting was changed for the first time in almost 3 weeks on December 16, 2024. The recording stated that payments due end of November through December 1 were being released by direct deposit (only for those on direct deposit) and to allow for up to 72 hours for the payments to post at your bank. 

I recently spoke to a 75 year old Florida investor on direct deposit who had not received a payment for two months from SuttonPark. She depends on those payments. No meaningful discussion about payment servicing and what it is, why it is necessary, potential risks etc. Payment servicing needs to be thoroughly explained up front for both sellers and investors. Is there a back up servicer? This explanation should be part of the selling process.  

The longer this goes on the worse it's going to be for those companies without an efficient servicing arm. Why would any investment adviser acting in good faith, want to put their client through this nonsense?

How Many SuttonPark Servicing Victims Were Sold Investments as "Annuities" by Financial Planners?

by Structured Settlement Watchdog

The SuttonPark Payment Servicing nightmare is a full blown humanitarian crisis bleeding into the karma of the secondary market, leaving many with unreliable payments that are supposed to be reliable

Over the years the Structured Settlement Watchdog has posted warnings that acquired  structured settlement payment rights (structured settlement receivables) are not annuities and do not have the same protections as annuities in the event of insolvency.  There is a good chance that your investment is subject to payment servicing and if it that payment servicing is with Boca Raton based SuttonPark, a subsidiary of Miami based 777Partners, you may be experiencing payment delays that I have been posting about on this blog in the last 6-7 months with a dramatic increase since mid-November 2024. The Structured Settlement Watchdog first raised questions about what would happen in the event of bankruptcy of a structured settlement payment servicing company 15 years ago in 2009.

SuttonPark Payment Servicing Nightmare | Why is the Industry Still Dealing With 15 Year OId Questions? - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews

I am now researching the demographics of investors who invested in the structured settlement receivables that were sold to the investors as annuities (e.g. secondary market annuities, inforce annuties) in the approach by financial planners (including settlement planners) that have encountered the SuttonPark Nightmare Payment Servicing Delays. I want to know your stories.

Investors could be retirees, business owners through their pension plans sold by financial advisers, as well as former plaintiffs who were recommended such investments by their settlement advisers and attorneys who may have been recommended the investments on their behalf in support of petitions on behalf of minors to State Court judges.

Urgent Need to Raise Awareness About Payment Servicing of Structured Settlement and to Enhance Disclosures at the time of Sale

This research is crucial to raise awareness of the inherent risks in payment servicing that many SuttonPark victims may not have been fully aware. The research also aims to promote the creation and/or improvement of disclosures to partial sellers of structured settlement payment rights the disclosures made to underserved investors in structured settlement receivables.

Believe it or not I've spoken to investors who bought in 2010-2012 who can't get a return call from the person who got them into this mess and the person who got them into this mess is still alive!

 

SuttonPark Victim Update December 18, 2024 SuttonPark in "Yad Stick"

by Structured Settlement Watchdog

News from SuttonPark victim Jim Yad, the nice Puma Arizona man, 66.  Jim Yad has received his December 2024 payment from SuttonPark by direct deposit, just before tucking into a not so tasty lunch of well... a picture tells a thousand words.

You see for Jim, while December's money in, November's is not.  All together now "WHAT DA F?". Not only that I learned from Jim Yad today that he was short changed by $6 in August.

SuttonPark victims are encouraged to file a complaint with the Consumer Financial Protection Bureau and get their story on record with the Consumer Financial Protection Bureau.

Consider also filing a complaint with your state's Consumer Protection Bureau as well. And Percy Forde, if you're still there at SuttonPark, Jim Yad still thinks you're a good guy.

Should you just send a notarized letter to the annuity issuer to stop making payments to SuttonPark?

A company that bought a structured settlement annuity issuer (or possibly its TPA) is asking victims to send a notarized letter to the insurer to stop making payments to the payment servicer. Given that a portion of the payment belongs to an investor because the annuitant sold payments (hence the need for servicing in the first place), please consult a lawyer before proceeding.

What Can You Do?

1. File a Complaint about your experience with SuttonPark to the Consumer Financial Protection Bureau.

Submit a complaint | Consumer Financial Protection Bureau

2. File a Complaint with the State of Florida Consumer Protection Division

File A Complaint | My Florida Legal

SuttonPark Servicing Delays | Who is Going to Pay for the Life Altering Damages Accruing?

by Structured Settlement Watchdog

In SuttonPark, the structured settlement secondary market is currently grappling with a severe humanitarian crisis affecting people all across America.

This could potentially have a detrimental impact on secondary market operations and may even lead to a contraction of the marketplace if there isn't a swift improvement, beginning with transparent and direct communication.

• Victims of SuttonPark are accruing late charges on their obligations due to delayed payments, which they rely on to pay their obligations.
• The delay or absence of these payments puts them at risk of losing their homes, instilling fear and uncertainty.
• The psychological impact on these individuals is significant. Having spent over 22 hours since mid-November in conversation with many affected, the sadness and injustice of their situation is clear.
• The SuttonPark payment servicing victims should be enjoying the holidays. Instead the humanitarian crisis has continued through Thanksgiving, dampening the lead up to Christmas, Hannukah and Kwanzaa

They deserve to be treated with respect. As of this posting, the recorded message from SuttonPark has remained unchanged since November 26, 2024, and lacks credibility due to an unfulfilled promise of payments within 72 hours as stated in SuttonPark's recording. The remaining three employees at SuttonPark doing servicing are undoubtedly overworked and striving to do their best, yet it is logically unfeasible for them to process all the payments or catch up. It is simply impossible.

B Riley Financial is not a receiver according to an industry source in the secondary market and some sources are saying that the contract with B Riley ends at year end. What happens next? Who is running the effing show now? Who fired SuttonPark servicing employees?

While I appreciate exceptional efforts by certain members of the structured settlement secondary market that I've spoken to (they know who they are), there has been no public statement by the National Association of Settlement Purchasers.  Make one NASP.  Put it on your website.  The last new update was in 2021?  National Association of Settlement Purchasers - National Association of Settlement Purchasers

Fred Love, was President of NASP in 2023 and  Chair of its 2023 Annual Conference committee along with Melissa Lerma, his colleague at the time from SuttonPark Capital. 2023_NASP_Conference_at_a_Glance.pdf

The SuttonPark situation needs an inquest. There is no area of the financial markets where a regulator would allow this situation to continue the way SuttonPark has.

 

 

 

SuttonPark Servicing Victim Impact Story December 11, 2024 Yuma Arizona Retiree, 66

by Structured Settlement Watchdog

Jim Yad ("Nickname"), 66, is a retired homebuilder from Yuma Arizona who is unfortunately caught up in the SuttonPark payment servicing mess. He reached out to me on December 9, 2024.

Jim's Structured Settlement

A structured settlement was created as part of a 1992 agreement in a wrongful death medical malpractice lawsuit resulting from the passing of Jim's first wife when he was only 29. Jim was represented by an esteemed lawyer from Binghamton, New York, whom I am acquainted with. Although I was not part of that settlement process, Jim contacted me after reading recent blogs on this platform to assist in providing information to those impacted by the regrettable events at SuttonPark, which is based in Boca Raton in Florida.

The structured settlement included monthly income for life with with payments increasing annually at a fixed rate. and was  funded with an annuity from Allstate Life Insurance Company of New York. Jim was living in New York at the time, later moving to North Carolina and finally settled in Yuma Arizona with his second wife for their golden years.  Jim's children also received structured settlements. Those have been fully paid out.

Allstate Life Insurance Company of New York ceased writing structured settlements in 2013, and Allstate later divested the company through a sale to Wilton Re in 2021. Allstate - Business Wire Press Release - Wilton Re

Jim's Partial Sale of Structured Settlement Payments

Jim Yad sold some of his structured settlement payment rights to a Florida company in 2017. Due to the sale being a partial structured settlement transfer, a payment servicing agreement was arranged and/or ended up with SuttonPark.

The payment servicing experiece went well until Q4 2024 and Jim mentioned very positive interactions over the years with Percy Forde, the Director of Servicing at SuttonPark. Percy Forde is one of the few payment servicing employees that is still believed to be at SuttonPark.  Jim Yad's November payment was still overdue as of Tuesday and the he's worried about the December payment. he sent a communication to [email protected] earlier this week.

As a retiree, Jim relies on his remaining structured settlement payments. He receives his social security check, but the structured settlement payments are crucial, and it's painful to be affected by the decision to lay off most of the SuttonPark servicing department. This left fewer than five people to manage the overwhelming task of processing thousands of payments, akin to moving a "pig through the python" in the Florida Everglades or a "herd of large capybara through an anaconda in the Pantanal" This situation arose at what was once the largest aggregator and servicer of such payments.I identified the factoring company involved in the deal with Jim and contacted them to explore how they could assist in facilitating the process.

Keep Jim in your prayers as well as all others afflicted by the SuttonPark payment servicing nightmare. I will contnue to publish SuttonPark payment servicing delay impact stories. This situation could have been avoided.

Remember that structured settlement payment servicing is necessary in part because certain insurers do not split payments, or parts of payments. Transfers of payment streams with cost of living increases are commonly subject to payment servicing. 

SuttonPark Payment Servicing Issue if it Could Be Explained in a Single Picture (Figuratively Speaking)  Image Source: Tenor.com

Bloated Monster Snakes GIFfrom Bloated GIFs