Federal Appeals Court Affirms Conviction In Case Arising From Viatical Ponzi Scheme

Federal Appeals Court Affirms Conviction In Case Arising From Viatical Ponzi Scheme

The Eleventh Circuit Court of Appeals last week affirmed the criminal conviction of an attorney who had been involved in a viatical company’s Ponzi scheme. The federal appeals court affirmed the conviction of Anthony Livoti, outside counsel for Mutual Benefits Corporation, concluding that the federal government had presented sufficient evidence for the jury to convict him of two counts of mail fraud, conspiracy to commit mail and wire fraud, and conspiracy to commit money laundering.  He had appealed his conviction,…

Read More Read More

By Allowing Litigation Funder to Recover From Ex-Player, Judge’s Ruling In NFL Concussion Litigation Both Raises Questions While Pointing To Possible Answer

By Allowing Litigation Funder to Recover From Ex-Player, Judge’s Ruling In NFL Concussion Litigation Both Raises Questions While Pointing To Possible Answer

As described here, the judge overseeing the $1 billion settlement of claims by ex-National Football League players against the NFL ordered attorneys for the ex-players to disclose information about prohibited litigation funding agreements. The same judge, Anita B. Brody, in December, 2017, had ruled that litigation funding agreements were violative of the court’s order approving the settlement. One litigation funding company appealed that ruling (see here). The December 2017 ruling did not go as far as it could have, in that…

Read More Read More

Attorney Appearing With Payee Was Paid By Factoring Company, So No ‘Independent Professional Advice’ Under New York’s Structured Settlement Protection Act

Attorney Appearing With Payee Was Paid By Factoring Company, So No ‘Independent Professional Advice’ Under New York’s Structured Settlement Protection Act

As described here, a New York court recently rejected a request for factoring company approval of a transfer of structured settlement payment rights, where an 18-year-old high school student would have sold future payments with a face value of more than $690,000, in exchange for about $265,000. One notable aspect of the court’s ruling in the case (captioned In the Matter of the Petition of American Farms, LLC For Approval of the Transfer of Structured Settlement Payment Rights In Accordance…

Read More Read More

Noting That Wheels Of $600,000 Deal Started Turning Within Two Weeks Of Payee’s 18th Birthday, New York Court Rejects Structured Settlement Factoring Company’s Request For Judicial Approval

Noting That Wheels Of $600,000 Deal Started Turning Within Two Weeks Of Payee’s 18th Birthday, New York Court Rejects Structured Settlement Factoring Company’s Request For Judicial Approval

A structured settlement was set up for payee Daijuan Matos in 2008.  He turned 18 in 2018.  Within two weeks of his 18th birthday, and while he was still in high school, he had not only been approached by a factoring company seeking to purchase his future payments, but had agreed to sell a portion of those payments.  Under the terms of the deal he agreed to, he would sell $1,917.48 out of each payment of $2,750.00 due to be…

Read More Read More

Court Reverses Course, Strikes State Attorney General’s Lawsuit Against Litigation Funder Over NFL, 9/11 Responder Transactions

Court Reverses Course, Strikes State Attorney General’s Lawsuit Against Litigation Funder Over NFL, 9/11 Responder Transactions

A federal court that previously ruled  that the structure of the Consumer Financial Protection Bureau is unconstitutional, while allowing the New York Attorney General to proceed with claims in the same lawsuit, now has reversed course, and dismissed the New York AG’s claims against a litigation funding company accused of scamming 9/11 responders and ex-professional football players. In a September 12 ruling, Judge Loretta Preska dismissed the New York Attorney General’s federal and state law claims against RD Legal Funding over…

Read More Read More

Federal Appeals Court Revives Life Settlements Claims, On Both Sides Of Lawsuit

Federal Appeals Court Revives Life Settlements Claims, On Both Sides Of Lawsuit

A federal appeals court revived claims on both sides of a disputes over a life settlements transaction. In an opinion released last week, Sun Life Assurance Co. of Canada v. Imperial Premium Fin., LLC, Nos. 17-10189, 17-10415 (11th Cir. Sept. 18, 2018), the 11th Circuit Court of Appeals reversed a U.S. District’s Court’s rulings, and is now allowing both the insurer and the life settlements company to proceed with previously-dismissed claims. Summarizing the ruling, the 11th Circuit Court of Appeals…

Read More Read More

CFPB Sues Pension Factoring Companies Over Misleading Business Practices

CFPB Sues Pension Factoring Companies Over Misleading Business Practices

The Consumer Financial Protection Bureau this month sued a group of pension advance company over allegedly misleading practices. The CFPB alleges that the companies violated the Consumer Financial Protection Act of 2010, 12 U.S.C. § 5536(a)(1)(B), by representing that their pension advances were not loans, were not subject to lending laws, and “were comparable in cost to, or cheaper than, credit card debt when, in actuality, the pension-advance products were loans, and were subject to interest rates that were substantially…

Read More Read More

Lawsuit Alleges Financial Advisers Should Have Known Investments With Pension Factoring Company Were Questionable, Says News Report

Lawsuit Alleges Financial Advisers Should Have Known Investments With Pension Factoring Company Were Questionable, Says News Report

The Pittsburgh Post-Gazette today reported that a recently-filed lawsuit alleges that financial advisers and others should have known that investments in a pension-factoring company were questionable. In the story (Investors, Regulators Can’t Find Architect Of Massive Pension Scheme, available here), Len Boselovic reports that “Scott Kohn, an ex-felon who orchestrated a nationwide scheme that victimized retirees as well as investors seeking safe monthly income, is nowhere to be found.” Boselovic said that officials “from Pennsylvania’s Department of Banking and Securities trying…

Read More Read More

Attorney Reportedly Opposes Penalties Following Magistrate’s Recommendations In Life Partners Litigation

Attorney Reportedly Opposes Penalties Following Magistrate’s Recommendations In Life Partners Litigation

A news report says that the lawyer for a bankrupt life settlement company has filed papers opposing penalties against him following a magistrate’s ruling in a long-running legal dispute. Says Law360: “The former top lawyer for bankrupt life settlement trader Life Partners Holdings Inc. urged a federal judge in Texas to reject a report and recommendation from a magistrate judge that he be held liable for the ‘bad actions’ of the company’s former CEO, who was found liable for securities violations.”…

Read More Read More

Commentary: Litigation Funders Are Fighting To ‘Stay In The Shadows’

Commentary: Litigation Funders Are Fighting To ‘Stay In The Shadows’

How much control do litigation funding companies have over the lawsuits they invest in? Litigation funders say ” ‘none,’ but the real answer is ‘we really don’t know.’” So writes Lisa A. Rickard, President of the U.S. Chamber of Commerce’s Institute for Legal Reform in a commentary that appeared yesterday in the New York Law Journal. In the piece, entitled Third-Party Litigation Funders Fight Hard To Stay In The Shadows, Rickard says that “the third-party litigation finance industry must be…

Read More Read More