Maryland Attorney General Sues Factoring Company

Maryland Attorney General Sues Factoring Company

The Washington Post and 60 Minutes have reported this week that the Maryland Attorney General has filed a lawsuit against a factoring company whose practices allegedly include the targeting of lead paint poisoning victims as prospective customers of its structured settlement payment purchases.

The Attorney General’s lawsuit alleges that factoring company Access Funding, along with other defendants, made misrepresentations to Maryland courts when the company obtained orders approving transfers of structured settlement payment rights, and that those orders therefore should be invalidated.

In fact, the Attorney General seeks to have declared void more than 100 transfers, dating from 2013 to 2015.

Each of the transfers was court approved, in proceedings brought pursuant to the Maryland Structured Settlement Protection Act, but according to the Maryland Attorney General’s lawsuit, the orders were procured through material omissions and misrepresentations, including the representation that the payees in each case had received independent professional advice when the advice that they received was from an attorney who was not “independent” as that term is defined in the Maryland SSPA.

Reports about the Maryland Attorney General’s lawsuit include the following:

  • Company that reaped millions from deals with Baltimore’s lead-paint poisoning victims violated law, authorities say, appearing in the May 11 edition of the Washington Post, with an online version available here; and
  • Maryland A.G. says company targeted lead poisoning victims, appearing on the CBS television news program 60 Minutes, with an online version available here.
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