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Author: Peter Vodola

Report: J.G. Wentworth To File For Second Bankruptcy In Less Than A Decade

Report: J.G. Wentworth To File For Second Bankruptcy In Less Than A Decade

The Philadelphia Business Journal on Friday reported that J.G. Wentworth will file for bankruptcy, the second bankruptcy filing by the factoring company in less than a decade. The Business Journal said the Pennsylvania “company reached an agreement with lenders to significantly reduce its debt and enhance its balance sheet” and that the “agreement also calls for the board of directors the be reconstituted to reflect new ownership of the company.” In addition, according to the report, the “restructuring will be…

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Appeals Court Affirms Dismissal of Antitrust, False Advertising Claims Brought by One Factoring Company Against Another

Appeals Court Affirms Dismissal of Antitrust, False Advertising Claims Brought by One Factoring Company Against Another

A federal court of appeals affirmed the dismissal of factoring company’s lawsuit against another factoring company over practices that allegedly violated antitrust, false advertising and other unfair trade practices. The Ninth Circuit Court of Appeals last week affirmed the decision by the U.S. District Court for the Central District of California to dismiss the complaint filed by Novation Ventures, LLC, against J.G. Wentworth and affiliated companies, including Peachtree Financial. About Novation’s antitrust claims, the Ninth Circuit said in Novation Ventures…

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Claims Against Viatical Company Dismissed, Claim against Agent Survives In Lawsuit Over Deal Where – 20 Years After $20,000 Investment – Viators Are Still Alive

Claims Against Viatical Company Dismissed, Claim against Agent Survives In Lawsuit Over Deal Where – 20 Years After $20,000 Investment – Viators Are Still Alive

And, as if on cue given the U.S. News & World Report story (here) about how investors run a serious risk if an insured lives longer than expected, a federal court in New York issues a ruling in a lawsuit involving a 1998 viatical investment. “Nearly twenty years later, the viators are still alive, and plaintiff is without any return on his investment,” said the court in Amberger v. Legacy Capital Corp., 17 Civ. 532(NRB), 2017 U.S. Dist. LEXIS 171816…

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Life Settlements As ‘Morbid’ Investments: ‘An Asset and A Liability’

Life Settlements As ‘Morbid’ Investments: ‘An Asset and A Liability’

A U.S. News and World Report article about life settlements includes a warning from an A.M. Best managing director of insurance-linked securities about how “A life settlement isn’t just an asset; it’s an asset and a liability.” The most significant risk to investors, the article indicates, “is that the insured lives longer than expected and investors end up paying more in premiums than they receive from the death benefit.” The article, “The Morbid Niche of Life Settlement Funds” by Coryanne…

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New York Times: Life Settlements Businesses No Longer Targeting Only the Very Affluent

New York Times: Life Settlements Businesses No Longer Targeting Only the Very Affluent

A New York Times article says that life settlements industry industry, “which previously targeted the very affluent, has begun courting middle class” life insurance policy owners. The article provides a first-hand account of obtaining a quote, as well as commentary about the business, and also points out that – in response to questions about life settlement business practices, such as undisclosed broker commission rates – “43 states have adopted life-settlement regulations, usually requiring that companies be licensed and consumer disclosures.”…

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Florida Court Sentences Factoring Company Attorney for Forging Judges’ Signatures on ‘Orders’ Involving Transfers of Settlement Payments

Florida Court Sentences Factoring Company Attorney for Forging Judges’ Signatures on ‘Orders’ Involving Transfers of Settlement Payments

One-hundred and eleven and three-hundred and sixty-four. One-hundred and eleven is the number of times that Jose Manuel Camacho Jr. was alleged to have forged the signatures of Broward County, Florida, judges on documents that he passed off as “orders” – orders approving transfers of structured settlement payment rights. Three-hundred and sixty-four is the number of days that Camacho was sentenced to spend in county jail, when he was sentenced in August, after pleading guilty to 14 counts of forgery…

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Revised Connecticut Structured Settlement Protection Act Goes Into Effect, Addressing Probate Matters

Revised Connecticut Structured Settlement Protection Act Goes Into Effect, Addressing Probate Matters

The Connecticut Structured Settlement Protection Act is one of 49 state statutes that provide that a transaction involving the sale or loan or the right to receive future structured settlement payments is ineffective unless the purchaser meets certain requirements such as providing a disclosure statement to the individual seller. Perhaps the most important requirement is that the purchaser (the “transferee”, in the words of the statute, which is usually a factoring company) must begin a court proceeding and bring the transaction before…

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What’s Happened With the Litigation Over Settlement Factoring in Maryland

What’s Happened With the Litigation Over Settlement Factoring in Maryland

Maryland has been at the center of attention since the Washington Post began its series of news stories about structured settlement factoring. Some of what’s happened in Maryland involve changes in legislation (see here) or judicial rules (see here). Another front has been in state court, where two lawsuits have been at the center of attention, when the topic is structured settlement factoring. One lawsuit was brought by the Maryland Attorney General, which sued factoring company, Access Funding, LLC., the…

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Federal Court Dismisses Some, But Not All, Counts by CFPB Against Structured Settlement Factoring Company

Federal Court Dismisses Some, But Not All, Counts by CFPB Against Structured Settlement Factoring Company

A federal district court this month dismissed four of five counts of a complaint brought by the Consumer Financial Protection Bureau against a structured settlement factoring company’s allegedly abusive business practices. The ruling by District Judge J. Frederic Motz of the U.S. District Court for the District of Maryland, in Consumer Fin. Proc. Bureau v. Access Funding, L.L.C., Civil No. 16-03759-JFM, 2017 U.S. Dist. LEXIS 149519 (D.Md. Sept. 13, 2017), lets stand one count concerning allegedly illegal business practices arising…

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What’s Happened With the District of Columbia’s Proposed Structured Settlement Protection Act

What’s Happened With the District of Columbia’s Proposed Structured Settlement Protection Act

Secondary Insurance Market Blog has been posting about the things that happened following the publication, beginning in August, 2015, of a series of Washington Post articles about allegedly predatory practices in the structured settlement factoring industry.  (See the posts here, here, here, and here for more.) As some of those posts describe, the legislatures of Maryland and Virginia revised their state structured settlement protection acts (SSPAs) to provide for more protections for payees (and others) who might be impacted by such…

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