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Author: Peter Vodola

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…

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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.”…

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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…

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Justice Department: Former Attorney Fraudulently Used Client Identities To Obtain Litigation Funding Advances

Justice Department: Former Attorney Fraudulently Used Client Identities To Obtain Litigation Funding Advances

A federal grand jury has indicted a former Georgia attorney for using client identifies to obtain litigation funding advances, according to the U.S. Department of Justice. The U.S. Attorney’s Office for the Northern District of Georgia announced yesterday that Chalmer “Chuck” Detling had been arraigned on multiple counts of wire fraud and identity theft, based on a federal grand jury indictment that alleged that Detling used the identities of 36 former clients without their authorization to obtain, and pocket for…

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What If A Factoring Company Tries To Buy Payments That Don’t Exist? Court Dismisses Petition By Factoring Company

What If A Factoring Company Tries To Buy Payments That Don’t Exist? Court Dismisses Petition By Factoring Company

A structured settlement factoring company filed a petition for approval of a transfer of the right to receive future structured settlement payments.  The petition alleged that the proposed transfer from the payee to the factoring company would meet the requirements of the New York Structured Settlement Protection Act, which provides that such transactions are not legally effective unless and until a court approves the transfer based on a finding that the transfer meets the requirements of the New York SSPA….

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Wall Street Journal: Secondary Insurance Market Company Disappears, Leaving Investors Stranded

Wall Street Journal: Secondary Insurance Market Company Disappears, Leaving Investors Stranded

The Wall Street Journal recently reported that Future Income Payments, LLC, has apparently collapsed and left investors “stranded.” In an article published July 24 (here), the Journal last month said that the company “appears shut” and the man who ran it, Scott Kohn, has disappeared. The Journal said that Kohn was a  “64-year-old felon” who “ran a company from a Nevada strip-mall mailbox” and that investors now say the company “took them for more than $100 million in losses.” Said…

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What Happens When Factoring Companies Ignore Requirements Of Pennsylvania Structured Settlement Protection Act? Recent PSU Report, and Previous Experience In Phillips, Provide Some Examples

What Happens When Factoring Companies Ignore Requirements Of Pennsylvania Structured Settlement Protection Act? Recent PSU Report, and Previous Experience In Phillips, Provide Some Examples

My partner, Kathy Scanlon wrote here and here about a recent Pennsylvania Structured Settlement Protection Act matter, and offered some comments about the statute and relevant judicial rule.  Kathy is admitted to practice in Pennsylvania, and her experience in Pennsylvania structured settlement factoring matters goes back two decades. One Pennsylvania SSPA proceeding that Kathy won early in the statute’s existence illustrates some of the points she made about the need for careful judicial review of such proceedings. In the case…

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Another Reason To Reject Proposed Transaction: No Proof That Settlement Factoring Company Served Payee, Says Court

Another Reason To Reject Proposed Transaction: No Proof That Settlement Factoring Company Served Payee, Says Court

As described here, a New York court this year rejected an “unconscionable” proposed transfer of structured settlement payment rights as failing to meet either the “best interest” or “fair and reasonable” standard of the New York Structured Settlement Protection Act. Acting Supreme Court Justice John H. Rouse, in In the Matter of the Petition of J.G. Wentworth Originations, LLC (Sanders), Index No. 001145, Supreme Court, Suffolk County, N.Y. (N.Y. Sup. Ct. May 21, 2018), also said that the factoring company failed to…

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New York Judge Rejects ‘Unconscionable’ Settlement Factoring Transaction

New York Judge Rejects ‘Unconscionable’ Settlement Factoring Transaction

A New York trial court earlier this year rejected a proposed transfer of structured settlement payment rights as “unconscionable”, since it would involve an exchange of payments “with a present value of $135,010.00 for a sum of only $10,000.00”. In the Matter of the Petition of J.G. Wentworth Originations, LLC (Sanders), Index No. 001145, Supreme Court, Suffolk County, N.Y. (N.Y. Sup. Ct. May 21, 2018), involved a proposed transfer of structured settlement payment rights by payee Frank Sanders. The court…

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Court: No Fraud By Owners In Financing Of Settlement Factoring Company Sale

Court: No Fraud By Owners In Financing Of Settlement Factoring Company Sale

A New York court last month issued an opinion in a long-running dispute over the financing of a sale of a structured settlement factoring company, dismissing the claims that the owners of the factoring company engaged in fraud to shield assets from the prospective purchaser. In describing the decision, one news report put it this way: “A New York state judge . . . threw out an investment company’s lawsuit accusing the majority owners of a structured-settlement buyout company of…

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