Browsed by
Category: Annuities

ABC News Invokes Jacob and Esau In Telling Pension Factoring Tale

ABC News Invokes Jacob and Esau In Telling Pension Factoring Tale

Many media outlets have had stories in the past few weeks about the attention given by federal and state officials to pension factoring.  Two of the more recent Secondary Insurance Market Blog posts on the subject, containing links and round-ups of such stories, are here and here. And then there is the ABC News story that appeared under the headline ‘Selling Your Pension For Cash Lump Sum: Pros, Mostly Cons’.  The story begins with a reference to the Old Testament story…

Read More Read More

‘Think Twice Before Selling Pension’ Says CNBC Story

‘Think Twice Before Selling Pension’ Says CNBC Story

A number of recent stories and posts in this blog have described the attention given by federal and state regulators to pension factoring.  The most recent post (which also includes links to the previous six) is available on Secondary Market Blog at this post. And the news stories on pension factoring continue. CNBC ran a story under the headline “Seniors Warned, Think Twice Before Selling Pension.”  The story quotes Lori Schock, direct of investor education at the Seurities and Exchange…

Read More Read More

U.S. Senators Want To Know Whether State Attorneys General Have Uncovered Pension Factoring Abuses

U.S. Senators Want To Know Whether State Attorneys General Have Uncovered Pension Factoring Abuses

State officials in New York and Massachusetts are investigating pension factoring and possible abuses by pension factoring companies, as described here. Have state attorneys general uncovered such abuses? Some U.S. Senators want to know, according to a report (available here) published last week, which said that the chairman and ranking member of the Senate Health, Education, Labor and Pensions Committee sent a letter to the National Association of Attorneys General, requesting documentation and information about those who may have been…

Read More Read More

Wall Street Journal: Senate Investigating Pension Factoring

Wall Street Journal: Senate Investigating Pension Factoring

Today’s Wall Street Journal reports that the U.S. Senate is investigating “a controversial business in which retirees sell pieces of their future pension income to investors for a lump-sum cash payment.” According to the Journal, the Senate Committee on Health, Education, Labor and Pensions “disclosed the probe in a letter Friday to state attorneys general, who were asked by lawmakers for help determining if some of the deals flout federal or state laws.” The story, “Senate Launches Pension-Sale Probe”, is…

Read More Read More

The Problem With Military Pension Factoring? For One, It May Be Illegal

The Problem With Military Pension Factoring? For One, It May Be Illegal

In the past week, considerable attention has been focused on the issue of pension factoring.  Sometimes, the news stories and press releases (which can be found at the links at the prior posts here, here, here and here) also have an emphasis about the problem of military pension factoring. Why is there a problem with military pension factoring? Well, putting aside the policy issues, there is one significant problem or potential problem: such transactions might be against the law. An…

Read More Read More

Editorial Slams ‘Pension Predators’

Editorial Slams ‘Pension Predators’

‘Pension Predators’ is the headline over an editorial in The New York Times today.  The Times editorial board’s opinion follows the news of investigations by New York and Massachusetts officials into the secondary market for pension payments, and described in these earlier posts here, here, and here (which also mention the alerts put out by the SEC and FINRA).  The Times also reported on New York’s investigation in a May 7, 2013, story, “New York Investigating Pension-Advance Firms”. The Times…

Read More Read More

Court Concludes Annuity Payments Had Been Assigned

Court Concludes Annuity Payments Had Been Assigned

Annuity payments are sometimes the subjects of assignment agreements.  That obvious fact sometimes gets clouded by the attention and advertising relating to transfers of structured settlement payment rights; those rights are funded by an annuity, but the annuity itself is not transferred in such transactions. What happens when an annuitant, receiving payments under a non-structured-settlement annuity, enters into agreements to sell her rights, then tells the annuity company that she is entitled to the payments? That was the situation in…

Read More Read More

Trial May Draw Attention To Stranger-Originated Annuities, Says Report

Trial May Draw Attention To Stranger-Originated Annuities, Says Report

A fraud case going to trial in November “could thrust the issue of stranger-originated annuity transactions back in front of state regulators”, according to an SNL Financial report (available to subscribers here). The story concerns the upcoming criminal trial of Joseph Caramadre. The case of is perhaps the most widely-publicized legal matter involving stranger-originated annuities, or STOA transactions. The SNL Financial story comes after a prominently-placed piece in Pro Publica, picked up by the Huffington Post. As described in the SNL…

Read More Read More

Wentworth For Sale, According to Reports In The Past Month

Wentworth For Sale, According to Reports In The Past Month

J.G. Wentworth is for sale, according to news reports from earlier this month. The New York Post reported that private equity firm JLL Partners had been seeking to sell J.G. Wentworth – a secondary insurance market company that has repeatedly been referred to over the years as the largest purchaser of structured settlement payment rights. According to the Post's story, available here, JLL Partners is looking for $1 billion as a purchase price.  Said the Post: "[a]pparently, the owner of…

Read More Read More