Browsed by
Category: Structured Settlements

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

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….

Read More Read More

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…

Read More Read More

While Pennsylvania Law Requires That Court Be Given Accurate Details About Settlement Factoring, Vigilant Judge May Be The Best Protection Against ‘Unreliable’ Information

While Pennsylvania Law Requires That Court Be Given Accurate Details About Settlement Factoring, Vigilant Judge May Be The Best Protection Against ‘Unreliable’ Information

The Pennsylvania Structured Settlement Protection Act is the statute that led to a request for judicial approval of a proposed transaction involving a Penn State University sexual abuse settlement. That matter, described in more detail here, led a Pennsylvania judge this month to reject to purchasing company’s “abysmal” deal. The Pennsylvania Structured Settlement Protection Act, like all forty-nine state SSPAs, provides that a structured settlement payee (like the victim in the Penn State case) can sell the rights to future…

Read More Read More

Like Sharks ‘With Blood In The Water’: News Report Says Judge Criticizes Factoring Company For ‘Abysmal’ Structured Settlement Transfer Proposal And ‘Completely Unreliable’ Court Filings

Like Sharks ‘With Blood In The Water’: News Report Says Judge Criticizes Factoring Company For ‘Abysmal’ Structured Settlement Transfer Proposal And ‘Completely Unreliable’ Court Filings

A Pennsylvania judge this week said that structured settlement factoring companies were like “sharks” with “blood in the water” before rejecting a proposed factoring transaction – involving nearly $3 million in future payments – that was “abysmal” and involved court-filed papers that were “completely unreliable”. That’s what was reported by a newspaper in West Chester, Pennsylvania, the Daily Local News, in an article headlined Judge Denies Payout In PSU Victim’s Case. The newspaper reported that the structured settlement payee was a victim…

Read More Read More

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…

Read More Read More

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…

Read More Read More

No Proof That Factoring Company Notified California Attorney General, Payee, Others, Says Court In Rejecting Proposed Transfer

No Proof That Factoring Company Notified California Attorney General, Payee, Others, Says Court In Rejecting Proposed Transfer

The payee changed his mind about selling his settlement payment rights, and the factoring company provided the court with no proof of service on interesting parties and included a prohibited provision in its proposed contract, so a California court recently issued a ruling rejecting a proposed transfer of structured settlement payment rights. Orange County, California, Superior Court Judge Robert J. Moss issued a May 18, 2018 tentative order denying the petition for court approval, under the California Structured Settlement Protection…

Read More Read More

News Reports Highlight Developments in Woodbridge Bankruptcy, SEC Proceedings

News Reports Highlight Developments in Woodbridge Bankruptcy, SEC Proceedings

The Woodbridge Group of Companies, LLC, filed for bankruptcy in December, shortly before the Securities and Exchange Commission filed a lawsuit alleging the company ran a billion-dollar Ponzi scheme. Other lawsuits followed, and this month, there have been news reports about developments in the bankruptcy proceeding, the SEC lawsuit, and other actions involving the company – a company that perhaps was perhaps best known for real estate investments but whose businesses also included structured settlement factoring companies Woodbridge Structured Funding, Ash…

Read More Read More

Florida Court Rules That Factoring Company Failed To Include Statutorily-Required Choice-Of-Venue Clause In Proposed Contract

Florida Court Rules That Factoring Company Failed To Include Statutorily-Required Choice-Of-Venue Clause In Proposed Contract

The Florida court that recently rejected a proposed transfer of structured settlement payment rights because the transaction violated New York’s structured judgment law also addressed the fact that the proposed contract did not contain a provision required under Florida law. In the opinion in In Re: Approval Of Transfer Of Structured Settlement Payment Rights Between JLC Capital Funding and Ortega, Case No.: 16-CA-003649, 2018 WL 1896171, Circuit Court, Lee County, Fla. (Fla. Cir. Ct. Mar. 28, 2018), the Florida Circuit Court…

Read More Read More