Recent Developments
A Statement from Somerset Wealth Strategies, LLC
A Secondary Market Annuity “SMA” is not an annuity at all. It is actually a Factored Structured Settlement, (FSS) whereby one is purchasing the rights to receive payments from a structured settlement that is funded by an annuity, and is not purchasing the annuity itself. The entity that issues the annuity (and therefore responsible to make such payments) is usually a highly rated insurance company. It is important to understand that while the payments are funded by annuities, FSS’s are not annuities.
While FSS’s are generally considered to be safe and stable, there have several developments over the past several years in the factored structured settlement industry that have identified new risks and concerns which need to be seriously considered, along with other factors described in this site, prior to investing in a FSS. Specifically, the Attorney General of the State of Maryland has filed a lawsuit against a factoring company that originated FSS’s, the companies’ principals, and others associated with the company, to declare invalid certain court orders obtained in Maryland that approved the transfer of payments.
The lawsuit alleges that a factoring company that purchased and then resold to investors the right to payments fraudulently misled annuitants who sold their rights to payments and the courts that approved the transfers and did not follow the Maryland law that governs the sale of these rights to payments. In addition, court orders in other states have been attacked by litigious plaintiffs lawyers on behalf of sellers of payments who claim that their laws have been violated. Even law firms have been sued for fraudulently obtaining court orders.
More recently, there have been allegations of alleged venue shopping (moving sellers of payments to states in which it is easier to obtain court approval in order to transfer payments), mishandling transfer proceedings by guardians, capacity challenges, and a recent class action alleging other improprieties in obtaining transfer orders. These lawsuits, if successful, could result in investors who purchased FSS’s not receiving a portion or even any of the payments they purchased.
While these actions are certainly not wide-spread throughout the industry, and represent only a very small fraction of FSS’s , in an abundance of caution, Somerset decided some time ago, for the protection of potential purchasers of FSS’s, to suspend its retail Factored Structured Settlement program indefinitely. Somerset is monitoring these developments closely on an ongoing basis. As a service to our clients and others who may have purchased and currently own Factored Structured Settlement payment rights, Somerset will continue to inform investors of what we learn. If you would like further information and would like to discuss your existing FSS payment stream(s) please contact Somerset Wealth Strategies at (800) 813-4000.
In The News
He forged signatures of judges over 100 times. Now this lawyer is going to jail
www.miamiherald.com
www.miamiherald.com
In the United States district court for the eastern district of Pennsylvania
www.paed.uscourts.gov
www.paed.uscourts.gov
CFPB Sues Access Funding for Scamming Lead-Paint Poisoning Victims Out of Settlement Money
www.consumerfinance.gov
www.consumerfinance.gov
How Companies Make Millions Off Lead-Poisoned, Poor Blacks
www.washingtonpost.com
www.washingtonpost.com
Md. Attorney General Seeks Lawyers’ Records On Structured Settlement Sales
www.washingtonpost.com
www.washingtonpost.com
Maryland Attorney General Urges Structured Settlement Reforms
www.baltimoresun.com
www.baltimoresun.com
Maryland A.G. Says Company Targeted Lead Poisoning Victims
www.cbsnews.com
www.cbsnews.com
Travelers Sues Paris & Chaikin, Ex-Clients In Forgery Row
www.law360.com
www.law360.com
Paralegal Indicted For Forging Signatures Of 76 Judges
www.newyorklawjournal.com
www.newyorklawjournal.com
Statement Response To MD
nasp-usa.com
nasp-usa.com
CFPB Won’t Set Aside Info Demand To J.G. Wentworth
legalnewsline.com
legalnewsline.com
CFPB Takes Another Challenge To Its Jurisdiction To Court
www.cfpbmonitor.com
www.cfpbmonitor.com
What Our Clients Say:
“Somerset you are the BEST! I went from earning 1.5% to 2% on CDs to 6% and 6.50% with New York Life and Metlife SMAs!"
- Maryanne M., Illinois
“I was about to give up hope of ever being able to achieve a decent rate on the fixed portion my portfolio, until I discovered Secondary Market Annuities and Somerset. After doing thorough research, I decided to go through Somerset because of their process, knowledge, professionalism and the fact that they require outside attorneys to review every transaction at no additional charge to me.”
- Ed M. Maryland
