by Structured Settlement Watchdog®
A New York Daily News article on the Scott Rothstein "structured settlement" Ponzi scheme perfectly showcases the fine art of lazy reporting—where seeking qualified sources or basic legal facts is apparently optional. Truly, journalism at its most disappointing!
The New York Daily News published the following in an article dated November 12, 2009 and attributed it to the Reuters news organization:
"The settlement ventures allegedly offered to investors by Rothstein involved lucrative whistle-blower and employment discrimination cases. The investors would make up-front cash payments to individuals owed money by the courts to buy the right to collect the full amount of the settlements later". (underline for emphasis)
Comments
- A minimal investigation by Reuters and the New York Daily News would reveal that courts are not obligated to pay individuals as a result of a successful lawsuit.
- In a lawsuit, there are plaintiffs and defendants. In Qui Tam (whistleblower) cases, the plaintiffs are known by the Civil War-era term "Relators." The defendant might or might not have insurance.
- Whether a legal case is resolved through (1) negotiated settlement, (2) arbitration, or (3) bench or jury verdict/judgment, the terms of the resolution will specify who is responsible for payment, the amount to be paid, and the recipient. Generally the Defendant will pay, or. if insured, the insurer on behalf of the Defendant.
This author, John Darer offers his services as a qualified resource to any investigative reporter, or any news organization with an interest to accurately report about structured settlement, settlement planning, structured settlement factoring, structured settlement factoring company business practices or legal settlements. In addition to the personal knowledge of this author, John Darer can provide introductions to other legitimate sources of information. on these topics and other related topics to help reporters get to the information they need to write accurate news pieces.
John Darer has written thousands of blog posts on the subject matter described, has more than 40 years of financial services experience including over 30 in the stuctured settlements. He is also a featured structured settlement expert commentator on The Legal Broadcast Network. Click for John Darer's full bio.
Members of the media may also wish to refer to:
Glossary of Structured Settlement Terms, Definitions, Keywords and Phrases for Structured Settlement Planning and Recovery Management
Last updated August 20, 2025
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