by Structured Settlement Watchdog®
Structured settlement buyers tempt sellers with grand promises, but one has to wonder whose wallet is really footing the bill for all that generosity!
The press release just been issued by Settlement Marketplace seems great on its face. A company that buys or arranges for the purchase of structured settlement payment rights and other cash flows, has promised to donate 15% of its profits every month to an orphanage in Colombia.
Jorge Cortes, owner of Settlement Marketplace, has apparently promised the children of Instituto Oscar Scarpetta Orejuela, an orphanage in his home country of Colombia, 15% of his profits every month. All of the money that Cortes raises for the orphanage is used to supply the children with food and quality education. The orphanage has been in existence for 80 years in Cali, Colombia.
While Mr. Cortes likely has honorable intentions, the "profits" he generates are derived from tort victims whom his own website describes as being in "hardship" situations. This conflict raises concerns, as the amount of profit Cortes donates may ultimately result in individuals seeking cash through such sales having to sell more of their assets than necessary
While I am sympathetic to the plight of orphans in Cali, Colombia, and other needy individuals worldwide, should we not be concerned about the implications of Mr. Cortes and others employing this advertising strategy to entice unsophisticated tort victims into selling their payment rights without proper disclosure of how such "profits" adversely affect their deals? While immigrants have a long history of sending money back to their home countries, they should not have to resort to borrowing money at high interest rates or jeopardizing their long-term financial security to do so.
The author advises judges and professionals offering independent advice to remain vigilant about this scheme and to conduct their own due diligence.
2015 Update
I checked up on this company and the website is still active but the Twitter Page and Facebook pages for Settlement Marketplace do not exist. According to the Florida Secretary of State, online records at sunbiz.org, Settlement Marketplace LLC was administratively dissolved in 2012 after failing to file an annual report after 2011. So the company was in business for a very short period of time.
http://ads.sixapart.com/custom?id=1000002898807&width=300&height=250&js=1
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