by John Darer CLU ChFC CSSC RSP CLTC
On August 21, 2014, NBC News 4 New York featured a segment on Executive Life of New York and how the recent ELNY liquidation has affected ELNY annuitants Glenn Arendsorf and Eric Rabinowitz. both of whom had their benefits cut by over 50%. Hosted by NBC News Anchor Tom Llamas, the segment featured commentary by Stamford CT attorney Eddie Stone and structured settlement expert and settlement planner John Darer, yours truly.
The focus of the segment was the junk bond investment portfolio of ELNY and how the alleged mismanagement of the ELNY estate by the New York Liquidation Bureau over a 23 year period has affected these two victims’ lives. Llamas closes with the message I conveyed in our August 8, 2014 interview, concerning the importance of diversificatio. .
All 1500 or so ELNY victims had their entire structured settlement placed with ELNY
No diversification despite the clear warning signs
Regardless of the mismanagement alleged against the New York State agency, it is an unfortunate fact that had these annuitants’ portfolios been diversified the impact of ELNY would have been much less.
That said, in 2007, Eric Rabinowitz was showcased by former New York governor Eliot Spitzer’s team in what turned out to be a false hope that the ELNY shortfalls were resolved. When his case was settled, the judge presiding over the Infant Comproimise hearing, purportedly told Eric’s mother there was “a better chance of the sun not shining than ELNY not paying.” If made, it was inappropriate for a judge, let alone a financial planenr or licensed insurance professional.. I was reminded recently that Larry G. was told the same thing by his lawyer.
In April 1991, the Executive Life Insurance Company of New York (ELNY) was placed in rehabilitation by the New York Superintendent of Insurance and liquidated in August 9, 2013.
Postscript
“John, Thank you for putting yourself out there and educating the public about our current financial situation. I appreciate it very much” -email from another ELNY victim 08/26/2014.
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