by John Darer CLU ChFC MSSC RSP CLTC
The Wall Case is the Watershed case for how investors can and have lost money in receivables
The structured settlement receivables were deceptively marketed as “secondary market annuities” when the investments were not annuities
Even with this knowledge the Montana based owner of Secondarymarketannuity(dot)net is still soliciting investors with the following claims (as of March 26, 2017)
- Utmost safety
- Would your IRA or investment portfolio benefit by a guaranteed income stream or absolute guaranteed lump sum from one of the world’s strongest carriers?
- Absolute guaranteed payments
- AAA credit ratings
- Unsurpassed safety
- High Yield With No risk
Investors likely lack the statutory protections for people who actually own annuities
Even though structured settlement payment rights are not annuities (they are structured settlement receivables, not annuities), and consumer investors likely lack the statutory protections granted to legitimate annuity purchasers, Secondarymarketannuity(dot)net is displaying the logos of life insurance companies such as the following:
- Prudential Insurance Company of America
- Pacific Life Insurance Company and Pacific Life and Annuity Company
- New York Life Insurance Company
- American General Life Insurance Company
- MetLife
Authorized use of Insurer Branding and Logos for the purpose of selling receivables ls highly doubtful
None of these annuity-issuing life insurance companies offer “secondary market annuities,” and I highly doubt that any of them authorized the use of their trademarked logos to promote the sales of structured settlement receivables..
Moreover, the owners of the Montana company that owns the website have admitted in writing (on another site) that they use the term “secondary market annuities”, “because it easier to say” than factored structured settlements. [ see reference to Annuity Straight Talk, bullet point #2 in Secondary Market Annuity | The Structured Settlement Receivables Scam Label to Be Stopped – Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews
A New Paradigm Exists for Intermediaries and Investors
In the post-Wall era, the claims made to attract investors in structured settlement receivables cannot be justified in the absolute terms used by the Montana owners of SecondaryMarketAnnuity(dot)net. With their competitor, Somerset Wealth, halting sales of structured settlement receivables due to the uncertainty surrounding payment rights stemming from the Baltimore lead paint cases, making such claims seems highly irresponsible.
Criticism of Such Companies is Not Only Fair, it Has Been Consistent and Ongoing
In 2014, the Massachusetts-based SHP Financial launched a disastrous advertising campaign, tweeting misleading “deals of the day” that inaccurately described structured settlement payment rights as annuities and “just like CDs.” To add to the controversy, they used insurance company logos without permission until they were compelled to stop. [see SHP Financial Using Life Insurer Trade Marks to Sell Structured Settlement Payment Rights as Annuities April 25, 2014]
Related Reading
Wall v Altium: Understanding Legal Obligations – Structured Settlements 4Real®Blog February 16, 2019
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