by Structured Settlement Watchdog
Personal injury victims and their families should exercise caution with financial advisers and salespeople who misrepresent structured settlement receivables as structured settlement annuities.
In a March 29, 2017 decision in Greenwald v Caballero-Goehringer, Delaware Superior Court C.A. No. K14C-04-027 JJC. a Delaware Superior Court judge rejected an attempt to portray structured settlement payment rights as an annuity in a minor’s prove up hearing, stating. “The proposed “structured settlement” was described in the Third Petition as a structure to be purchased through a third party to be facilitated by a Houston, Texas law firm. The “annuity” proposed by the Petitioner was in fact a “receivable purchase agreement” which involved purchase of the rights of payment of a structured personal injury settlement from a California injured party having nothing to do with this case. In other words, the annuitant in the proposed plan facilitated by the Texas law firm was the California claimant, not the Minor. Furthermore, despite the Petitioner describing The Hartford as providing the annuity, the seller of the receivable purchase agreement was Genex Capital. No rating was provided for that entity in the petition. The Court denied the Third Petition, without prejudice”
The trail led to Daniel Reisinger, a Pennsylvania and Delaware based actively licensed insurance agent, represented as the owner of the website Safe Investing Services, whose website portrays structured settlement derivatives as Structured Settlement Annuities.
The Delaware Superior Court rightly recognized structured settlement receivables are not annuities. Structured settlement receivables may not have the same statutory protections afforded to the original structured settlement annuitant. Furthermore, there is no protection under structured settlement protection acts for ongoing sales of the structured settlement payment
Genex Capital Corporation is a Delaware based corporation that operates out of a UPS store mailbox in Dover Delaware. Company personnel are ostensibly in Vancouver Canada. From 2013 through 2022 (Source: Wayback Machine), Genex Capital operated Assured Annuity, a website which at some point attempted to validate its use of “annuity” to market structured settlement receivables by citing Merriam Webster dictionary (kids version).
Genex Capital has since eloquently described what investors buy as receivables In legal documents in ongoing litigation in Arizona and Massachusetts. Receivables as in “Receivables Purchase Agreement” which the judge cited in the Greenwald v Caballero-Goehringer case.
We see this as a very positive development and we encourage others marketing structured settlement receivables to investors to use the term consistent with their Receivables Purchase Agreements.
Updated