by Structured Settlement Watchdog
The Maryland Court of Special Appeals reversed the trial judge’s approval of a class action settlement with the victims of the exploitative Access Funding lead paint settlement scheme, finding that parties could NOT bargaina away Maryland Consumer Protection Division’s right to seek restitution from the company.
Access Funding LLC acquired 163 structured settlements from 100 victims for pennies on the dollar and many of its victims were what were refered to in the Access Funindg training manual as “lead paint virgins”, including the late Freddie Gray.
Criminal indictments filed against Maryland company that targeted Baltimore lead paint victims’ settlements (baltimoresun.com)
Background on the Appeal [ Lee Jundanian and Company’s Two Year Pillage of Baltimore “Lead Paint Virgins” | Victims to Get 4% of Money Owed Says AG] January 23, 2019]
More pain for skittish investors in Structured Settlement Receivables (Factored and assigned structured settlement payment streams)
The reverse on appeal deeply affects investors who were sold factored structured settlement payment streams from the same universe of cases using the scam label “secondary market annuity”. Payments to those investors had been suspended pending the outcome of the appeal. In December 2018, one of them Barry Cooper, a Florida retiree filed a FINRA claim against Somerset Securities, inc. and several associated individuals over that investment.
Cooper’s FINRA claim against Thomas B. Hamlin alleges breach of fiduciary duty, negligence, negligent supervision, common law misrepresentation, breach of contract and unauthorized trading. Transaction at issue occurred in 2013, and involved a Factored Structured Settlement “FSS” payment stream through an approved Outside Business Activity “OBA”. Source: FINRA Broker Check Cooper’s claim against Brian Thomas Horn alleges RR (Registered Representative) recommended the claimant use the majority of his retirement savings to purchase a Secondary Market Annuity that was unsuitable for the claimant, that the product was misrepresented as being a safe investment, and that the solicitation was made to the claimant’s wife who had no authority over the claimant’s account. Product purchased in 2014. Source : FINRA Broker Check
Cooper was due to begin receiving payments in January 2018. At the time of publication Cooper had not received a penny, having invested his entire thrift savings plan money from years of back breaking work in the Navy.
Another blemish for those pushing the “scam” label of “secondary market annuities” to lure investors into purchasing structured settlement receivables
Investors in factored structured settlement receivables are not purchasing annuities or insurance products, regardless of any claims to the contrary
On April 24, 2019 the Washington Post picked up the story. Read Victims of lead-paint poisoning could receive more money following ruling