by Structured Settlement Watchdog
Advance Funding was on the list of companies given to seniors who were state lottery winners to contact if they wanted to liquidate their lottery settlement annuity when the state lottery only offered an annuity option. One wonders what vetting process the lottery commission used to construct the list of names? They certainly have created a moral hazard.
The retirees won the lottery in 2012 and were approached by, among others, a representative of Advance Funding, operated by Dan Cevallos, a scoundrel, who unknown to the retirees was a convicted felon who was also barred from FINRA for life. The retirees invested with Cevallos' company and while they have received the majority of their principal back but have received zero interest since they made the investment. Payments slowed to a trickle and then recently the retirees learned that a purportedly a company called Majestic Funding had taken over Advance Funding LLC. Both Advance Funding and Majestic Funding LLC lists David Allen Linn as agent in New York State filings. Download Advance Funding LLC NY DOS Download Majestic Funding LLC NY DOS
David Allen Linn is a disbarred attorney since 2013. Among the multiple sustained indiscretions, David Alan Linn converted client funds. Read about David Allen Linn disbarred as New York lawyer here.
What is a Ponzi Scheme?
A Ponzi scheme is a type of fraudulent activity that promises to generate fabulous returns for investors with little or no risk. However, with a Ponzi scheme, the returns are not based on anything substantial or real.The result is that the investor stands to lose a considerable amount of money over time.
In order to keep up with the deceitful plan, Ponzi schemers bring on even more investors to pay off the initial investors. As is the case with any Ponzi scheme, when this methodology implodes, the Ponzi structure collapses.
An Advance Funding investor was recently told that it would take six months or so for Majestic to drum up business to be able to pay off the Advance Funding investors.
A Question to Be Asked Again, and Again, of New York Law Enforcement and New York Regulators
Why does a felon and a FINRA barred person get to operate a financial business in New York State, a company whose agent for service of process is a disbarred lawyer in a space where they can take advantage of people who cannot afford to lose? Injury victims and retirees cannot afford to lose. I asked the same questions when jailed and convicted Ponzi Scheme felon Todd Dyer tried to sashay his way into operating a structured settlement income stream exchange.
Thankfully Income Stream Exchange's Todd Dyer, another scoundrel and convicted felon, with a 26 year criminal history, was jailed again for 15 years, in 2017 before he could be fully unleashed.
The Attorney General of New York and attorney generals throughout the USA, the CFPB need to step in and do something. How many more vulnerable people have to be scammed before they step in? A robust licensing standard needs to be instituted in all 50 states.
In my opinion, if you are approached by Advance Funding LLC, or Majestic Funding, avoid! Cevallos has no credentials to provide financial advice or sell you investments
Cevallos is known to use an alias like "Jack Taylor".