Paid Google Ads for CrowFly LLC of Buffalo New York, which 5 months before it shut its doors in August 2022, continued to solicit investors to “purchase a structured settlement annuity” when it was not true.
We tracked CrowFly’s conduct for 2 years because of the core belief, based on state and federal regulatory publications, that this was not true and it’s was simply not right as a result. It is believed that CrowFly never purchased an actual structured settlement annuity and thus CrowFly would be hard pressed to prove that it has actually purchased a structured settlement annuity or sold an actual structured settlement annuity to an investor.
This exhibit is provided as a public service to investors, consuemrs, regulators and legislators
In viewing this gallery, please bear in mind the following:
- The business of buying and selling structured settlement payment rights is a legal business.
- We questioned CrowFly’s conduct with respect to marketing and advertising to investors (as we would, and have done with any other company) using the term “buy a structured settlement annuity” when what is being sold to investors is not an annuity. The investment should be properly referred to as an investment in structured settlement payment rights, a defined term that is right in the United States Internal Revenue Code IRC Section 5891(c)(2), or structured settlement receivables.
- Investors in structured settlement payment rights (structured settlement receivables) are not buying an annuity. Sellers of structured settlement payment rights are not selling an annuity.
- The annuity that funds the structured settlement from which a seller’s structured settlement payments are generated, does not change hands in a structured settlement factoring transaction. The terms of the Settlement Agreement and Release and the Qualfied Assignment make it clear that the annuity is not owned by the annuitant and not the annuitant may not sell it.
- CrowFly’s ongoing conduct as has been detailed here and cited carefully in blogs since 2020, defies the National Association of Insurance Commissioners Statutory Issue Paper No. 160 and state insurance departments’ definitions of annuity.
- Oxford English dictionary defines an advertisement as “a notice or announcement in a public medium promoting a product, service, or event or publicizing a job vacancy.
- An advertisement (often shortened to advert or ad) is the promotion of a product, brand or service to a viewership in order to attract interest, engagement and sales. Advertisements come in many forms, from copy to interactive video. An advertisement is different from other types of marketing because it is paid for, and because the creator of an advert has total control over the content and message. Source : Adjust.com
- According to Google (the source of the ads retrieved and displayed for critical commentary below, “Google Ads makes it easy to show the world what’s unique about your business, so you can reach customers searching for what you offer”.
- Inconsistent with its paid ads, CrowFly LLC admitted in writing on its website, that it has no insurance license or securities license and does not provide advice concerning either.
- As a general matter the question of whether annuity is an appropriate term to use in this manner has been subject of ongoing coverage in this blog for over a decade, predating the existence and subsequent demise of CrowFly.
Disclaimer: The use of any marks herein does not suggest any sponsorship, affiliation or relationship with owners of such marks. All marks are used in the context of fair use to discuss this newsworthy topic.
Last updated April 12, 2022