Pension Assignment Problems Are Coming Back

Just when I thought the pension assignment industry was dead, they keep popping back up. The current problem seems to be collection effords driven by the "investors" who purchase the pension assignments.  I have beeen dealing with these cases since 2014.  Below is from a blog entry that I wrote initially in 2015. 

In my opinion, these contracts are illegal not just from the point of view of the seller, but also from the point of view of the buyer as well.  From the seller's point of view, they are disguised loans without required disclosure. From the buyers' point of view, they are illegal securities.  The basic rule of securities law is that, unless an exemption applies, the security must be registered and the seller must be licensed to sell the security.  In most of these cases, the security is not registered and the seller is not licensed to sell the security. 

Many times these pension securities are sold to unsuspecting buyers by their trusted life insurance agents.  These life insurance agents may have a bond and professional liability insurance. This is important because the companies putting these securities together may be practically insolvent or their assets may be out of reach of a reasonable-cost lawsuit.  The sellers' only recourse may be to bring a claim against the life insurance agent or other person who sold them the security. 

Note this applies not just to pension securities but other investments that might be sold by brokers and agents.  I have seen cases involving illegal church bonds, for example. 

If you bought a pension investment that is not performing, or were sold some other type of worthless security from a life insurance agent, including church bonds or unregistered corporate bonds, please call my office at 317-662-4529.

Of course, we still represent consumers who have sold part of their pensions. Here are some of the companies that are involved in the industry

Voyager Financial Group, LLC (also doing business as Pension4Case, Cash out my Pension, Buy Your Pension)
Veterans Benefit League
Cash Flow Investment Partners
LumpSum Pension Advance
Pension Funding, LLC
Pensions Annuities & Settlements LLC
Pension Income LLC
DFR Pension Funding
Veterans Benefit Leverage
First American Finance Corporation
Investing Forward (Termbrokers LLC)

We're Still Looking for Pension Factoring (Pension Assignment) Cases - Especially Veterans' Pensions

We are still interested in helping people who assigned all or part of their pensions to third party companies in exchange for a lump sum.   It is a lot easier to stop the payments going out than to collect the money once it has been taken from you.  Please call us at 317-662-4529.

More on Pension Harvesting Schemes

I am continuing to work on issues involving pension harvesting schemes.  Retirees are the prey for these companies. They identify senior citizens in need of cash and tell them they can get them money secured by their pensions.  Here's where it gets weird.  We think of arrangements where you get money now and pay back money in installments as loans. These companies sell contracts that do just that, give you money up front that you pay back, but the companies claim they aren't loans. They claim they are turning your pension into annuities and selling the annuities to outside investors.  As far as the retiree is concerned, though there is no functional difference between these annuity contracts and loans, EXCEPT the retirees don't get the disclosure and legal protections that consumers are supposed to get in loans.  I think most of these contracts are illegal loans as to the retiree, and I think most of them are illegal securities as to the investors.  Here are some companies that have been identified in this industry.  If you have a problem with one of these, please contact me.  I will be happy to link you up with a NACA-member consumer lawyer in your area.

LumpSum Pension Advance, Pension Funding LLC

Pensions Annuities & Settlements LLC

Pension Income LLC

Cash Flow Investment Partners

DFR Pension Funding

Veterans Benefit Leverage

Voyager Financial Group LLC (Pension4Case/Cash Out My Pension/Buy Your Pension)

First American Finance Corp. and Investing Forward (Termbrokers LLC).

Check out the  SEC alert, entitled “Pension or Settlement Income Streams: What You Should Know before Buying or Selling Them” is available at www.sec.gov/investor/alerts/ib_income_streams.pdf