Litigation

The sarcasm drips from Lars Toomre's June 8, 2009 post about the JG Wentworth bankruptcy filing.

He says:

"Many individuals and firms have long avoided the structured settlement sector of the financial markets, particularly on the purchase side of the transactions. Most sellers of structured settlements are what one would call "retail" customers. Frequently, these customers are less sophisticated in one way or another. Often the customer is at least middle-aged, if not older; is in a diminished physical state; and has encountered some type of financial stress that is leading to the consideration of the sale of the structured settlement annuity contract".

"In such a condition, it often is not clear to a seller whether a proposed transaction price is fair or not, especially when potentially pressured by an aggressive broker who promises to get the seller cash now. As with all retail-oriented businesses, the "downsides" (risks) of entering into the transaction are rarely well-explained. Further the total fees to be paid to the broker and/or principal are often concealed or less than completely disclosed"

Apparently Toomre Capital Markets "had the opportunity to work with J.G. Wentworth some number years ago as one of their providers of "professional services." After performing some due diligence, that opportunity was declined. One might fairly say that TCM is not surprised to learn of this bankruptcy filing".

The sharp criticism of JG Wentworth is notable because it comes from outside the structured settlement industry.

Toomre is Managing Director at Toomre Capital Markets, LLC a New York City area financial engineering consultancy that applies computational finance, risk management, structured products and advanced technology to help businesses optimize Economic Value Added. According to his Linked In profile he was formerly a concultants at G2 Systems, a Director of Capital Markets at Coopers & Lybrand, LLP and a Senior VP at Lehman.

Read Lars Toomre's blast of Patrick Hindert's "Structured Settlement Thought Leaders".....NOT.