Despite what the crack reporting staff at AmLaw Daily has been reporting all day, and unfortunately has been circulating through out the internet via links and cross postings, the Scott Rothstein fraud has absolutely nothing to do with Structured Settlements as erroneously reported by AmLaw Daily.
Even a modicum of reporting and analysis, never mind a call to a structured settlement firm or the NSSTA, would have revealed that this has NOTHING to do with the corrupt sale and " purchase of structured settlements, whereby an individual sells a stake in a large legal settlement for cash." Nothing could be further from the truth and this kind of lazy reporting and analysis will now take weeks of corrective posting, writing and commentary to counter the misperception created by these kinds of posts.
Trust me, we will be doing a long series of podcasts on this starting tomorrow discussing the structured settlement industry response, the response of the factoring business that is also being unfairly and inaccurately tainted, and a review of the despicable " cash for plaintiffs" business that soaks the most vulnerable, uniformed and helpless victims, all with out ANY state or federal regulation oroversite.
No, for those of you who care to know, this story is about the "cash now" industry that has sprung up in the trial lawyer circles where in hedge funds and investment pools, exactly like the one Rothstein was apparently running gather up assets and then go and cut private deals with plaintiffs in law suits to give them up front money right now and in return the "lender/loan shark" goes and collects on the case when it settles.
This is a cess pool of conflict of interests, clients being sold out by their attorneys, rebates and referral fees to the lawyers who send them clients and a totally unregulated shadow business run by the likes of a Rothstein and the attorneys who work with them. Even if he didn't take a dime of client money and this all works out in the end as just one big "misunderstanding", this will bring welcome light to the repulsive act of exploiting desperate plaintiffs in return for huge yields to investors and lots of money to the lawyers charged with protecting their welfare.
Hopefully AmLaw Daily will retract this error at some point and put some real work into exactly what has been going on with these lending pools and litigation cash pushers. Every legal convention and meeting of lawyers has these sales teams circling around them now and perhaps AmLaw Daily should investigate why no one has until now looked into these abusive and questionable dealings before.
Keep watching The Settlement Channel and The Legal Broadcast Network, we will be bringing you the real story from the lawyers who are in the case and can provide insight and information into yet another unfortunate black eye for the legal profession.