An investigation by the Washington Post shows an alleged flaw in the system that allows companies to make millions of dollars off of injured individuals. The story begins with Terrence Taylor, who had suffered burns and disfigurement as a young boy due to a defective electric heater. A settlement with the liable company in 1989 would pay him $31.5 million over his lifetime.
In 2014, Taylor was broke and evicted from his home after failing to pay rent for three months. It turns out Taylor sold the entire amount owed to him through 2044 in multiple deals that were approved by Virginia courts. The investigation found Taylor’s documents including court and bank records, showing that he had sold $11 million of his structured settlement for 16 cents on the dollar, resulting in a payout of roughly $1.4 million.
The investigation claims that Virginia’s failure to monitor and regulate an industry making tens of millions of dollars off of injured individuals is to blame for Taylor losing income that should have lasted over 30 years in deals approved at a courthouse in which he never stepped foot. Taylor has sued the companies, including Structured Asset Funding, with which he did six deals.
Industry advocates warn that these deals often help provide desperate individuals with the money the need immediately, but they risk exchanging income that is supposed to last a lifetime. The investigation by the Washington Post discovered court documents and interviews in which Taylor claimed he was coached up by the purchasing companies who would come up with “false” reasons for needing the money.
At Levinson Axelrod, we believe in protecting the rights of the injured. Individuals who suffer from serious injuries deserve someone on their side dedicated to helping them achieve their goals of obtaining compensation; not costing them more money. Allow our firm to help you through your difficult time and keep you understanding of your rights if you suspect any fraudulent behavior. Call our firm today.