Tuesday, February 9, 2010

WHAT WILL THE FUTURE BE??????

Forecasting anything is difficult, but if an indicator of things to come is based on the present direction. It indicates to me that there’s a good possibility that the treatment of investors will get worse. My first example of this is Administration fees. First of all, the basing of the fee as a fixed cost to each investor is unfair in many cases. I have several policies that show this. I have one policy where last year’s annual premium was $16.48, another policy has not had to make any premium payment to date but the 12 investors have to pay the management company $2880.00 per year just to receive the letter, and finally I am a partner on a policy that has 578 investors. Management receives $138,720 for handling that account. Another thing is that the Administration Fees keep changing. At first, they averaged around $170 to $190 per account. Then the receiver combined the Admin Fee with the Premium payment. This made sense to me also, why send out two invoices on the same account. But instead of reducing the Admin fees, they raised them to $240 dollars per account even though they were doing less work. Then they reduced the fees to $180 dollars for investors that had more than 10 accounts, but never could get that straight in their billing. I had to constantly remind them of their rule and now they “fixed” me by raising them back to $240 dollars again for this year. Now in this year’s billing, they have invented a new thing called the “trust fee subsidy”. The new Admin Fee is listed as $300 with a ($60 credit) from the Trust Fee Subsidy Account. From what I understand, the Trust Fee Subsidy Account is funded by proceeds from the sale of fractional interest of investors who have forfeited their investment. I have asked to try and bid on these policies, but was told these fractional interests are bundled and sold to insurance professionals. Remember the days when investors were allowed to acquire forfeited interest by paying defaulting investor’s premium fees? To me, paying the shortfall premiums allowed the remaining investors a chance to offset future premium expenses. Apparently, management also sees the value in this and with their “trust fee subsidy fund” has decided to take it and charge it back to us in fee discounts. Later this week, I have to send in seven premium payments. The amount I have to send is around $25,000. The total amount of premium money collected for these accounts is $1,271,260.00 and is held by management for 90 plus days before it is paid to the insurance companies. If this money is held in an interest bearing money market account at 2.0% this would generate about $6400 dollars income. I would have to assume that all financial enterprises would use interest accounts to hold monies for periods of time, especially when the amounts are so large (like $117.5 million) and for so long (several years). Hopefully, some of my concerns will be yours also and perhaps together we can get some answers.

Thanks for listening,

Larry N. Scartz (703) 494-4181 or larry.scartz@scartz.com

23 comments:

Anonymous said...

Thanks for providing lots of information. It is not surprising if only 3/22 of your parents' were matured, mine(2/2) were not matured at all.
Your parents are lucky to have a son like you. You are obviously very intelligent and dealing with this fiasco calmly and rationally.
Please keep us informed!

Anonymous said...

Yes. Thank you for lots of work. I had 4 since 2003, but never head a word about the case status. So never know if any of mine was "matured" or not.

Anonymous said...

If you do not hear anything about your policies,you should contact with them.
Here is the Contact info
Steven Bouffard (Manager)
Customer Service
Litai Assets LLC
D:954-582-0220 Ext 228
F:954-582-0223
sb@litaiassets.com
customerservice@litaiassets.com

Steve Mead said...

Larry,

If anyone out there needs assistance with the tax aspects of Mutual Benefits please feel free to have them call.

Sincerely,

Steve Mead
165 Services

Anonymous said...

I am totally disappointed as in 1998 I inveted my whole retirement with the crook Leslie C Stipek
I and I have paid well over 2,400 in fees ,All I got back was 13,000
I had a lot of policies in vaticals
and I gather no more is coming:
I hate everything about how this was handled and how long it took
and if some are happy with the out come of it all well good for you
for me,it's a bloddy nighmare ;

David said...

Thanks for the information and all the work you have done!

Anonymous said...

Thanks for the information you provide,it has informed me of things I did not understand,because of you I'm well endow.I hope you continue to give and provide the informations it is helpful to us all.

craigf50 said...

Larry, I am about to hire an Atty. Are you or anyone else interested in joining me?
Craig...Meet you in FL over Easter/Passover.
Craigf50123@yahoo.com

Anonymous said...

I am very concerned about this all.
We don't know if our policy is legal or not, we read something about that on the internet. Can somebody tell me more about that?? And does anybody know about a 30% fee for a non US citizen, it seems to be some kind of a tax fee???

Anonymous said...

I've been paying the premiums on my policies as well as my husband's
and have yet to see any checks. I am about to write it off as idiot investing.

Anonymous said...

Just what I needed, thanks a lot.

Anonymous said...

My father recently passed away and I am trying to help my mother with their investments, I have tried to understand this, and can't believe my father was talked into buying into this SCAM....I

Anonymous said...

My late husband purchased two of these investments and I haven't received a dime. I did however receive a bill today for the 240.00 for administration fees. The other policy was paid in July.

Anonymous said...

While greed gets everyone in financial trouble, I too am a victum of Mutual Benefits, but am on the other side. I sold a policy for pennies on the dollar due to my then diagnosis of AIDS. When my health improved, I called some 15 years later to learn that the contract I signed had a clause that as my life insurance increases so does the pay out for the investor. My policy has doubled due to my pay, but Mutual Benefits will get it all, not just what the original policy stated. So both the investor and the policy get screwed, so dont' just pity those who lost money, I gain nothing from the other side but heart aches...

Anonymous said...

Craigf50

Did you ever hire an attorney? If so, what has transpired?

Carmenza said...

Hello There ,I'm fed up with this ,last year I paid a premium share of 3.700.00 + adm,fees of 300.00 ,this year I have to pay 5.300.00 + same adm Fees ,this is crazy ,i had paid almost 40% of what I invested ,I'm thinking on selling interest in the policy Anyone out there interested? if so contact kcht57@gmail.com
or maybe contact an attorney.suggestions?
Thank you

Philip said...

Can a remaining interest be sold? If so contact pzastrow@yahoo.com

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Shmuel Septimus said...

Hi all,
I've had this investment sell for well over 10 years and I find that the premiums and fees are increasingly higher from year to year. This year they're asking for over $2000 to cover the premiums. This is getting outrageous! I need some work friends his or device would be greatly appreciated. Thank you!

Shmuel Septimus said...

Hi all,
I've had this investment sell for well over 10 years and I find that the premiums and fees are increasingly higher from year to year. This year they're asking for over $2000 to cover the premiums. This is getting outrageous! I need some work friends his or device would be greatly appreciated. Thank you!

Anonymous said...

Hello people,
I sold my policy over 10 years ago. At the time it was a death sentence, but with new medicines I have now been HIV positive for almost 30 years. I am sorry that everyone got scammed by this scheme. My health is pretty good now, since I got my settlement, I finished college, ran marathons, bought my Mom a condo, and waited to die. Fortunately, medicine has kept me alive and but my premiums have skyrocketed, especially when I turned 50. The receiver does call me quarterly and reimburses my premium payment. But it was only recently when watching "American Greed" on TV that I realized that this was a ponzi scheme. It puts all of us in a awkward position. I just wanted to say that if I would have died as scheduled, your "investment" did allow me to do things that I was not able to do at the time.

Anonymous said...

I have policy for $50,000 to sell anyone interested?

Anonymous said...

I too have policy for $50,000 to sell anyone interested? Is this legal?

Is anyone out there?