Like a rolling stone
Disgraced former Oregon Gov. Neil "Pants" Goldschmidt and his wife are claiming in court that they've been swindled. Allegedly they're victims of securities fraud. And hey, who would know better about fraud?
Even more pathetic is what they say they were investing in. Willy Week cuts to the heart of the matter:
Goldschmidt and his wife invested in products that convert the pensions and disability payments of veterans into commodities. Just as hard-up senior citizens have traded their life insurance policies for lump-sum cash payouts, military veterans have sold their future pension and disability payments for cash. Investment companies such as Voyager buy those future payments at a discount, repackage them and create attractive returns for investors, as the Wall Street Journal has reported.
Well, we all shine on...
| Posted at 8:47 AM | Permalink |
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Comments (11)
Guess it was only a matter of time before Goldschmidt moved on to war crimes.
Posted by Mojo | December 12, 2012 8:58 AM
This is like those viatical policies - You buy a dying man's life insurance benefits for cash now.
Neil really should be delaing in the hard money business to the City of Portland. He'd make a great loan shark and has the moral composure for it.
Posted by Steve | December 12, 2012 9:11 AM
In 2009 Congressional hearing, Illinois insurance director Mike McRaith said such investments are "predatory, abusive practices
Well, they found the perfect investor.
Posted by Dave J. | December 12, 2012 9:16 AM
In 2009 Congressional hearing, Illinois insurance director Mike McRaith said such investments are "predatory, abusive practices
That may true in other places, but here in Oregon we do things "differently".
Posted by Mr. Grumpy | December 12, 2012 9:19 AM
Curious thing, despite Goldschmidt's history of lining his own pockets, he gets less than $35k a year from PERS.
Mind you ... he does own a winery ...
And he did try to buy Portland's electric monopoly ...
Posted by Garage Wine | December 12, 2012 9:27 AM
Couldn't happen to a nicer guy.
Never understood why the wealthy don't just buy plain vanilla mutual funds or ETFs...It's always oil wells, truck stops, retirement homes, futures, and alternative investments.
Posted by Jennifer | December 12, 2012 9:30 AM
Never understood why the wealthy don't just buy plain vanilla mutual funds or ETFs
What? And get 3% returns like the commoners?
Posted by Dave J. | December 12, 2012 9:33 AM
"despite Goldschmidt's history of lining his own pockets, he gets less than $35k a year from PERS."
Look up the ne'er-do-well brother Steve - He made out a lot better.
Greasiness, like oil on water, spreads.
Posted by Steve | December 12, 2012 10:20 AM
Goldschmidt sold his winery .
Posted by lurker | December 12, 2012 11:05 AM
Gee, why don't I feel bad for him?
Posted by dg | December 12, 2012 11:43 AM
That WSJ article says, "The biggest risk for investors is that pension recipients renege on their promises to turn over monthly checks to the investor."
But what if the retiree dies or has a lawsuit, divorce or any court judgement against him half way thru an eight year contract?
And I'm SURE THESE SECURITIES were registered with the SEC & State Securities regulators, right?
Sounds like an "investment" a truck driver that just won the lottery might make. Nah... a truck driver would be more prudent.
Posted by ltjd | December 12, 2012 4:16 PM