December 18, 2012

Pension Factoring Alert


Plaintiffs: Diana Snowden and Neil Goldschmidt
Defendants: Voyager Financial Group, LLC; Andrew Gamber; David Woodward and Cliff Sullivan


Plaintiffs Diana Snowden and Neil Goldschmidt (“Plaintiffs”) have filed a two-count complaint against Defendants Voyager Financial Group, LLC, Andrew Gamber, David Woodward and Cliff Sullivan (collectively, “Defendants”) alleging that Defendants, fraudulently and in violation of Oregon securities law, “offered and sold nine (9) Investment Contracts to Plaintiffs consisting of contracts and evidences of debt repayable from payments arising out of U.S. military disability and retirement pensions.”  Plaintiffs allege that “the offer and sale of the Investment Contracts [was] unlawful” because “[t]he Defendants failed to register the offer and sale of the Investment Contracts as securities as required by [Oregon law].”  Further, the complaint alleges that Defendants made “false and fraudulent” representations to Plaintiffs upon which the Plaintiffs relied in deciding to purchase the Investment Contracts.

According to the complaint, between April 2011 and March 2012, Plaintiffs paid $601,599 to Defendants in order to obtain the Investment Contracts “consisting of ... U.S. military disability and retirement pensions.”  In connection with the sale of the Investment Contracts, the complaint states that Defendants made “untrue and misleading statements includ[ing] the following:  (a) [t]hey failed to disclose ... the fact that U.S. military pensions may not be lawfully assigned, anticipated or attached[;] (b) [t]hey failed to disclose ... the fact that the payments owing to the pensioners cannot be lawfully or effectively secured to Plaintiffs[;] (c) [t]hey falsely represented that the sole risk of the investment was the solvency of the U.S. government[; and] (d) [t]hey failed to disclose ... the fact that the assignors may revoke their assignments at any time.” 

According to the allegations, “Defendants represented to Plaintiffs that the payments owing under the Investment Contracts were direct, secured payments from the U.S. government to an escrow account controlled by Plaintiffs.”  Plaintiffs then allege that “[t]he representations of Defendants ... were false and fraudulent in that Defendants knew or were reckless in not knowing that the U.S. government cannot be lawfully bound to make the payments to the escrow account.”  The complaint further states that “[o]n or about October 8, 2012 ... Plaintiffs tendered the Investment Contracts back to Voyager and demanded the return of the consideration paid therefor.  Voyager, however, failed and refused to accept the tender or to refund the consideration.” 

Based on the above allegations, Plaintiffs assert claims for:  (i) violations of Oregon securities law and (ii) fraud.  Plaintiffs seek $601,599 plus interest in damages as well as “a judgment and decree prohibiting Defendants from promoting or offering their Investment Contracts and securities in Oregon...”


Circuit Court for the State of Oregon for the County of Multnomah


December 10, 2012

For additional information, please contact:

Timothy O'Driscoll (215) 988-2855 Timothy.O'


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