Blatant, outrageous, intentional scams.
Sept. 14 (Bloomberg) — The U.S. Department of Veterans Affairs failed to inform 6 million soldiers and their families of an agreement enabling Prudential Financial Inc. to withhold lump-sum payments of life insurance benefits for survivors of fallen service members, according to records made public through a Freedom of Information request.
Oh, it’s much worse than it appears.
That the VA allowed Prudential to issue retained-asset accounts for 10 years while the contract required lump-sum payouts is “more evidence that the VA was asleep at the wheel for a decade,” says Sullivan, who was a project manager and analyst at the VA from 2000 to 2006.
It gets better. In 2009, under President Obama, they retroactively permitted this:
The Sept. 1, 2009, amendment to Prudential’s contract with the VA ratified another unpublicized deal that had been struck between the insurer and the government 10 years earlier — one that was never put into writing, Bloomberg Markets magazine reports in its November issue. This verbal agreement in 1999 provoked concern among top insurance officials of the agency, the documents released in the FOIA request show.
You lying sack of shit (the government.)
The Statute of Frauds requires that all contracts for which performance is contemplated to exceed one year be IN WRITING.
I bet our government is hoping that nobody out there had a Contract Law class in school. Guess what – some of us did.
Prudential is earning about 4.2% on this money, but paying only 0.5% to the survivors in their accounts. They are and have been pocketing the rest.
Look folks, this isn’t a “mere” contractual error or anything of the sort. It’s an intentional decision that was made by Prudential (along with other insurers) to send these “retained asset” checkbooks when an insured dies.
Now if you opt for this when you buy insurance, so be it.
BUT THE VA CONTRACT SPECIFICALLY SAID OTHERWISE!
Why do we permit this crap folks?
How many times do you have to get ripped off? This is “just a few dollars” (per month) per person that had a man or woman killed in action. “It’s not a lot of money” – I hear the claims now.
Does it matter how much I steal? I think not.
We have allowed the banks to rip us off for literal hundreds of billions through hinky deals of all sorts. Birmingham Alabama may have their residents see five hundred dollar monthly sewer bills as a direct consequence of the scams that the banks participated in there – and for which some of their officials went to prison.
But not one bank official nor one BANK OR INSURANCE COMPANY ITSELF has been indicted.
Worse, the people who got hosed by these deals continue to have to pay! There has been NO recompense, NO voided contracts, NO clawbacks.
Not in the hinky derivatives related to Jefferson County Alabama.
Not in the hinky derivatives that blew the housing bubble.
And now, VA, having sat on this issue for nearly a decade, in 2009, under President Obama, has refused to do anything about the fact that Prudential kept millions of dollars via these “retained asset” earnings that they had no right to retain in the first place under their contract.
If I steal money from you, that’s a crime and I can be thrown in prison for it.
But when someone structures some hinky deal that has the exact same impact on your life, so long as it’s a bank or insurance company, at worst they get fined, and a lot of the time there’s some hush-hush deal put together behind the door to “fix it” so nobody will find out.
WHY DO WE PUT UP WITH THIS CRAP FROM THE CORPORATIONS IN THIS NATION AND OUR GOVERNMENT?
THE PEOPLE WHO DO THIS CRAP NEED TO GO TO PRISON AND WE THE PEOPLE NEED TO START INSISTING THAT IT HAPPEN!