In response to guilty pleas for fraud and embezzlement totaling millions of dollars by The Pension Company’s Joe Gargan this year and Ringler & Associates’ Michael Woodyard in 2017, Chronovo, Inc. has launched its Direct Pay process for the remittance of structured settlement premiums.
Effective immediately, Chronovo will no longer handle premium remittances for its clients. Instead, Direct Pay routes premiums directly to the life insurance company for processing. This process will substantially reduce the opportunity for fraud while also expediting the receipt of premiums, benefiting all parties.
Since our founding, Chronovo has innovated best-practice security protocols. We have never allowed individual broker bank accounts or broker access to its accounts in any way that could contribute to fraudulent activities. In fact, we are proud to have always leveraged our unique business model, integrated technology and sound accounting controls to safeguard all of our transactions. We believe that removing the broker from handling premiums further enhances overall payment security.
Chronovo is leading the industry with its Direct Pay process. “While we await what we believe will be practical, robust recommendations from the National Trade Associations’ (NSSTA) Working Group created this June, we have sharpened our pencils with all our life company partners to respond more immediately,” notes Ken Paradis, Chronovo’s CEO.
Chronovo hopes the entire industry will adopt its approach and that clients will require it as standard practice by all structured settlement broker partners. “Our industry has fiduciary responsibility for over $6 billion in premium annually. Trust is our duty as well as our collective currency. We must all do everything possible to protect client, claimant and carrier funds,” adds Paradis. Direct Pay ensures the highest standards of protection.
