'Bad deal' lump pension payouts for veterans draw new scrutiny
Daryl Henry's reward for 20 years of service in the Navy was a $1,083 monthly pension. But more than half of it went to a private California company -- Retired Military Financial Services -- after Henry was duped into a complex financial agreement, the Maryland resident alleged in a class-action lawsuit.
Struggling with bills, Henry says he answered an ad in the Navy Times and traded 96 months of future pension checks -- totaling $103,000 -- for a lump sum payment of $42,131. He then spent years depositing his government pension checks into a special account so Retired Military Financial Services could take its share of the taxpayer-funded payments and pay private investors with it.
http://redtape.msnbc.msn.com/_news/2012/06/15/12227169-bad-deal-lump-pension-payouts-for-veterans-draw-new-scrutiny?lite
