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Lee Jundanian and Joel and Phil Nadel recognized the lottery market at approximately the same time although independent of each other. Jundanian examined it from a legal perspective, and the Nadels took on the state of California to open up the market.
Lee Jundanian was practicing law in New York City in June of 1989 when he read an article about an investor who had purchased a lottery winning as a retirement fund.
Like most truly successful visionaries, Jundanian researched lottery law, going as far as to discuss the issue with the lottery boards of all states that hold lotteries. He discovered the market was a viable one, although the laws were nebulous and vague at that time. Several states since then have passed laws or regulations that freely permit purchases of lottery proceeds to be sold. Even in states where such permission is not apparent, a careful analysis of the laws show that purchases can be made.
Jundanian launched his lottery buying business, now Stone Street Capital, in 1990, using his legal background to grow what is now a thriving business. Like Lee Jundanian, Joel Nadel saw the value of the secondary lottery market and, with his partner and son, Phil, began purchasing lottery winnings in 1990. Nadel was also aware of the legal complexities and, in some states, the nonassignability of lottery winnings.
The Nadels set out to change the law and open up the lottery market. They targeted California, believing the unofficial but valid principle that if you can do it in California, you can do it anywhere.
The Nadels sued the state of California, seeking to offset its laws preventing the assignability of lottery winnings. Phil Nadel said the lawsuits were lengthy and costly, but the company won and changed the secondary lottery market forever.
Lee Jundanian pioneered the lottery market by discovering it, researching its viability, and developing the legal documents needed to make a lottery purchase valid. The Nadels pioneered the lottery market by recognizing it and taking on states where lottery winnings were nonassignable by suing California and getting the laws changed there.
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