July 2018 UPDATE
Investors in Future Income Payments LLC (FIP) who made their investment upon the recommendation of a registered stockbroker, a registered investment advisor, accountant or a licensed insurance agent may be able to recover damages for their losses.
While FIP touted itself as “the industry leader and an innovator in buying and selling secondary market pension cash flows….’ numerous officials from various states have alleged that FIP is actually issuing loans which are disguised as sales and charging exorbitant and sometime usurious rates on interest on the loans.
Securities regulators in a number of states (including California, Colorado, Indiana, Iowa, New York, North Carolina, Massachusetts, Pennsylvania and Washington) have issued cease and desist orders curtailing FIP’s practices in those states.
New York regulators shut FIP down in that state and required them to pay back any interest charged plus a $500,000 fine for operating illegally and charging interest at rates as high as 130%.
In May 2018 The Pennsylvania Department of Banking and Securities announced reaching an agreement with FIP (formerly Pensions, Annuities and Settlements, LLC) and owner Scott A. Kohn to provide restitution and relief to over 300 Pennsylvania resident victims. Link to the agency press release.
Regulatory investigations and actions are pending in another 15 states.
Veterans Targeted -$60K for a $20K Advance
According to recent press, Mr. Wright, a Vietnam Veteran found FIP’s website online and applied for an advance of $20,000 on his military pension. He signed the paper work from FIP, received the advance and months later did he realize that he had agreed to pay FIP $500 a month from his construction pension for ten years. He would be paying $60,000 back for the $20,000 advance.
“This company preys upon vulnerable people who are desperate for money”, according to Iowa Attorney General Tom Miller. “For a few thousand dollars in cash upfront, you’re forced to sign over tens of thousands of dollars from your future pension income. That’s what we call predatory lending. ”
Regulators are also targeting an affiliate , Pensions Annuities and Settlements, which is owned by Scott Kohn, the owner of FIP .
Investors in FIP have reported that monthly distributions have been reduced and in most cases, completely suspended.
If you have questions about an investment you made in Future Income Payments LLC, call for a no charge consultation with an experienced securities attorney to learn how you may be able to recover your losses.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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