Investors in Future Income Payments LLC (FIP) who made their investment upon the recommendation of a registered stockbroker may be able to recover damages.
While FIP tout’s itself as “the industry leader and an innovator in buying and selling secondary market pension cash flows….’ numerous officials from various states allege that FIP is actually issuing loans which are disguised as sales.
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. Investigations and actions are pending in another 15 states.
EXAMPLE FROM RECENT PRESS
Mr. Wright, a Vietnam Veteran found FIP’s website online and applied for an advance of $20,000 on his pension. He signed the paper work from FIP and only months later did he realize that he had agreed to five up $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 of Pensions Annuities and Settlements, which is owned by Scott Kohn, who also owns FIP .
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%.
Investors in FIP have reported that monthly distributions have be reduced and in some cases, suspended, which is likely a result of the reduction of income FIP is allowed to collect from pensioners.
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.
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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