Investors Suffered $300 Million In Losses After Financial Advisors Across The Country Inappropriately Recommended Customers Invest In This Ponzi Scheme
Future Income Payments, LLC: A Ponzi Scheme
Future Income Payments, LLC represented itself as a structured cash flow investment that purchased pensions at a discount from pensioners and then sold a portion of those pensions as a “pension stream to investors.” Future Income Payments, LLC reportedly promised investors a 6.5% to 8% rate of return. In April 2018, Future Income Payments, LLC ceased business, owing nearly $300 million in unpaid investor payments to over 2,600 individuals. In March 2019, Future Income Payments, LLC and its owner, Scott A. Kohn, were indicted by a Federal Grand Jury alleging a conspiracy to engage in mail and wire fraud. According to the indictment, Future Income Payments, LLC operated a Ponzi scheme.
If you invested in Future Income Payments, LLC and have suffered financial losses, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential evaluation of your account. Iorio Altamirano LLP represents investors nationwide.
Financial Advisor: Private Securities Transactions
Licensed financial advisors must adhere to FINRA rules, which exist to protect investors. One such rule, FINRA Rule 3280, prohibits financial advisors from soliciting customers to participate in any private securities transactions unless the financial advisor provided his firm with the appropriate notice and, if necessary, obtain the firm’s approval. A private securities transaction is defined as any securities transaction outside the regular scope of an associated person’s employment. Brokerage firms often have written policies that prohibit private securities transactions without prior written approval from the firm.
For example, a financial advisor recommends to a customer an investment called Future Income Payments, LLC. However, Future Income Payments, LLC was not an investment offered on the employing brokerage firm’s platform or provided in the regular scope of the firm’s business. The financial advisor also failed to notify his employer correctly and obtain the firm’s approval. This type of transaction would be considered a “private securities transaction,” as defined by FINRA Rule 3280, and would have been inappropriate.
Financial Advisors Across the Country Disciplined for Inappropriately Selling Future Income Payments, LLC:
Unfortunately, the example above allegedly occurred all over the country. According to public records, FINRA has suspended or barred from the securities industry at least eight different financial advisors across the country for inappropriately soliciting investors to purchase securities of Future Income Payments, LLC:
|Financial Advisor||Employing Firm||Location||FINRA Discipline|
|Joe M. Albright||Farmers Financial Solutions, LLC||Odessa, TX||6/8/2020
|Dee Dee Brooks||Signator Investors, Inc.||Huntington Beach, CA||6/9/2020
|Micha W. Patterson||MML Investors Services, LLC||Centerville, UT||6/23/2020
|Neemit M. Shah||MML Investors Services, LLC||Glen Allen, VA||10/6/2020
|Lonna R. Dehn Ristvedt||National Planning Corporation||Fargo, ND||10/13/2020
|Troy R. Baily||Sagepoint Financial, Inc.||Omaha, NE||10/19/2020
|John A. Westbrook||Center Street Securities, Inc.||Montgomery, AL||11/10/2020
|David T. Phillips||ProEquities, Inc.||Gilbert, AZ||11/18/2020
If you have lost money with any of these financial advisors, contact investment loss lawyers at Iorio Altamirano LLP for a free and confidential evaluation of your account.
Brokerage Firms: Failure to Supervise
A brokerage firm has a duty to supervise its brokers. If a stockbroker violates the law or acts negligently, and the customer suffers losses as a result, the firm may be responsible for failing to supervise its brokers.
Future Income Payments, LLC: Related Entities
Reportedly, the following entities are related to Future Income Payments, Inc:
- Cash Flow Investment Partners, LLC;
- Pension Advance, LLC;
- BuySell Annuity, Inc.;
- Cash Flow Investment East, LLC;
- Cash Flow Investment Partners Mideast, LLC;
- FIP, LLC;
- Lumpsum Pension Advance Atlantic, LLC;
- Lumpsum Pension Advance Southeast, LLC;
- Lumpsum Settlement West, LLC;
- PAS California, LLC;
- PAS Great Lakes, LLC;
- PAS Northeast LLC;
- PAS Northwest, LLC;
- PAS Southwest, LLC;
- Pension Advance LLC;
- Pension Advance Carolinas, LLC;
- Pension Advance Midwest, LLC; and
- Pension Loans South, LLC.
Financially desperate military veterans and innocent investors were the targets of this fraud. If you or a loved one have suffered losses from investments in any of these entities, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential evaluation.
How to Recover Losses:
Iorio Altamirano LLP is a boutique law firm located in the heart of New York City. Iorio Altamirano LLP represents investors nationwide who have suffered investment losses due to securities fraud.
If you have lost money because you invested in Future Income Payments, LLC, contact securities arbitration lawyer August Iorio of Iorio Altamirano LLP. August Iorio can be reached at email@example.com or toll-free at (855) 430-4010 for a free and confidential evaluation of your account.
Iorio Altamirano LLP is a bilingual law firm, fluent in both English and Spanish.