Future Income Payments LLC (also known as FIP LLC) is a financial services company that was previously in Irvine, California. In 2015, FIP LLC relocated to Henderson, Nevada. The reason for the move: California state regulators issued a ‘cease and desist’ letter to the company.
If you are an investor/consumer who has worked with Future Income Payments LLC, you may have come across the company in a television commercial. The company ran nationwide commercials advertising its business as a pension cash flow originator. What does that mean? Essentially, the company offered ‘pension advances’.
Unfortunately, there is now strong evidence to suggest that Future Income Payments LLC is a fraud. On July 23rd, 2018, The Wall Street Journal reported that FIP LLC has been accused of illegitimately taking in more than $100 million from investors. Here, our investment fraud attorneys provide an overview of the allegations against this company.
25 States Have Taken Action Against Future Income Payments LLC
According to the reporting from The Wall Street Journal, at least 25 different U.S. states have opened up investigations or have already taken enforcement action against Future Income Payments (FIP) LLC. State regulators from around the country allege that this company is taking advantage of investors and consumers using unlawful and deceptive sales practices. Further, unbeknownst to investors, the company’s owner Scott Kohn is a convicted felon and he is alleged to be operating the entire business out of a mailbox in Nevada.
Allegations of Fraudulent and Illegal Practices
Upon reviewing the conduct of Future Income Payments LLC, state regulators have raised a common objection: the company’s entire business model is based on the core deception that its products are ‘sales’ and not ‘loans’. In reality, regulators believe that this company is engaging in a complex form of elder financial fraud, targeting the pension benefits and retirement benefits of vulnerable people and offering them loans with outrageous and wholly unfair terms.
The pensioners are sold a different (false) story. They are made to believe that they are buyers, not borrowers. The alleged fraud has resulted in vulnerable people losing a tremendous amount of money. Victims, largely pensioners and retirees, are deceived into ‘purchasing’ complex financial products. However, when all of the lies are stripped away, it turns out that these so-called investments are simply loans with horrendous terms. As an example, The Wall Street Journal cited a case where a Gulf War war veteran was offered $2,700 and had to pay back $450 per month for a period of five years ($27,000).
Victims Need Immediate Guidance from an Investment Fraud Lawyer
At Sonn Law Group, we have helped countless investors recover full and fair compensation for their illegitimate investment losses. If you or a family member lost money with Future Income Payments (FIP) LLC, you need to take immediate action.
To arrange a free, fully confidential review of your investor losses claim, please do not hesitate to contact our legal team today. We handle all investment fraud claims on a contingency fee basis — that means we only get paid if we win your case.
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