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According to FIP’s website, they claim to be “the industry leader and an innovator in buying and selling secondary market pension cash flows, often referred to as Structured Cash Flows.” However, state officials in multiple states have issued cease and desist orders, accusing FIP of issuing loans without a license and disguising them in “sales agreements.” Now, multiple state regulators have agreed that FIP’s pension sales are actually loans.

The state of New York shut down FIP for “fraudulent and illegal practices.” Additionally, New York fined FIP for $500,000, ordered FIP to cease operations and repay collected interest charges for allegedly “operating illegally in the state” and charging customers up to 183% interest. Additionally, since being shut down in California, Future Income Payments (FIP, LLC) now operates out of Nevada.

Peiffer Wolf Carr Kane & Conway is currently investigating claims for anyone who has invested in Future Income Payments (FIP, LLC). If you or someone you know invested in a Structured Cash Flow like Future Income Payments, Contact Us Today by calling 585-310-5140 or by filling out an online Contact Form for a FREE Consultation. Concerns about possible broker misconduct and investment fraud are serious, and we are committed to fighting on behalf of investors.

Lawsuits Mount Against FIP for Illegal High-Interest Loan Scheme

Embattled Future Income Payments, LLC continues to be sued for an illegal high-interest loan scheme that targeted the pensions of retired veterans and public servants.

Future Income Payments (“FIP”) targeted pensioners — often elderly veterans with military pensions and public servants with pensions — with illegal loans disguised as “sales” that could provide purchasers with a quick lump sum of cash, according to one lawsuit.

In most cases, pensioners thought they were making a sale of a portion of their pension, which is an asset, in a one-time transaction. As it turned out, it was a loan against the pension with payback “interest rates that were sky high,” said Michael Kelly, spokesman for the Virginia Office of the Attorney General.

which far exceeds the applicable 12 percent annual interest cap mandated by State law, according to one complaint. Thus, it is alleged that FIP engaged in lending practices that violated State Consumer Protection Acts.

“These companies and their owner took advantage of [consumers] who earned their pensions through years of dedication to our nation’s armed forces and as civil servants,” one Attorney General said in a statement. “We’re going to do everything we can to get veterans and other retirees their money back, and to wipe out the debt remaining on any illegal loans.”

“There was No Guarantee Purchaser would Receive All Payments” – FIP’s CEO

According to Future Income Payments (“FIP”) CEO, Scott Kohn, “FIP is in the process of agreeing to cease and desist orders or has already entered cease and desist orders in the States listed below. The terms of these settlements place a ceiling on the amount FIP can collect.”

States/Jurisdictions Where FIP Entered into Cease and Desist Orders

States/Jurisdictions with Pending Agency Action or Investigation

“As a reminder, Purchaser understood and acknowledged that there were multiple risks associated with the purchase of the Purchased Asset. These risks included, FIP being unable to continue collections, breach, bankruptcy, obligator failure, prohibition of law, characterization of sale transactions as loans. There was no guarantee Purchaser would receive all payments,” Kohn said.