Future Income Payment, LLC Losses?

FORT LAUDERDALE, Fla. - Aug. 23, 2018 - PRLog -- Soreide Law Group is investigating claims on behalf of investors who have lost money from Future Income Payments, LLC – a company based in Irvine California that has held itself out as being an industry leader and innovator in purchasing and selling secondary market pension cash flows (also known as structured cash flows).

Apparently, the company has been in the business of buying pensions from individuals in return for a lump payment. Those types of arrangements, referred to as pension advances, have been advertised heavily to federal workers and members of the military. They tend to attract those individuals who need cash and may not qualify based on other options such as personal loans and credit cards. Pension advances have generated negative attention, and have been referred to as shady schemes.

Future Income Payments, LLC has been subject of investigations from several states, including Pennsylvania, Washington, Massachusetts, New York, Colorado and Minnesota, where those have argued that loans have been mischaracterized as pension sales. In one case, the State of New York imposed a $500,000 penalty against Future Income Payments, ordered it to cease and desist its operations, and required that the company pay back customers interest that had been charged on transactions. The State of New York concluded that the company was not lawfully operating in the state and had charged customers interest rates as high as 130%.

In another case, Future Income Payments was subject of a cease and desist order issued by the State of California. Officials in the state accused Future Income Payments to have operated in the state without licensure. Contrary to Future Income Payments' position that the company had entered into sales agreements, officials determined that the company was actually making loans. Future Income Payments' business practices have been described as predatory lending which could exploit veterans and seniors.

Typically, investments in Future Income Payments, which are often classified as structured cash flows, have been arranged by investors going through brokerage firms and investment advisories. The investor funds a loan to the seller of the pension in return for the assignment of right to collect the seller's pension payments. These types of products contain risks to the investor such as the investor being unable to collect on the pension. For example, Scott Kohn, who is the Chief Executive Officer of Future Income Payments, has complied with cease and desist orders issued by multiple states, increasing the risk of the company failing to collect for investors. Moreover, these products can contain high fees and commissions, and have raised concerns by regulators about the lack of disclosures to investors.

Investors who have incurred losses from Future Income Payments are encouraged to contact Soreide Law Group at (888) 760-6552 for a free consultation. Our firm has recovered millions of dollars for investors who have suffered losses due to broker and brokerage firm misconduct. We represent clients on a contingency fee basis and advance all costs.  https://www.securitieslawyer.com