In 2015, California's Attorney General sent FIP a cease-and-desist order, instructing the firm to stop operating in the state because its services amounted to predatory lending, and the firm was not licensed through state banking regulators. (Photo: Shutterstock)
Five lawsuits against individuals serving as middlemen marketers have been filed across the country on behalf of investors in structured cash flow arrangements originated by Future Income Payments LLC (FIP) a Las Vegas-based firm founded by a convicted felon.
The five lawsuits are the first wave in what attorneys for the plaintiffs describe as a nation-wide predatory scheme that could result in losses of up to $100 million for investors and implicate as many as 368 brokers, advisors, and insurance agents that sold the investments.
'Complicit network of middlemen'
“This massive scam could not have happened without a complicit network of middlemen,” said Joseph Peiffer, managing shareholder at Peiffer Wolf Carr & Kane, the law firm representing the plaintiffs, in a press call.
“These professionals should have known better,” he added. “Investors thought they were putting money in a conservative program that had been vetted by financial professionals. It was sold everywhere.”
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
