In 2015, California's Attorney Generalsent FIP a cease-and-desist order, instructing the firm to stopoperating in the state because its services amounted to predatorylending, and the firm was not licensed through state bankingregulators. (Photo: Shutterstock)

Five lawsuits against individuals serving as middlemen marketershave been filed across the country on behalf of investors instructured cash flow arrangements originated by Future IncomePayments LLC (FIP) a Las Vegas-based firm founded by a convictedfelon.

The five lawsuits are the first wave in what attorneys for theplaintiffs describe as a nation-wide predatory scheme that couldresult in losses of up to $100 million for investors and implicateas many as 368 brokers, advisors, and insurance agents that soldthe investments.

'Complicit network of middlemen'

“This massive scam could not have happened without a complicitnetwork of middlemen,” said Joseph Peiffer, managing shareholder atPeiffer Wolf Carr & Kane, the law firm representing theplaintiffs, in a press call.

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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.