Future Income Payments LLC – Securities Fraud Investigation

FIP LLC – Future Income Payments – Recover your Losses

Are you concerned about your investment in Future Income Payments LLC (aka FIP LLC)? If so, the securities attorneys at The White Law Group may be able to help you recover your losses.

According to their website, FIP, LLC is America’s largest pension cash flow originator. The company claims to be “the industry leader and an innovator in buying and selling secondary market pension cash flows, often referred to as Structured Cash Flows.”

Consumer lending regulators from New York, Massachusetts, Iowa, Washington, North Carolina, Colorado, Pennsylvania, and Minnesota are reportedly in agreement that FIP’s pension sales are actually loans.

In 2015, Washington State entered a cease-and-desist order against the firm.

In 2016, the state of New York  shut down FIP for fraudulent and illegal practices, according to Forbes.com. New York ordered FIP to cease operations and pay back any interest charged, plus a $500,000 penalty, for allegedly operating illegally in the state and charging customers up to 130% interest.

According to an article in the LA Times in March 2017, Future Income Payments LLC was based in Irvine until state officials issued a cease-and-desist order , charging that the company was issuing loans without a license and disguising it as “sales agreements.”

According to Nevada state records, Future Income Payments opened new operations in the city of Henderson, outside of Las Vegas, just a couple of months after California officials shut them down.

What are Structured Cash Flows?

Structured Cash Flows often target senior citizens with promises of a safe income providing investment.

The investor pays a lump sum in exchange for an assignment of the right to collect payments due to the seller under a pension, disability plan or other employee or government benefit program.

Ideally, the investor hopes the seller has a long life that will keep the payments coming in, the seller gets quick cash and the middleman gets a fee.  What the investor may not realize is that most of the pension plans that are used for structured cash flows are subject to the Employee Retirement Income Security Act of 1974 (ERISA), the federal law that sets minimum standards for pension plans offered by private employers.

The ERISA law requires that employee pension plans provide that benefits may not be assigned.  In most cases, military pensions and veteran’s benefits cannot be assigned under federal law.

Often, pensioners and veterans are collecting the lump sum and then continuing to collect the benefits, claiming that the agreement with the investor is invalid because it violates federal law.  The middleman still gets the fee up front, so the only one who loses is the investor.

Structured Cash Flows are risky and complex investments. They typically aren’t registered with the SEC and they are illiquid, meaning they may be difficult to sell.

Free Consultation with a Securities Attorney

The White Law Group is investigating potential claims against the sales agents that sold Future Income Payments to investors.

If you have lost money investing in Future Income Payments, please contact the securities attorneys at The White Law Group at (888)637-5510 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.

For more information on The White Law Group, visit www.WhiteSecuritiesLaw.com.