Future Income Payments, LLC (FIP), is the latest incarnation of Structured Cash Flows related to pensions. As far back as 2103, Vernon Litigation Group represented Pension related Structured Cash Flow investors and warned the public regarding investments built on Structured Cash Flows.
PENSION RELATED STRUCTURED CASH FLOW BASICS
The basic idea of Pension related Structured Cash Flows is this: An investor pays a lump sum in exchange for the right to collect somebody else’s pension, disability plan, or benefit program. Eventually, if the person lives long enough, you will receive more money from his or her pension than you paid upfront. Unfortunately, for many investors, either the pensioner passes away before the investor can realize a profit or certain federal laws, such as the Employee Retirement Income Security Act of 1974 (ERISA) disqualifies the investor from receiving the benefits from the upfront, lump-sum payment. As Vernon Litigation Group has warned in years past, these Pension related viatical products are also subject to abusive or fraudulent practices by the promotors. The result is a lack of adequate disclosure to the investor about the fees and risks associated with these investments as well as banking and usury violations by the promotors in dealing with the original pension recipients.
FIP’s Most Recent Structured Cash Flow Appears Abusive
FIP’s most recent take on the Structured Cash Flow appears to be especially abusive. In a recent lawsuit filed by the Attorney General of Virginia, FIP was accused of mischaracterizing the transactions as “sales.” According to the Attorney General’s complaint, in one example, FIP’s “sale” was actually a closed-end installment loan from FIP to the original owner of the pension (who was a disabled military veteran) of approximately $5,500 (minus a $300 origination fee). FIP then collected sixty monthly payments from the veteran in the amount of $682.00 per month. In other words, the veteran agreed to repay FIP $35,420 in interest over the course of five years in return for a loan of $5,500 (less the $300 “set-up fee”). Worse still, FIP allegedly required the veteran (along with the other pensioners) to report the loans as “sales” on their taxes, when according to the complaint, the transactions were actually loans.
Do Not Sign Any Release From FIP Contact A Lawyer Instead
As part of the current and expanding investigation of all parties who may be liable to investors, we are urging potential clients not to sign any type of release offered by anyone associated with FIP or the sale of FIP or any due diligence related to FIP.
Decades Of Experience Pursuing Claims
The attorneys at Vernon Litigation Group have decades of experience pursuing claims on behalf of investors nationwide in both state and federal court as well as arbitration. With respect to FIP related claims, Vernon Litigation Group’s investigation encompasses not only FIP’s actions, but the negligence, lack of due diligence, and breaches of fiduciary duty of those individuals and entities who effectively enabled FIP to prey on income-oriented investors seeking safe and steady income.
Contact Us For A Consultation With A Securities Attorney
Vernon Litigation Group
Phone: (239) 319-4434