Did Your Broker Recommend Future Income Payments (FIP)?

LELAND BLAIR WHITING (BLAIR WHITING) CRD#: 465663 formerly with HORNOR, TOWNSEND & KENT, INC. of SALT LAKE CITY, UTAH, was one of dozens of financial advisors, stockbrokers, financial planners and insurance agents who are being named in a lawsuit as part of an alleged investment fraud that allegedly cost more than 1,000 investors, many retirees, at least $100 million. These losses occurred when approximately 370 advisors nationwide offered these products by the firm Future Income Payments (FIP), which promised an income stream based on the repackaging of income from pension plans.
There are now many lawsuits, targeting the financial intermediaries who sold these products, claiming they were negligent and breached their fiduciary duty and contracts.  Allegedly, these financial intermediaries received upfront commissions between 6% and 10%.
According to the lawsuits filed, this alleged scheme operated on two levels. Future Income Payments offered pensioners upfront, lump-sum payments in return for a portion of their monthly pension payments over a specific term, often three to five years.
Future Income Payments allegedly used these pension streams to fund the cash flows which were sold to investors. Investors then paid a lump sum to FIP in order to receive a monthly income stream for around 5 to 10 years, and were promised returns in the range of 6%-8%. Also, some investors were urged to fund premium payments for indexed universal life insurance policies with the income from the structured cash flows. Because FIP stopped making payments to investors in April 2018, many of these investors will lapse their policies. Many state regulators found the upfront payments to pensioners to be unlawful loans that charged an interest rate of more than 100% in some cases.
Future Income Payments (FIP) was run by Scott Kohn, a convicted felon who plead guilty in 2006 to three felony offenses which were related to trafficking in counterfeit goods. He was sentenced to 15 months in federal prison. However, he is now believed to be in the Philippines. Kohn formed Pensions, Annuities, and Settlements in 2011, and changed the name to Future Income Payments in 2014.
According to FINRA’s BrokerCheck, LELAND BLAIR WHITING (BLAIR WHITING), has 43 years of experience in the securities industry and was listed with 8 firms, the two most recent listed below:
04/08/2011 - 03/17/2016  HORNOR, TOWNSEND & KENT, INC. - SALT LAKE CITY, UT
01/10/2000 - 03/31/2011  NFP ADVISOR SERVICES - SALT LAKE CITY, UT
If you experienced losses due to the actions or recommendations in Future Income Payments by Blair Whiting, formerly of Hornor, Townsend & Kent of Salt Lake City, UT, or any of the dozens of financial advisors, brokers, insurance agents, etc. selling this product, contact Soreide Law Group and speak to an experienced securities lawyer regarding the possible recovery of your investment losses through a FINRA arbitration at:  888-760-6552.
Soreide Law Group operates on a contingency fee basis and represents clients nationwide.