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March 27, 2019 AGO: Joy Patterson 334-242-7491, Mike Lewis 334-353-2199
ASC: Dan Lord 334-353-4858
ASBD: Elizabeth Bressler 334-242-3452

Alabama Attorney General’s Office, Banking Department,
Securities Commission Sue Future Income Payments LLC for Activities
Related to the Purported Purchase and Sale of Retirees’ Pensions
(MONTGOMERY)–Attorney General Steve Marshall, Superintendent of the Alabama State
Banking Department Michael E. Hill, and Director of the Alabama Securities Commission
Joseph P. Borg, have sued Future Income Payments LLC (FIP), and its chief executive officer,
Scott Alan Kohn, for alleged illegal activities related to its purported purchase of pensions. The
lawsuit was filed March 20 in Montgomery County Circuit Court.
The Attorney General’s Office, Securities Commission and Banking Department are asking the
court to issue an injunction to stop activities that they state are in violation of the Alabama Small
Loan Act, the Alabama Consumer Credit Act, the Alabama Securities Act and the Alabama
Deceptive Trade Practices Act.
“This company operated an illegal lending scheme that took advantage of vulnerable Alabama
consumers by targeting the pension benefits that protect retirees from poverty and hardship,”
said Attorney General Marshall. “Anyone who is still making payments to FIP is advised to
stop, and to cancel any debits from their accounts to this company. My office, along with the
Alabama Banking Department and Alabama Securities Commission, is committed to putting a
stop to this kind of exploitative and illegal activity.”
FIP is a Nevada company which markets and advertises the purchase and sale of pension
income streams. According to marketing materials and information located on its websites, FIP
purchases pensions from retirees, bundles them into structured cash flows, and then sells the
cash flows to investors. The allegations in the complaint indicate that the company targeted two
groups of individuals, those who needed an immediate source of cash in the form of a lump
sum payment, and those who were seeking an investment opportunity. According to the
complaint, individuals searching for short-term loan products were directed to FIP’s website
where they were asked to submit an inquiry form. Shortly thereafter, the consumer would
receive a call from a FIP sales person who attempted to sell FIP’s services to the Alabama

consumer. The plaintiffs allege that FIP engaged in deceptive practices by exploiting those
individuals who urgently needed cash for healthcare, family emergencies, or other immediate
demands. The consumers were ultimately saddled with unlicensed loans, many of which were
made at unlawful interest rates.
Once FIP had secured the pension stream from the consumer, it would then bundle and market
“structured cash flows” to investors across the nation, including Alabama. As an incentive to
purchase, FIP represented to investors that the investments could provide higher than average
returns and that the risk of investing would be mitigated by reserve accounts. According to the
complaint, however, no reserve accounts existed, and investors have stopped receiving returns
on their investments. “Pension-backed structured cash flows are often touted as a safe and high-
yield investment, but these investments can be risky and complex. In the case of FIP, investors
were misled into believing not only that the investments were safe, but that they were insured
by reserves,” said Deputy Director of Enforcement for the Alabama Securities Commission,
Amanda Senn.