Wall Street Journal: Secondary Insurance Market Company Disappears, Leaving Investors Stranded

Wall Street Journal: Secondary Insurance Market Company Disappears, Leaving Investors Stranded

The Wall Street Journal recently reported that Future Income Payments, LLC, has apparently collapsed and left investors “stranded.”

In an article published July 24 (here), the Journal last month said that the company “appears shut” and the man who ran it, Scott Kohn, has disappeared.

The Journal said that Kohn was a  “64-year-old felon” who “ran a company from a Nevada strip-mall mailbox” and that investors now say the company “took them for more than $100 million in losses.”

Said the Journal:

Mr. Kohn’s company, Future Income Payments, appears shut, according to court filings.  His investors are likely to be wiped out, according to lawyers representing them, who plan to sue scores of firms that sold Future Income products as soon as this week.  At least 25 states have taken enforcement actions or are investigating the company . . . .

Future Income Payments has been identified in court papers as a company that purchased income streams on various secondary insurance markets – particularly annuity-funded pensions, but also structured settlement payment rights, annuity payment rights, and other secondary insurance market streams.

Future Income Payments has been the subject of various actions by governmental entities, including the Consumer Financial Protection Bureau.  Previous Secondary Insurance Market Blog posts about the CFPB’s lawsuit against Future Income Payments are available here (Court Rules Against Pension Factoring Company That Challenging Consumer Financial Protection Bureau’s Authority, Investigation) and here (Factoring Company’s Identity Revealed: Future Income Payments Is The ‘John Doe’ Company Fighting The Consumer Financial Protection Board).

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