Future Income Payments was “a precarious house of cards where Scott Kohn and his army of willing middlemen made off with huge profits, leaving investors holding the bag. The loss of the monthly income streams that investors thought they purchased has been devastating, since in many cases these trusting individuals tied up all their money in the scheme,” Peiffer said.
“The bottom line is that the massive scale of this investment swindle could not have happened without an eager and complicit network of brokers, financial planners and insurance agents who facilitated the illegal transactions by making victims feel comfortable,” he said.
Peiffer said his firm has identified 368 investment professionals who sold the investments. He said eight to 10 suits would be filed each week until all victims are represented.
Kohn formed Future Income in 2011, and five years later created Future Income Payments LLC, controlled by a Philippines-based corporation with Kohn as the sole owner, according to a complaint filed last year by Minnesota regulators. In an earlier case, Kohn pleaded guilty to trafficking in counterfeit goods in 2006 and served 15 months in federal prison.