National Wave Of Five Lawsuits Filed Against “Middlemen” Who Lined Up Victims In $100 Million Predatory Retirement Investment Scheme
The cases filed today by PWCK named: John Marshall/JB Marshall Financial in
How did the FIP scheme work?
Investors were encouraged to scrape together all possible funds from retirement accounts, savings and home equity refis to buy into "structured cash flows" through FIP. Investors paid to buy a monthly income stream for a set term (usually five or 10 years) under a pension advance arrangement targeting individuals with fixed pensions (often retired police officers, teachers, and veterans). As part of the scheme, most investors also were encouraged to purchase life insurance policies and indexed universal life insurance policies. FIP "purchased" the future income from the pensioners on an upfront, lump sum and heavily discounted basis. The insurance agents, brokers, financial planners, and investment advisor firms that promoted the scheme to investors collected a healthy commission.
In reality, FIP is a small
Victims of the FIP investment swindle participated in a Thursday news conference organized by PWCK. Here are their stories:
Scott Sohn (Rancho Mirage, CA ) was a small business owner who recently sold his landscaping firm, retired, and rolled his 401k into a$350,000 FIP investment based on the advice ofJohn Marshall . To add insult to injury, Marshall also had Sohn invest in a Ponzi scheme.Eldridge Parker (Tampa, FL ) was retired when he started working withDerek Ifasi . Ifasi recommended FIP and had Parker invest$225,000 into it. Also, at the same time, he had Parker put$224,000 into an annuity. As a result, Parker can't even access his remaining retirement monies. Moreover, Ifasi told Parker to go back to work so he could afford to put his new paycheck into FIP. Parker was forced to sell his car to create an emergency fund. His current monthly expenses are$1352 , and he only takes in$1100 per month from his new full-time job. He now works multiple additional shifts to try and cover his monthly expenses.Scott Kayser (greaterPhiladelphia area) is a 55-year-old small business owner. He thought that he had a bona fide financial advisor that he could trust, but it turned out that he had an insurance agent. The agent wanted to put Kayser into an Indexed Universal Life Policy, so he told Kayser the only way to fund the policy was through FIP. The agent convinced Scott to put$75,000 from his savings and IRA into FIP.- Patricia "Trish" Koch (
Tarzana, CA ) and her husband are retired veterans.Leland Blair Whiting convinced them to refinance their home to purchase FIP, which would fund theirIndexed Universal Life Insurance policy. The Kochs took$300,000 from their home refi and invested in FIP to pay for the policy. Additionally, Whiting convinced Koch's husband to roll his$800,000 401k into a variable annuity. Now, they are out of money and financially devastated.
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The law firm Peiffer Wolf Carr & Kane maintains offices in
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