Ex-NYLIFE Securities Broker Accused Of Selling Investments In Mass Ponzi Scam
If you suffered losses after former NYLIFE Securities broker, Kari Bracy, also known as Kari Falwell, or any other registered representative persuaded you to invest in Future Income Payments, please contact Shepherd Smith Edwards and Kantas (SSEK Law Firm) today.
Our stockbroker securities law firm has been looking into claims involving Future Income Payments, LLC. By the time the company stopped doing business in 2018, over 2600 investors were owed more than $300M. The firm has since been accused of running a Ponzi scam.
Future Income Payments Targeted Retirees and US Veterans
The United States Department of Justice contends that the entity pursued pension holders including US veterans and retirees who needed money. It would go on to use newer investors’ money to help pay earlier investors in Ponzi-like fashion.
Pensioners were offered lump-sum payments in exchange for part of their monthly pension payments, or even in some cases their disability plans or other benefits programs. Investors were then solicited to buy structured cash flows, which were the pension payments made by pensioners. They were promised a substantial return rate and a monthly income for several years.
Investors were blindsided when they stopped getting these payments in April 2018. Regulators have since accused the company of issuing unlawful loans where, in some cases, a 100% interest rate was charged.
In November, Scott Kohn, who is accused of operating the Ponzi scam was indicted on conspiracy to commit mail fraud and wire fraud charges.
Meanwhile, hundreds of brokers and financial advisors have since been accused in investor claims of negligence and breaching their fiduciary duty when they sold Future Income’s structured cash flows, making 6-10% in upfront commissions in the process.
Bracy Barred By FINRA After Not Cooperating In Investigation
Kari Bracy came under scrutiny by the Financial Industry Regulatory Authority (FINRA) for selling investments in Future Income. The self-regulatory organization barred the former broker last month after Bracy declined to testify in their probe. She contested the FINRA settlement but without admitting to or denying the allegations.
Already, there has been at least one customer dispute alleging that Bracy made misrepresentations when she persuaded the investor to back what was supposed to be a safe, conservative investment that to provide a 7.5% yearly return for 10 years. The Futures Income Payments claim was settled for $80K.
According to her BrokerCheck record, Bracy, who worked nine years in the industry, was an NYLIFE Securities broker from 2009 to 2019.
Brokerage Firm Negligence
The brokerage firms whose brokers and financial advisors sold these investments should be held liable for inadequately supervising and/or allowing these transactions. If you were sold Future Income Payment structured cash flows by ex-NYLIFE Securities broker, Kari Bracy or any other financial representative, please contact SSEK Law Firm to request your free, no-obligation case consultation.