Texas State Revokes George Marwieh’s RIA License
Our broker misconduct lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm) are investigating claims by customers who were sold Future Income Payments notes by their financial advisers or brokers.
One of these advisers, George A. Marwieh, got his license revoked by the state of Texas. This bars him from working as a registered investment adviser (RIA) in Texas. Marwieh and his Marwieh Advisory Services, LLC are based in Austin, Texas.
Future Income Payments is accused of running a Ponzi scam that defrauded over 2600 investors of more than $300M. Many of those who lost money were retirees and US veterans.
Texas State Securities Board Alleges Excess Commission, Conflicts
The Texas State Securities Board found that there were conflicts of interest related to Marwieh ‘s selling $5M of pension stream investments by Future Income Payments and promissory notes from real estate developers to customers. The state’s Securities Commissioner said that Marwieh misused client monies and did not disclose the excess commissions.
According to the Texas order, from 2011 to 2017, the financial adviser made $115K in commissions from selling $2.3M of Future Income Payment notes to 23 clients. Marwieh also is accused of making $228K in commissions from selling $2.3M of the promissory notes to 9 customers.
The state contends that although Marwieh allegedly did not provide any actual ongoing management of customers’ assets, he billed them a 1-2% yearly asset management fee. He also was not a registered broker-dealer when he was paid the commissions. The order deemed that Marwieh and his firm’s financial incentive for recommending Future Income Payments to customers was a conflict of interest.
To settle this Texas securities case, Marwieh and his firm have consented to the finding that they engaged in fraudulent business practices. They also consented to the license revocation.
Future Income Payments Ponzi Scam
Hundreds of registered investment advisers, brokers, financial planners, and insurance agents sold investments by Future Income Payments, making 6-8% in sales commissions upfront.
Future Income Payments offered lump-sum payments to retirees in exchange for a portion of their monthly pensions or other benefits. These payments were then sold to investors as structured cash flows. Substantial returns and a monthly income that was supposed to keep coming for several years were promised. Instead, in 2018, payments to investors ceased.
Future Income Payments has since been accused of issuing illegal loans and, in some instances, charging a 100% interest rate. Last year, the company’s CEO, Scott Kohn was indicted on fraud charges and accused of operating a Ponzi scam.
Broker Misconduct Fraud Attorneys
Recently, the Financial Industry Regulatory Authority (FINRA) barred former NYLIFE Securities broker Kari Bracy for selling Future Income Payments investments to customers. SSEK Law Firm is investigating claims against Bracy, George Marwieh, and the other brokers and RIAs that sold these investments.
Over the last 30 years, our investor fraud lawyers have helped thousands of investors recover their losses that were due to fraud or negligence. Contact SSEK Law Firm today for a free, no-obligation consultation of your case.