Securities Arbitration Lawyer Blog
On June 8, 2021, the Financial Industry Regulatory Authority (“FINRA”) and Titan Securities entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) whereby Titan Securities consented to a censure and $20,000 fine. The sanctions are a result of Titan Securities’ failure to properly conduct an evaluation of a broker’s proposed sale of Future Income Payments to customers.
Unrelatedly, just last week, Titan Securities CEO and owner Brad Brooks was suspended for one year for failing to supervise a broker’s outside business activities between 2009 and 2012.
FINRA Letter of Acceptance, Waiver, and Consent No. 2019061705101
According to the AWC, Titan Securities failed to conduct an evaluation of the proposed Future Income Payments to determine whether the broker’s sale constituted securities transactions that should have been treated as outside securities activity. Instead, Titan Securities incorrectly determined that the disclosure related to the broker’s previously approved outside business activity of an insurance-related business without any investigation or inquiry into the Future Income Payments product.
As a result of Titan Securities’ carelessness, the firm approved the broker’s participation in Future Income Payments on April 20, 2017. Between May 2017 and March 2018, the broker sold over $1.5 million worth of Future Income Payments to 20 investors, 19 of which were customers of Titan Securities.
In April 2018, Future Income Payments, LLC ceased business, owing nearly $300 million in unpaid investor payments to over 2,600 individuals. This blog has previously written about Future Income Payments, LLC.
Future Income Payments, LLC
Future Income Payments, LLC represented itself as a structured cash flow investment that purchased pensions at a discount from pensioners and then sold a portion of those pensions as a “pension stream to investors.” Future Income Payments, LLC reportedly promised investors a 7% to 8% rate of return.
In April 2018, Future Income Payments, LLC ceased business, owing nearly $300 million in unpaid investor payments to over 2,600 individuals. In March 2019, Future Income Payments, LLC and its owner, Scott A. Kohn, were indicted by a Federal Grand Jury alleging a conspiracy to engage in mail and wire fraud. According to the indictment, Future Income Payments, LLC operated a Ponzi scheme.
How to Recover Losses or Obtain a Free Consultation
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. We pursue FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by financial advisors and brokerage firms.
If you have lost money as a result of investing with Titan Securities, or Future Income Payments, LLC, contact New York securities arbitration lawyers August Iorio and Jorge Altamirano of Iorio Altamirano LLP at august@ia-law.com, jorge@ia-law.com, or toll-free at (855) 430-4010 for a free and confidential evaluation of your account.