Charles Oliver Allegedly Advised Clients to Invest in Fraudulent Investment Scheme
Clients of TV personality Charles Oliver (of “Hidden Wealth Solutions”) allege that they received unsuitable financial investment advice that resulted in significant financial losses.
Charles Oliver allegedly advised clients to invest their money in pension structured cash flows operated by the company, Future Income Payments (FIP). FIP has been hit with multiple lawsuits and penalties for their predatory lending practices. The company’s instability has ultimately penalized investors, who haven’t received the money they were promised.
What Are Pension Structured Cash Flows?
Pension structured cash flows come with complex risks which are often not disclosed to the investor.
Individuals can sell future rights to the monthly cash flow of their pension plans in exchange for a lump sum. The financial institutions that purchase the rights to the pension plans then sell the monthly cash flow to investors.
These investments are advertised as predictable, monthly income with high yields. However, they come with complex financial risks which are often not disclosed to the investor.
Pension structured cash flows are illiquid, meaning they can be difficult to sell. These products are also usually not registered with the U.S. Securities and Exchange Commission (SEC), so when problems do occur, it can be difficult to resolve them. Further complicating matters is that the investor’s legal rights to the pension cash flow can be challenged since it’s often illegal to purchase pension funds.
Investor Hasn’t Received Payments in Four Months
Unfortunately for some of Charles Oliver’s clients, they were advised to invest in pension structured cash flows—with a disreputable company nonetheless—despite their inherent risks.
Mr. Oliver allegedly went so far as to claim it would be like “auto-pilot.”
For example, one of Mr. Oliver’s clients wanted to pull millions of dollars out of his 401k of balanced mutual funds to purchase a federal pension structured cash flow with Future Income Payments. The client was assured that it was a safe investment, and Mr. Oliver even allegedly went so far as to claim it would be like “auto-pilot.”
The client entered a four-year structured cash flow investment with FIP in January 2017 and received regular monthly payments for a year. Four months ago though, the payments abruptly stopped without any warning or explanation. FIP has since claimed that they are “restructuring,” and it’s unclear if they will resume payments to any investors.
Future Income Payment’s History of Fraud
This isn’t the first time Future Income Payments has engaged in questionable business practices. FIP is banned from operating in multiple states for being an unlicensed lender, including California, Illinois, Iowa, New York, Virginia, and Washington.
In 2016, the Consumer Financial Protection Bureau launched an investigation into the company’s predatory lending practices, which were primarily targeted at the elderly, military veterans, and disabled. Borrowers are often slapped with interest rates as high as 200%—terms that aren’t clearly communicated to them upfront.
Were You Advised to Invest in FIP?
If Charles Oliver or another financial adviser recommended that you invest in Future Income Payments causing you to ultimately suffer a financial loss, you may be able to fight back.
Financial advisers are expected to recommend investments suitable to their client’s needs, financial state, and investment goals. If they recommend unsuitable investments, they may be liable for broker misconduct.
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