SANTA ANA, Calif. — South Carolina authorities have charged a man from Southern California with conspiracy to engage in mail and wire fraud after prosecutors say he defrauded about 2,600 people, including many veterans.
The Orange County Register reported Monday that 64-year-old Scott Kohn was arraigned Nov. 13 along with his company Future Income Payments which operated the alleged scheme.
Prosecutors say the company stopped doing business in 2018 before paying $300 million owed to investors.
U.S. Attorney’s Office officials say many of the pension holders are veterans of the United States armed forces.
Veterans are twice as likely to unknowingly participate in a scam as the general population, Carroll Harris, a U.S. Postal Inspection Service senior law enforcement official.
Prosecutors say pension holders made monthly payments and the company solicited investors to buy those payments disguised as cash flows.
A lawyer for Kohn could not be reached.
Authorities say Kohn could face 20 years imprisonment and a $250,000 fine.