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 65-year-old Scott Kohn was arraigned Nov. 13 along with his company Future Income Payments which operated the alleged scheme.
News outlets reported the U.S. Marshals Service arrested Kohn on Sept. 21 in San Diego. Kohn had been on the run since March when authorities in South Carolina secured fraud indictments against him.
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.
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.
An April letter to investors says about 25 states are investigating or have taken action against Kohn's company.