A California man has been arrested over allegations that he and his partners ran a $1 billion Ponzi scheme that targeted people receiving pensions.
News outlets report the U.S. Marshals Service arrested Future Income Payments LLC owner Scott Kohn on Saturday in San Diego. The 65-year-old has been on the run since March when authorities in South Carolina secured fraud indictments against him.
Court filings say the company provided cash advances to veterans and others that would then be repaid by their pensions. Traders weren't told the advances had interest rates that could top 240%. The upfront money came from investors who were promised up to 8% back on their investments.
An April letter to investors says about 25 states are investigating or have taken action against Kohn's company.