The Feds Embrace a Fugitive in a $ 1 Billion Ponzi scheme targeting Veterans of the Army



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US marshals have arrested a California fugitive since his March indictment in a $ 1 billion ponzi scheme that was largely aimed at veterans, according to reports.

Scott Kohn, 65, was arrested Saturday on a beach in San Diego, according to the Greenville News.

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Kohn, the owner of Future Income Payments LLC, has been charged with conspiring to engage in mail and cable fraud. He was accused of recruiting "desperate money" borrowers and charging them interest of up to 240% on cash advances paid through their pensions, according to the FBI. and court records.

This money, in turn, was channeled to investors who had been promised "structured cash flow" and a return on investment of 6.5% to 8% via Future Income Paiments, investigators said. The company also used new investors' money to cover payments to its previous clients, the government said.

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The program killed more than 2,600 victims, many of whom were US veterans, the FBI said. The company has since been confronted with investigations by 25 public bodies.

Associated Press contributed to this article.

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