Feds nab fugitive in $1B Ponzi scheme targeting military vets
U.S. marshals have nabbed a California man on the run since his March indictment in a $1 billion Ponzi scheme that largely targeted veterans, according to reports.
Scott Kohn, 65, was arrested Saturday on a San Diego beach, according to the Greenville News.
Kohn, the owner of Future Income Payments LLC, was charged with conspiracy to engage in mail and wire fraud. He has been accused of recruiting borrowers “who were desperate for money” and charging them interest rates that might top 240 percent for cash advances that were repaid through their pensions, according to the FBI and court filings.
That money, in turn, was funneled to investors who had been promised "structured cash flows" and a return of 6.5 percent to 8 percent through Future Income Payments, investigators said. The firm also used money from new investors to cover payouts to earlier clients, the government said.
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The scheme claimed more than 2,600 victims, many of whom were U.S. military veterans, the FBI said. The company has since faced investigations by 25 state agencies.
The Associated Press contributed to this article.