Options for Future Income Payments, LLC Losses due to Investments with Former NYLife Securities LLC Broker Gabriel Hynes

Future Income Payments

There are options for customers of former NYLife Securities LLC broker Gabriel Hynes (CRD# 3152541) who suffered losses due to investments in Future Income Payments, LLC (FIP LLC) and related investments and insurance policies funded by FIP distributions. Hynes was registered with Kestra Investment Services, LLC in St. Augustine, Florida from March to April 2018 and in February 2018. Previously, Hynes was registered with NYLife Securities LLC in St Augustine, Florida from 2001 to 2017. Hynes was terminated from Eagle Strategies LLC and NYLife Securities LLC regarding, “Mr. Hynes was permitted to resign after the company became aware he violated company policy by failing to disclose: (a) multiple outside business activities and private securities transactions; (b) a brokerage account with an outside broker-dealer; (c) a federal tax lien.”

Future Income Payments, LLC (FIPs) are investments that are primarily sold as a growth and income investment tool by insurance agents or independent marketing organizations. FIPs are used to supplement income, grow assets, and fund other insurance products. FIPs are structured cash flow products related to pensions, where the investor pays a lump sum in exchange for the right to collect the person’s pension and sometimes disability plans or benefit programs on their behalf. The seller would forward the pension payments to FIP, and then FIP would forward to the investor minus any fees owed to FIP.

If the person lives long enough, the investor can see a profit. However, for many investors, the person whom they purchased the pension/disability plan does not live long enough to receive a profit. In many instances, the pensioner continues to collect benefits as well as the upfront lump sum and makes claims that the agreement with the investor was invalid. FIP LLC already collected the fees, and the investor doesn’t see those recurring payments.

It is alleged that FIP LCC issued loans without a license and disguised the loans as sales agreements. It is believed that most investors will lose their entire investment. FIP has been subject to regulatory action in California, Colorado, Indiana, Iowa, Massachusetts, New York, North Carolina, Pennsylvania, Virginia, and Washington.

In January 2020, FINRA barred Hynes after he “consented to the sanction and to the entry of findings that he refused to appear for on-the-record testimony requested by FINRA in connection with its investigation of his sale of Future Income Payments, LLC’s structured cash flow investments comprised of pension streams.”

In November 2017, FINRA sanctioned Hynes to a $10,000 civil and administrative penalty and fine and suspended him for free months after he “consented to the sanctions and to the entry of findings that he purchased securities issued by privately-held companies costing a total of $90,000. The findings stated that these transactions were outside the regular course and scope of his employment with his member firm. As a result, Hynes was required to provide written notice to the firm before participating in them, but he failed to provide the firm with any notice. The findings also stated that Hynes opened an account at another member firm and maintained the account throughout his association with his firm. Hynes deposited into the account the securities he had purchased through the private offerings conducted away from his firm. Hynes failed to notify the other member firm that he was associated with his firm and failed to notify his firm that he had opened an account at another member firm.”

Hynes has been the subject of two customer complaints between 2001 and 2018, according to his CRD report:

July 2018. “Claimants allege that beginning in 2017, the RR misrepresented Future Income Payments, LLC (FIP) as a safe investment which would provide monthly payouts of 8% on a “guaranteed basis.” The case was settled for $1,425,000. The case was regarding outside investments and took place while Hynes was registered with NYLife Securities LLC.

February 2001. “Client alleged unauthorized sells in order to place him in funds that were risky.” The customer sought $25,000 in damages and the case was settled for $9,000. The case was regarding mutual funds.

Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, NYLife Securities LLC may be liable for investment or other losses suffered by Hynes’ customers.

Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.

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Author: Jeffrey Erez

The founder of Erez Law, Jeffrey Erez, focuses exclusively on securities arbitration and litigation. Mr. Erez passionately believes in representing aggrieved investors and obtaining justice for his clients through litigation.