Legal consultancy initiates nationwide focus on litigation involving Indexed Universal Life insurance policies
In the ever-changing landscape of financial products, one type of permanent life insurance has found itself at the centre of a growing number of scams. Indexed Universal Life (IUL), a form of insurance with a cash value account tied to a stock market index, has become a hotbed for fraudulent activities.
Robert G. Rikard and Peter Protopapas, the brains behind RP Legal LLC, have made IUL litigation their firm's focus. With over 400 clients, including retirees, families, business owners, and professionals, Rikard has recovered tens of millions of dollars from insurers and financial firms on behalf of his clients.
The duo's latest endeavour is to tackle the continued evolution of IUL-fueled scams. Rikard expects to find plenty of business due to the proliferation of these schemes. One such scheme, Future Income Payments (FIP), was a nationwide Ponzi scheme that earned its founder, Scott Kohn, a 10-year prison sentence. RP Legal has represented clients involved in this IUL-fueled Ponzi scheme.
FIP solicited pensioners with a lump sum in exchange for a portion of their future pension payments. The future pension payment terms required investors to pay an annual interest rate exceeding 100% over a five-year term, a fact often hidden from them. Investors were also urged to fund IUL policies with their FIP payment, creating another opportunity for rogue agents and FIP reps to charge hidden and high fees.
Multi-level marketing (MLM) efforts and enticing TikTok videos are among the current problems plaguing IUL products. Rikard believes that until insurance carriers focus more on the mechanics of policy performance rather than just selling the product, there will be more litigation.
To combat this growing issue, RP Legal plans to add teams of lawyers, analysts, and paralegals over the coming months. The firm, dedicated solely to IUL litigation, will pursue cases big and small across the country.
John Hilton, Senior Editor at InnFeedback.com, has covered business and other beats for over 20 years. He can be reached at [email protected] or on Twitter @INNJohnH for more information on this developing story.
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