Securities Lawyers Blog
The securities lawyers of Gana Weinstein LLP are investigating investors that were recommended to invest in Voyager Financial Group, LLC, (VFG), a Delaware limited liability company. VFG maintained a website which claimed that Voyager “is a national distributor, broker, and consulting firm for a diverse array of products, services, and contracts in the financial services arena.” Voyager claimed to “specializes in the factored income stream market, working to satisfy the needs both of individuals and entities receiving structured payments and those wishing to take advantage of the stability and return on investment that these products can bring.”
However, several state regulators have found that brokers and financial advisors have been selling VFG investments under false and misleading statements. Advisors accused by state regulators of misleading investors include Sidney Evans with Equity Advisors LLC and Erryn Barkett with LPL Financial. Some states, such as California, have ordered VFG to cease doing business in their state.
State regulators and investors claim that VFG offers securities in the form of investment contracts called “Veterans Benefits’ Contracts.” VFG structured and promoted investment transactions between investors and sellers who typically are veterans who receive structured payments such as a military pension or disability benefits from the United States government. VFG then identified potential sellers and persuaded them to sell to investors a portion of their future government payments for a lump sum.
However, it has been alleged that VFG and brokers fail to fully disclose to potential investors that the assignment of government pensions and disability benefits is prohibited by federal law and therefore the investor does not actually acquire title or ownership of the underlying asset that provided the income stream from the government payment but merely a potential contractual right to receive the income stream. Thus, sellers lawfully retained the legal right to receive the government payments and can redirect the income stream away from VFG’s control at any time leaving the investor with only a potential legal claim for recovery of the government payments against the sellers.
The securities fraud lawyers at Gana Weinstein LLP represent investment customers who have suffered losses due to the inappropriate advice of their advisors. The majority of these claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.