Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker, Louis M. Olave (CRD # 5904834) was recently suspended from the securities industry by FINRA’s Department of Enforcement. The sanction occurred as a result of an investigation into his participation in the unapproved private securities offering of Future Income Payments, LLC (“FIP”).
The owner(s) of FIP have been indicted on federal charges including conspiracy relating to its operation. In April 2018, FIP ceased business, owing nearly $300 million in unpaid investor payments. In a March 12, 2019 indictment, the United States charged FIP and its owner, Scott A. Kohn, with conspiracy to engage in mail and wire fraud related to FIP’s operations.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Olave and/or FIP.
Registration Background for Louis Olave
Mr. Olave first became registered in the securities industry in 2011. He is currently registered with Burlington, VT based Lincoln Investment (CRD # 519). His prior registrations include Questar Capital Corporation (CRD # 43100) from November 2015 to February 2019, and ProEquities, Inc. (CRD # 15708) from May 2011 to November 2015.
FINRA’s Allegations Against Louis Olave
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated April 7, 2021, Mr. Olave consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “Between October 2017 February 2018, [Mr. Olave] participated in private securities transactions totaling $217,477, without prior disclosure to, and approval from his employer member firm”;
- “[Mr. Olave] solicited seven investors to purchase $217,477 in securities of Future Income Payments, LLC (FIP)”;
- “FIP represented itself as a structured cash flow investment that purchased pensions at a discount from pensioners and then sold a portion of those pensions as a “pension stream” to investors”;
- “FIP generally promised investors a seven to eight-percent rate of return on their investment”;
- “[Mr. Olave] received a total of $3,795 in commissions in connection with his sales of FIP securities”;
- “At all times during the stated period, [Mr. Olave’s] respective employer member firm prohibited their registered representatives from participating in private securities transactions without prior written approval from the firm”;
- “[Mr. Olave] did not provide notice to his respective employer member firm prior to participating in the FIP sales”; and
- By virtue of his actions, Mr. Olave violated FINRA Rule 3280, regarding outside business activities and FINRA Rule 2010, regarding standards of commercial honor and principles of trade.
FINRA Suspends Louis Olave From Securities Industry
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s April 7, 2021 AWC also indicates that Mr. Olave consented to the following sanction(s):
- A three-month suspension from association with any FINRA member in all capacities; and
- A fine in the amount of $5,000.00.
Louis Olave Has A History of Securities Industry Customer Complaints
In addition to Louis Olave being suspended by FINRA from the securities industry, FINRA BrokerCheck for Mr. Olave reveals that he has a history of customer complaints and/or customer initiated arbitrations, including but not necessarily limited to the following:
- On February 5, 2020, a customer-initiated arbitration was filed naming Mr. Olave as a respondent regarding alleged actions that occurred while he was associated with Questar Capital Corporation. The customer alleged breach of fiduciary duty, violation of NASD and FINRA rules, failure to supervise, negligence, breach of contract and respondeat superior. The customer further alleged damages in the amount of $24,000.00. On November 6, 2020, the arbitration panel issued an award in favor of claimant in the amount of $23,999.28.
- On November 16, 2014, a customer-initiated complaint was made against Mr. Olave regarding alleged actions that occurred while he was associated with ProEquities Inc. The customer alleged that the sale of annuities was unsuitable given their retirement and liquidity needs. The customer did not allege a specific dollar amount of damages. On December 18, 2014, the complaint was denied without customer compensation.
If you or someone you know has or had a brokerage account with Louis M. Olave and have concerns regarding losses in your investments including Future Income Payments, LLC or possible sales practice violations including fraud, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.