The mastermind behind a $300 million Ponzi scheme has been sentenced to 10 years in prison for his role in exploiting military veterans in desperate financial straits, according to the U.S. Attorney’s Office for the District of South Carolina.
Scott Kohn, 68, of Newport, California, who was indicted in March 2019, was accused alongside coconspirators of conspiracy to commit wire fraud and mail fraud in connection with the buying and selling of military benefits.
The Greenville News spent a year investigating the scheme as part of its Indebted series.
During the seven years the scheme operated, Kohn drew upon fraudulently obtained funds to live a lavish lifestyle, according to prosecutors.
And when the Ponzi scheme ultimately collapsed, Kohn and his coconspirators had caused more than $310 million in losses to more than 2,500 retirees and had placed more than 13,000 veterans into exploitative loans, prosecutors said.
Kohn ran a corporation called Future Income Payments LLC. For several years, Kohn and partners used FIP as their vehicle for their nationwide scheme, prosecutors said. Kohn directed employees to use late-night advertising and the Internet to reach people, and more than 90 South Carolinians were among those ensnared, according to The News’ Indebted series.
According to a press release from…