The Arizona Corporation Commission has ordered insurance producer Jeffrey Skidmore of Peoria and his company, Money Never Sleeps, LLC, to pay $624,135 in restitution and a $31,750 administrative penalty for their fraudulent sales of income-stream investments.
The Commission found that Skidmore and Money Never Sleeps, LLC, which also did business as “Union Retirement Solutions” and “Union Estate Planning,” sold income-stream investments offered by non-parties Future Income Payments, LLC and FIP, LLC (collectively, FIP).
The Commission found that FIP solicited military veterans and other retirees entitled to an income stream from pension or disability payments to accept a lump sum in exchange for several years’ worth of the monthly payments. FIP then sold these income streams as investments through salesmen and insurance producers. The Commission found Skidmore has been a licensed Arizona insurance producer since 2004 but he was not registered to offer and sell securities in Arizona.
The Commission found that Skidmore and Money Never Sleeps, LLC sold the investments to retired union workers with relatively limited investment experience. The Commission found that Skidmore and Money Never Sleeps, LLC misrepresented to investors that FIP’s investments were safe and would provide guaranteed retirement income. The investors have not received any repayments since April 2018.
The Commission found that Skidmore and Money Never Sleeps, LLC committed securities fraud by failing to disclose that FIP’s sole owner and president is a convicted felon who had pled guilty to multiple federal crimes and served prison time before starting FIP. The Commission also found that Skidmore and Money Never Sleeps, LLC failed to disclose numerous legal actions by at least seven state regulators against FIP for unlicensed and predatory lending practices against veterans and other retirees who sold their pensions and disability payments.
Additionally, the Commission ordered Jennifer Skidmore, manager of Money Never Sleeps, LLC, to pay $49,938.13 in restitution and a $5,000 administrative penalty.
In settling this matter, the respondents admit for purposes of this proceeding the Commission’s findings and agree to the entry of the Commission consent orders.