A pyramid scheme is a type of fraud that involves promising participants payment or services, based on the recruitment of others into the program. Pyramid schemes are illegal in many countries, including the United States.
First Financial Security is a company that offers a financial pyramid scheme. This scheme allows people to make money by recruiting others into the company. The more people you recruit, the more money you make.
However, this scheme is not sustainable and will eventually collapse.
First Financial Security Class Action Lawsuit
In May of 2017, a class action lawsuit was filed against First Financial Security (FFS) in the United States District Court for the Central District of California. The case is entitled Nguyen v. First Financial Security, Inc., and is case number 8:17-cv-01334. The plaintiffs in the case are Le Tuan Nguyen and Tina Bui, who allege that they were recruited by FFS to sell life insurance products through false and misleading statements made by the company.
According to the complaint, FFS told its sales agents that they could earn substantial sums of money by selling life insurance policies to customers when in reality, the vast majority of sales agents earned little to no commission at all. The plaintiffs seek to represent a nationwide class of all persons who were recruited by FFS to sell life insurance products from May 2013 through the present. They are seeking unspecified damages, disgorgement of ill-gotten gains, and injunctive relief prohibiting FFS from engaging in further unlawful conduct.
If you believe you may be a member of the proposed class or if you have any questions about this lawsuit, please contact our office at 1-800-254-9493.
What is First Financial Security
First Financial Security, Inc. is a national financial services company headquartered in Norcross, GA that sells life insurance and annuities through a network of independent insurance agents across the United States. The company was founded in 2006 by CEO, Paul S. Lawrence, who serves as its President and Chief Executive Officer. First Financial Security is licensed to sell life insurance in all 50 states and the District of Columbia.
The company’s mission is “to make the American dream a reality for families by helping them secure their financial future.” First Financial Security accomplishes this by offering products that provide income protection and grow cash value over time so that policyholders can have peace of mind knowing they are prepared for whatever life may throw their way. Some of the most popular products sold by First Financial Security include whole life insurance, indexed universal life insurance, annuities, and long-term care insurance.
Whole life insurance provides coverage for your entire life and builds cash value that you can borrow against or use to pay premiums if you ever experience financial hardship. Indexed universal life (IUL) policies offer death benefit protection with the potential to earn interest based on stock market performance – without any risk of loss due to market downturns. Annuities provide guaranteed income for retirement while long-term care (LTC) insurance helps cover the costs associated with extended medical care should you need it later in life.
No matter what stage of life you are in, First Financial Security has a product to help you reach your financial goals so that you can live your best life possible.
What is the Pyramid Scheme
A pyramid scheme is a fraudulent investment opportunity in which participants are promised unrealistically high returns for recruiting other people to join the scheme. The promoters of a pyramid scheme typically control most or all of the cash flow and use it to pay exaggerated returns to early investors while using new investor money to keep the scheme going. Pyramid schemes are illegal in many countries because they inevitably collapse when there are not enough new investors to keep funding the payouts.
Participants can lose their entire investment, and sometimes even end up owing money to the promoters.
How Does First Financial Security Work
First Financial Security, Inc. (FFS) is a national financial services company headquartered in Norcross, Georgia. The company was founded in 2009 by CEO and President Phil Harris. FFS provides life insurance, annuities, and other financial products to its more than 100,000 independent sales associates (ISAs) across the United States.
FFS’s business model is based on a system of “forced savings” that allows its policyholders to save money while also earning a commission for themselves and their families. When someone becomes an FFS policyholder, they are required to make regular payments into their account. A portion of these payments go towards the life insurance policy, while the rest is deposited into a savings account that earns interest.
The money in the savings account can be used for any purpose, but if it is withdrawn early, there are penalties and fees associated with doing so. This system encourages people to save money over time so that they can eventually use it for large purchases or emergencies. In addition to life insurance and savings accounts, FFS also offers investment products such as mutual funds and index-linked annuities.
These products allow policyholders to grow their wealth over time while still providing them with some level of protection from market volatility. Overall, First Financial Security provides its customers with a variety of different ways to save for their future and protect themselves financially. The company has a strong focus on helping people achieve their long-term financial goals so that they can enjoy a comfortable retirement.
Who is behind First Financial Security
First Financial Security is a company that provides financial services and products to its customers. The company was founded in 2006 by two individuals, Mark and Kelli Darnell. First Financial Security is headquartered in Duluth, Georgia.
The company offers a variety of products and services, including life insurance, annuities, investments, and retirement planning. First Financial Security also has a program called the “Freedom Plan”, which helps people pay off their debt and save for their future. First Financial Security is committed to helping its customers reach their financial goals.
The company has a team of financial professionals who are available to help customers with any questions or concerns they may have. If you’re looking for a company that can help you plan for your future and reach your financial goals, then First Financial Security is a great option.
Is First Financial Security a Scam
There are many scams out there in the world of financial services, and First Financial Security is one of them. This company uses aggressive sales tactics to convince people to invest their money with them, promising high returns. However, the reality is that most people who invest in this company lose money.
In fact, First Financial Security has been sued multiple times for fraud and misrepresentation. If you are considering investing your money in this company, be very careful – you may end up losing everything.
FFS First Financial Security
In his blog post, “First Financial Security Pyramid Scheme,” Mike Johnson discusses the company First Financial Security (FFS), which he alleges is a pyramid scheme. He claims that FFS recruits people by promising them financial independence, but in reality, the company relies on recruitment to make money. Johnson says that most people who join FFS will never make any money, and he urges people to avoid the company.