Court sets repayment schedule for United Financial Systems

Back to TopCommentsE-mailPrintBookmark and Share

The Indiana Supreme Court has ordered United Financial Systems Corp. to follow a payment schedule for the $2.4 million it still owes former customers.

The court's Jan. 20 order follows its finding in April 2010 that the Indianapolis-based company violated state law by selling estate plans without a license to practice law. The company, which Richard and Jayne Follett started in 1982, shut down not long after the court order.

The court has already ordered restitution through Indiana Attorney General Greg Zoeller, who set up a claims process last August, but getting the money has been an arduous process.

The Folletts "asserted frivolous, unreasonable and groundless arguments in an effort to delay issuing refunds," the most recent court order states, and orders United Financial's owners to also pay legal expenses of the Indiana State Bar Association.

The bar association brought the case, which was overseen by Commissioner Viola Taliaferro. The state supreme court, which has jurisdiction over unlawful-practice cases, confirmed Taliaferro's order on the repayment plan.

The attorney general's office initially estimated that more than 1,300 Hoosiers were eligible for more than $3 million in restitution. According to the most recent court order, there are 1,153 people eligible, and United Financial still owes $2.4 million to 1,007 of those people who submitted claims.

If the Folletts stick to the court-ordered schedule, it will take until the end of 2018 for everyone to receive full restitution. Because of the seven-year payment plan, the order calls for the Attorney General's Office to issue partial payments as money comes in. The remaining customers are owed an average $2,375. 

The Folletts had proposed paying $15,000 per month, which would have taken until mid-2017 for even half their former customers—many of whom were elderly—to be paid. 

The court's order covers only United Financial customers who bought estate plans after June 6, 2006, but other lawsuits are seeking to reach further in the company's history. At least two class-action suits could involve 4,000 or more Indiana clients who paid United Financial's fees before that date.

One of the suits, filed by Indianapolis retiree Richard Kennard, alleges that United Financial talked clients out of their existing wills, and that the estate plans they sold were ineffective.

After shutting down in Indiana, the Folletts and their sons, Richard and Beau, started other firms, including United Financial Resources in Sarasota, Fla.

Under the Jan. 20 court order, any of the 23 different business entities associated with the Folletts is liable for the repayment.

Taliaferro found each of the Folletts in contempt of court because they failed to appear for a hearing last June, but she delayed punishment in the event that they fail to make the scheduled payments.



  • Not at all!
    Because Revocable Living Trusts are constructed to meet each individual's needs, it can't be certain that your trust is valid or not. I suggest that you take your trust to an Attorney in your state that specializes in ESTATE LAW and ask them to review your trust and make any suggestions they think your trust may need to amend in order to be valid. While I am not an attorney, I do know that 99+% of the Revocable Living Trusts provided through UPS services and their independent attorneys are valid and successfully avoid the probate process.
  • The Other Side of the Story
    It should also be noted that today United Planning Services enjoys an A- rating with the Better Business Bureau. You should also understand that UPG advocates the use of a Revocable Living Trust for individuals to avoid their estates having to endure the Probate process. Probating estates is a "cash cow" for attorneys and is the main reason that people want to avoid going through probate. In essence, the lawsuit discussed above was conceived by and advocated by those attorneys that were losing their "cash cow" by people avoiding those probate expenses. Their complaint went to other attorneys that regulate their industry otherwise known as the State Bar. (to which those attorneys pay fees/dues annually for membership in their association). The State Bar filed the suit in behalf of their members with other attorneys known as the State Supreme Court. The Supreme Court ruled in favor of their fellow attorneys. Sound like a "good 'ol boy" collusion to you? The fact is that UPS had sought the advice of three separate experts on constitutional law and were told by each their their business model was legal and did not transgress the laws of the state of Indiana. Because of this suit UPS agreed to cease doing business in Indiana of moved their offices to Florida. As a result the citizens of Indiana have lost an advocate for protecting their assets within their estates and, the attorneys of Indiana will continue to "fleece the public" with their exorbitant probate fees, costs, and expenses which are on average 3 to 8 percent of the value of each estate. The real "bad guys" here are the attorneys (no real surprise) that managed to stop a legitimate business which offed services that saved their clients tens of thousands of dollars that were doomed to wind up in the attorneys pockets. As a side note, UPS continues to flourish and is now represented in 23 (soon to be 25) states. Also please note that 99.9% of UPS's existing nearly 50,000 clients are completely satisfied with the services rendered to them. (Sad to say, you just can't please all of the people all of the time)
  • How do we get on the restition list
    My mother also bought a policy from them, and I want to make sure she gets reimbursed properly, how does she make sure she is onthe re-payment list. Her policy is with a Texas company, Will she be safe there?
  • revocable living trust
    me and my husband bought a revocable living trust from united financial in 2008!!!! are you saying that this is not worth the pap0er it is written on??????

    Post a comment to this story

    We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
    You are legally responsible for what you post and your anonymity is not guaranteed.
    Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
    No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
    We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.

    Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

    Sponsored by

    facebook - twitter on Facebook & Twitter

    Follow on TwitterFollow IBJ on Facebook:
    Follow on TwitterFollow IBJ's Tweets on these topics:
    Subscribe to IBJ
    1. Good Day I am Mr (Victoria Wright) from United state of America, i stayed in NEW YORK, and i have a broke up business, until i found this company email who help me to gain a loan for business,, and now i want to used this short medium to congratulate the below company for the fast and safe money they loan to me without any form of collateral, i loan 500,000USD from the company to save my business and lots more, i saw their mail on the internet, everyone always give testimony for what they did, so i quickly contacted them and they all did everything for me without stress and my money was sent to my account just 3 days later, i was surprise and i feel so glad, now i have a standard business control agent who help me, now i will advice those who need urgent loan to contact him at the bellow email:zenithfirm12@gmail.com

    2. NOTICE:This is to inform the general public that Vampires are real. My name is James Franklyn.,am an agent of vampire,am here to introduce our new world trend to you,a world of vampire where life get easier,we have made so many persons vampires and have turned them rich,you will be assured long life and prosperity,you shall be made to be very sensitive to mental alertness,stronger and also very fast,you will not be restricted to walking at night only even at the very middle of broad day light you will be made to walk.In case you are wildly oppressed by some unscrupulous persons we can still help you fight them.Your protection is assured immediately you join.Just contact the bellow email if you are interested we are here to attend to you anytime you want us. Contact the bellow email for more details. Email:vampirescreed@hotmail.com Sincerely: James Franklyn.

    3. Bravo! Someone else that is willing to speak the truth! Bravo!_____NBCSN is available in almost 2 MILLION more homes than just a few years ago, but Indycar STILL gets less total viewers than it did just a few years ago when NBC took over Versus. Attendance and ratings cratered with the end of season races (just when the title battle got "interesting" HAH!__________And now...new race in Basilia, where Miles celebrated the "rich history" of Indycar racing there. Rich history? What, 7 events in the 100 years of AOW? Yep, some history. Well, at least its an oval. It's not??? Are you kidding me??? Gosh darn road racin furriners.

    4. PURITY RAY LOAN OFFER........ Have you been denied by your banks,or are you in need of of an urgent loan to pay of your bills we are capable of giving loans @ cheaper rate to interested individuals, student, companies and members of the public in need of finance to settle bills, we do offer considerable loans which you can count on. For more information on our various types of loan,then you will have to contact PURITY RAY LOAN FIRM, to help you achieve your desire LOAN APPLICATION FORM TO BE FILLED BORROWERS INFORMATION * Full name:………………………. * SEX * ……………………………. * Country………………………….. * State:……………………………. * Land:…………………………….. * Occupation:…………………….. * phone number:…………………. * Telephone: ………………………….. * Age:………………………………. * Amount needed as loan:……… * Loan Duration:………………….. * Propose of Loan:……………….. * Annual revenue:………………… * Monthly Income:……………….. * Guarantee:………………………. * Payment: monthly or annually Email.....purityrayloanfirm@gmail.com Thank you and God bless Mr Purity Ray PURITY RAY LOAN FIRM we tend to serve you better

    5. Problem: most of the people responding to this article don't know about this service AT ALL! Why? Lack of awareness. This isn't IndyGo. This is CIRTA: might as well be the mattress company because they are asleep at the wheel - something like 3 directors over the last year? Playing with federal grant money is great! This "region" wants commuter rail service, has spent MILLIONS on Transportation studies yet can't even support a commuter bus line? This is largely for suburban riders to get to downtown - not for "service people to work in our hotels and restaurants" ! Get your head out of your backside!! These are professionals, students etc. that don't want to fight traffic, save some money on parking, gas, stress.... if CIRTA would put their federal money into widely promoting the sevive to Greenwood, Fishers & Carmel instead of finding directors and studies - this would be a successful service. Our family uses(d) it daily for the last several years - but the recent uncertainty & now unreliability due to cuts from Carmel has been a problem. Now, costs us an additional $350/month for gas & parking ( $4200/year) plus vehicle wear, service, environmental impact ... YES - this REGION needs this this type of service in order to keep growing and getting the people it needs to fill skilled positions in downtown Indianapolis. Think outside of your own car !!!