History Of Richard Scott Shelley
Respondent signed up with FINRA for the first time in March 1996 as a General Securities Representative for a former FINRA member. Respondent was registered with FINRA as a General Securities Representative and an Investment Company and Variable Contracts Products Representative from December 2002 to December 2020. This was done through Packerland Brokerage Services, Inc., which is a member of FINRA.
Since December 31, 2020, the Respondent has not been connected to a FINRA member or listed with FINRA. Article V, Section 4 of the FINRA By-Laws says that the Respondent is still subject to FINRA’s authority, even though he is not registered with FINRA or affiliated with a FINRA member at the moment.
Richard Scott Shelley Report
This problem started when FINRA Enforcement looked into Future Income Payments, LLC (FIP).
FINRA Rule 3280(e) says that a private securities trade is any time an associated person buys or sells securities outside of their normal job duties with a member. FINRA Rule 3280(b) says that “[b]efore participating in any private securities transaction, an associated person shall provide written notice to the member with which he is associated, describing in detail the proposed transaction and the person’s proposed role therein and stating whether he has received or may receive selling compensation in connection with the transaction.”
Rule 3280(c) says that a member firm must give written permission or disapproval for an associated person to take part in a planned private securities transaction if the associated person has received or could receive selling compensation. A violation of Rule 3280 is also a violation of FINRA Rule 2010, which says that people who do business with each other must follow high standards of business respect and fair and just business practices.
In July 2016, Respondent sold a FIP asset to an investor for $29,500. F1P said it was a structured cash flow investment that bought pensions from retirees at a discount and then sold a part of those pensions as a “pension stream” to investors.
Most of the time, HP told buyers that they would get a return of seven to eight percent on their money. Respondent got a total of $1,475 in fees from this deal.
During the time period in question, Respondent’s employer member firm never allowed its registered representatives to sell private stocks without first getting permission from the firm. Respondent did not give his employer member business any written notice before taking part in the Fl. sale. Respondent also lied on an Annual Compliance Questionnaire in December 2016 when he said he had not taken part in a private securities deal.
FIP stopped doing business in April 2018, leaving investors without nearly $300 million. The US charged FIP and its owner, Scott A. Kohn, with conspiring to commit mail and wire fraud connected to FIP’s operations in an indictment on March 12, 2019.
Respondent broke FINRA Rules 3280 and 2010 as a result.
Penalties, Punishments & Sanctions
A ONE-MONTH SUSPENSION FROM ASSOCIATING WITH ANY FINRA MEMBER IN ALL
CAPACITIES AND
A $5,000 FINE
The fine must be paid either right away when the person rejoins a member company or before he or she applies or asks for relief from any statutory disqualification caused by this or any other event or proceeding.
Respondent specifically and freely gives up any right to say that he or she can’t pay the monetary sanction in this case, either now or at any time after this AWC is signed.
Respondent knows that if he is banned or suspended from working with any FINRA member, he is subject to a statutory disqualification, as stated in Article III, Section 4 of FINRA’s By-Laws, which includes Section 3(a)(39) of the Securities Exchange Act of 1934. During the time he is barred or suspended, he can’t work for or with any FINRA member in any way, even in a clerical or religious position. Check out FINRA Rules 8310 and 8311.
Richard Scott Shelley Review
In July 2016, Respondent participated in one private securities transaction in the total
amount of $29,500 without prior written disclosure to, and approval from his employer member firm. The respondent’s conduct violated FINRA Rules 3280 and 2010.
Help For Victims Of Richard Scott Shelley
If you lost money because Richard Scott Shelley lied to you, sold you bad investments, or gave you bad advice about how to spend, you can get your money back. Then you can go to court and get what’s right. Fraud, bad behavior, and not doing what you’re supposed to do should not be taken easily, especially in this business. If your financial advisor or brokerage company doesn’t follow FINRA’s rules and regulations, you should tell the authorities or go to court.
Financial advisors are required by law and regulation to suggest to their clients the best investments and investment plans. Their suggestions should be in the best interest of their clients and fit with their goals and wants. In the same way, the brokerage company that hires financial advisors has a legal and regulatory duty to keep a close eye on and oversee their practices and behavior.
They need to make sure that the financial expert isn’t trying to trick them or isn’t favoring certain investments for no good reason. If the financial advisor or brokerage company doesn’t do these things, the client or customer may be able to get all or some of their money back.
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