Richard Scott Shelley
History Of Richard Scott Shelley
Respondent first became registered with FINRA in March 1996, as a General Securities
Representative of a former member of FINRA. From December 2002 through December
2020, Respondent was registered with FINRA as a General Securities Representative and
an Investment Company and Variable Contracts Products Representative, through an
association with FINRA member Packerland Brokerage Services, Inc. Respondent has
not been associated with a FINRA member or registered with FINRA since December 31, 2020. Although Respondent is not currently registered with FINRA or associated with a
FINRA member, he remains subject to FINRA’s jurisdiction pursuant to Article V,
Section 4 of the FINRA By-Laws.
Richard Scott Shelley Report
This matter originated from FINRA Enforcement’s review of Future Income Payments,
LLC (FIP).
FINRA Rule 3280(e) generally defines a private securities transaction as any securities
transaction outside the regular scope of an associated person’s employment with a
member. FINRA Rule 3280(b) states that “[p]rior to 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) states that when an associated person has received or may receive selling compensation, the member firm shall provide written approval or disapproval of the associated person’s participation in the proposed private securities transaction. A violation of Rule 3280 is also a violation of FINRA Rule 2010, which requires associated persons, in the conduct of their business, to observe high standards of commercial honor and just and equitable principles of trade.
In July 2016, Respondent sold an investor $29,500 in a FIP security. F1P represented
itself as a structured cash flow investment that purchased pensions at a discount from pensioners and then sold a portion of those pensions as a “pension stream” to investors.
HP generally promised investors a seven to eight-percent rate of return on their
investment. Respondent received a total of $1,475 in commissions in connection with this transaction.
At all times during the stated period, Respondent’s employer member firm prohibited its registered representatives from participating in the sale of private securities transactions without prior approval from the firm. Respondent did not provide written notice to his employer member firm prior to participating in the Fl? sale. In December 2016, Respondent also falsely attested on an Annual Compliance Questionnaire that he did not participate in a private securities transaction.
In April 2018, FIP ceased business, owing nearly $300 million in unpaid investor
payments. In a March 12, 2019 indictment, the United States charged FIP and its owner,
Scott A. Kohn, with conspiracy to engage in mail and wire fraud related to FIP’s
operations.
Therefore, Respondent violated FINRA Rules 3280 and 2010.
Penalties, Punishments & Sanctions
A one-month suspension from associating with any FINRA member in all
capacities and
A $5,000 fine
The fine shall be due and payable either immediately upon reassociation with a member
firm or prior to any application or request for relief from any statutory disqualification
resulting from this or any other event or proceeding, whichever is earlier.
Respondent specifically and voluntarily waives any right to claim an inability to pay, now
or at any time after the execution of this AWC, the monetary sanction imposed in this
matter.
Respondent understands that if he is barred or suspended from associating with any
FINRA member, he becomes subject to a statutory disqualification as that term is defined
in Article III, Section 4 of FINRA’s By-Laws, incorporating Section 3(a)(39) of the
Securities Exchange Act of 1934. Accordingly, he may not be associated with any
FINRA member in any capacity, including clerical or ministerial functions, during the
period of the bar or suspension. See 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. Respondent’s conduct violated FINRA Rules 3280 and 2010.
Who is the Financial Adviser?
A financial adviser or advisor is a professional who offers financial services to clients based on their financial situation. In several countries, financial advisors have to finish specific training and register with a regulatory body to provide advice.
How To Spot A Fraud Finance Advisor (Infographic)
Help For Victims Of Richard Scott Shelley
If you have lost funds because of misrepresentation, unsuitable investment, or unsuitable investment strategy from Richard Scott Shelley. Then you can take legal action and get justice. Fraud, Malpractice & dereliction of duty should not be taken lightly, especially in this industry. We highly suggest that you notify authorities or seek legal action if your financial advisor or brokerage firm fails to abide by FINRA’s rules are regulations.
Check out the report for: Richard Abrams (UBS Financial Services)
Financial advisors are regulatory & legally obligated to suggest (recommend) the most suitable investments/investment strategies to their clients. Their suggestions should have their client’s best interests and should be appropriate for their client’s goals and needs. Similarly, the brokerage firm which hires financial advisors also has a regulatory & legal obligation to keep a close watch and supervise their Financial Advisors’ practices & behavior. They need to make sure that the financial advisor is not being manipulative or having an unreasonable bias towards certain investments. If the financial advisor and/or the brokerage firm breaches these duties, then the client/customer may be entitled to a full or partial recovery of their losses.
Financial advisors need to have the interest of their clients when giving suggestions related to investments and investment strategies. Reasonable basis suitability requires the advisor to do their best to analyze & identify the risks and rewards associated with their suggested investment and/or investment strategy.
