Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/adviser Richard Scott Shelley (CRD # 2671545) was recently suspended from the securities industry by FINRA’s Department of Enforcement. The sanction occurred as a result of an investigation into his unapproved sales of the private securities offering of Future Income Payments, LLC (“FIP”).
The owner(s) of FIP have been indicted on federal charges including conspiracy relating to its operation. 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.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Shelley and/or FIP.
Registration Background for Richard Shelley
Mr. Shelley first became registered in the securities industry in 1996. He was most recently registered with Palm City, FL based Packerland Brokerage Services, Inc. (CRD # 37031) from December 2002 to December 2020. His prior registrations include High Mark Securities, Inc. (CRD # 42467) from April 2002 to December 2002, and Packerland Brokerage Services, Inc. (CRD # 37031) from March 2002 to April 2002.
FINRA’s Allegations against Richard Shelley
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated March 3, 2021, Mr. Shelley consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “In July 2016, [Mr. Shelley] 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”;
- “FIP 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”;
- “FIP generally promised investors a seven to eight-percent rate of return on their investment”;
- “[Mr. Shelley] received a total of $1,475 in commissions in connection with this transaction”;
- “In April 2018, FIP ceased business, owing nearly $300 million in unpaid investor payments”;
- “At all times during the stated period, [Mr. Shelley’s] employer member firm prohibited its registered representatives from participating in private securities transactions without prior written approval from the firm”;
- “[Mr. Shelley] did not provide notice to his employer member firm prior to participating in the FIP sale”; and
- By virtue of his actions, Mr. Shelley violated FINRA Rule 3280, regarding outside business activities and FINRA Rule 2010, regarding principles of trade and standards of commercial honor.
FINRA Sanctions Richard Shelley
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s March 3, 2021 AWC also indicates that Mr. Shelley consented to the following sanction(s):
- A one-month suspension from association with any FINRA member in all capacities; and
- A fine in the amount of $5,000.00.
Richard Shelley Does Not Have A History of Customer Complaints
In addition to the findings of FINRA’s Department of Enforcement, FINRA BrokerCheck for Mr. Shelley reveals that he does not have a history of customer complaints and/or customer initiated arbitrations.
If you or someone you know has or had a brokerage account with Richard Scott Shelley and have concerns regarding losses in your investments or possible sales practice violations including fraud, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.