Richard Scott Shelley (also known as Richard Scott Shelly) a stockbroker formerly registered with Packerland Brokerage Services Inc. has been fined $5,000.00 and suspended for one month from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings that he engaged in private securities transactions during the time that he was associated with Packerland Brokerage Services. Letter of Acceptance Waiver and Consent No. 2020065315901 (Mar. 3, 2021).
According to the AWC, in July of 2016, an investor placed $29,500.00 into a Future Income Payments (FIP) security because of Shelley. The regulator states that FIP was a structured cash flow investment that worked through FIP buying individuals’ pensions and then providing FIP investors with as much as eight percent returns on those pensions. Shelley was provided commissions from FIP for effecting the sale.
Packerland Brokerage Services did not sell FIP or approve of its stockbrokers engaging in FIP sales. The AWC states that Shelley was prohibited by Packerland Brokerage Services from effecting any securities transactions away from the firm without obtaining authorization beforehand. There was no point in which he provided any notification to the securities broker dealer regarding his FIP activities. FINRA also indicates that he had been administered a compliance questionnaire in which he falsely responded to a question about his involvement in outside securities transactions.
FINRA indicates that FIP no longer does business as of April of 2018 which was around the time that it owed investors approximately $300,000,000.00. The AWC states that FIP and owner Scott A. Kohn have been charged with conspiracy to engage in wire and mail fraud with respect to the operations at FIP.
FINRA determined that Shelley’s conduct was violative of FINRA Rules 2010 and 3280.
Shelley was registered with Packerland Brokerage Services between December 16, 2002 and December 31, 2020.
