Articles Tagged with Richard Belott

Richard Belott

Publicly available records provided by the Securities and Exchange Commission (SEC) and the New Jersey Bureau of Securities accessed on August 16, 2018 indicate that former New Jersey-based investment adviser Richard Belott, and his former employer, Financial Planning Advisors, have been sanctioned by the Bureau in connection to various allegations of fraud.

According to the Bureau’s findings, the allegations against Mr. Belott include selling unregistered securities, acting as an agent without registration, making untrue statements of material fact and/or omitting material facts, engaging in “an act, practice of course of business which would operate as a fraud or deceit upon any person in connection with the offer, sale or purchase of securities,” doing the same upon advisory clients, engaging in dishonest or unethical practices in the advisory business, failing to maintain written investment advisory contract, failing to make and keep required books and records, and making false and misleading statements to investigators.

The Bureau’s complaint states specifically that from about 2008 until 2015, Mr. Belott and his employing firm, Financial Planning Advisors, made fraudulent sales of “at least 6.1 million of unregistered securities to at least eight investors,” including customers who were elderly. The products in question were at least 24 promissory notes that were represented as issued by local diners and a developer. “However,” according to the complaint, “instead of receiving promissory notes from the diners and developer, investors received personal promissory notes from the owners of the diners and the developer, who had undisclosed business relationships with Belott, and in one instance, from Belott himself.”

Financial Planning AdvisorsPublicly available records provided by the New Jersey Bureau of Securities and accessed on June 20, 2018 indicate that the Bureau has sanctioned New Jersey-based advisory firm Financial Planning Advisors, as well as its owner, Richard Belott, in connection with allegations they defrauded elderly customers. Fitapelli Kurta is interested in hearing from investors who have complaints regarding Financial Planning Advisors and/or Mr. Belott (CRD# 4725262).

According to the Bureau, Richard Belott participated in sales of unregistered securities “to at least eight investors,” including elderly and retired customers. He then allegedly used at least $1.55 million of the investors’ funds on personal expenses, “including his daughter’s college tuition, extravagant trips for himself and his wife, and mortgage payments on the couple’s beach house.”

The Bureau’s findings state that Mr. Belott and Financial Planning Advisors, from 2008 until 2015, offered and sold “at least 24 promissory notes” which they represented as issued by local diners as well as a developer; he allegedly represented to customers that their funds were investments in the businesses in question. However, according to the Bureau, his investors did not receive promissory notes from the diners or the developer, but instead from the owners of the businesses in question, “who had undisclosed business relationships with Belott.” The Bureau states that at least one note was issued by Mr. Belott himself. As for the promissory notes, according to the Bureau, they came with a term of one year, or longer, and their interest rates ranged from 5% annually to 18% annually. The diners, developer and Financial Planning Associates made interest and principal payments from their bank accounts.