California Department of Business Oversight

DANIEL MCCOURT APPLIED WITH THE CALIFORNIA DBO FOR AN INVESTMENT ADVISOR (IA) CERTIFICATE FOR HIS DBA, FINANCIAL PLANNING ASSOCIATES. MCCOURT'S APPLICATION FOR AN IA CERTIFICATE WAS DENIED BASED ON THE ORDER ACCEPTING OFFER OF SETTLEMENT BETWEEN MCCOURT AND FINRA ON JANUARY 20, 2015, RESULTING IN A 2 YEAR FINRA SUSPENSION AND $50,000.00 FINE.

Order

Denial

NONE.

ADVISOR DANIEL MCCOURT SOLICITED THREE LOANS FROM THE [CUSTOMERS]. TWO WERE PERSONAL LOANS, THE THIRD WAS A LOAN FOR SURF CITY COFFEE, DANIEL MCCOURT'S OUTSIDE BUSINESS ACTIVITY. THE [CUSTOMERS] ARE ALLEGING VIOLATIONS OF FINRA RULES, NEGLIGENCE, CONVERSION AND BREACH OF FIDUCIARY DUTY.

$220,634.00

FINRA

MCCOURT WAS NAMED A RESPONDENT IN A FINRA COMPLAINT ALLEGING THAT HE PARTICIPATED IN PRIVATE SECURITIES TRANSACTIONS OUTSIDE THE SCOPE OF HIS ASSOCIATION WITH HIS MEMBER FIRM. THE COMPLAINT ALLEGES THAT MCCOURT'S FIRM HAD PREVIOUSLY APPROVED MCCOURT'S OUTSIDE BUSINESS ACTIVITY REQUEST FOR A COFFEE BUSINESS. MCCOURT'S OUTSIDE BUSINESS ACTIVITY BEGAN ACCEPTING INVESTMENTS FROM INVESTORS, INCLUDING FIRM CUSTOMERS, IN THE FORM OF LONG-TERM PROMISSORY NOTES. ALTHOUGH THE FIRM HAD APPROVED HIS OUTSIDE BUSINESS ACTIVITY, MCCOURT DID NOT PROVIDE WRITTEN NOTICE TO HIS FIRM OF THE PROPOSED INVESTMENTS IN HIS OUTSIDE BUSINESS ACTIVITY THROUGH THE ISSUANCE OF THE PROMISSORY NOTES, NOR DID HE PROVIDE WRITTEN NOTICE TO THE FIRM OF HIS PROPOSED ROLE IN, OR THE SELLING COMPENSATION THAT HE MAY RECEIVE FROM, THE PRIVATE SECURITIES TRANSACTIONS. THE OUTSIDE BUSINESS ACTIVITY RAISED AT LEAST $1,294,610.10 THROUGH THE ISSUANCE OF THE LONG-TERM PROMISSORY NOTES. APPROXIMATELY $1,102,032.18 OF THE PRINCIPAL RAISED BY THE OUTSIDE BUSINESS ACTIVITY THROUGH THE ISSUANCE OF THE PROMISSORY NOTES WAS FROM FIRM CUSTOMERS. AS OF SEPTEMBER 26, 2012, MCCOURT HAD REPAID APPROXIMATELY $266,134.49 IN PRINCIPAL; $145,634.49 OF WHICH WAS REPAID TO FIRM CUSTOMERS. THE COMPLAINT ALSO ALLEGES THAT MCCOURT PROVIDED FALSE INFORMATION AND FALSIFIED DOCUMENTS TO A MORTGAGE COMPANY ON BEHALF OF ONE OF HIS CLIENTS AT HIS FIRM. THE FALSE INFORMATION AND FALSIFIED DOCUMENTS WERE PROVIDED TO THE MORTGAGE COMPANY BY MCCOURT TO HELP THE CLIENT QUALIFY FOR A HOME LOAN.

Decision & Order of Offer of Settlement

Civil and Administrative Penalty(ies)/Fine(s)

$50,000.00

Suspension

all capacities

two years

2/16/2016

2/15/2018

Without admitting or denying the allegations, McCourt consented to the sanctions and to the entry of findings that he participated in private securities transactions without providing prior written notice to his member firm. The findings stated that McCourt's firm had previously approved his outside business activity request for a coffee business. McCourt's outside business activity began accepting investments from investors, including firm customers, in the form of long-term promissory notes. The promissory notes were securities and prior to participating in the private securities transactions, McCourt did not provide written notice to his firm of the proposed investments in his outside business activity through the issuance of the promissory notes, nor did he provide written notice to his firm of his proposed role in, or the selling compensation that he may receive from, the private securities transactions. The findings also stated that McCourt provided false information and falsified documents to a mortgage company on behalf of one of his clients at his firm. The false information and falsified documents were provided to the mortgage company by McCourt to help the client qualify for a home loan.

CLIENT IS ALLEGING THAT ADVISOR MISREPRESENTED THE INVESTMENTS THAT SHE PURCHASED AND THAT ADVISOR CHURNED HER ACCOUNT.

$90,000.00

$25,000.00

FOOTHILL SECURITIES, INC.

Permitted to Resign

POSSIBLE FAILURE TO FOLLOW COMPANY POLICY/PROCEDURE

2013: BANKRUPTCY OF A REAL ESTATE INVESTMENT TRUST

$40,000.00

$18,000.00

REAL ESTATE INVESTMENT TRUST WENT INTO BANKRUPTCY.

CUSTOMER [CUSTOMER'S]ATTORNEY IS ALLEGING UNSUITABLITY, BREACHOF FIDICUARY DUTY AND ELDER ABUSE FOR RECOMMENDING THAT [CUSTOMER] INVEST IN REDWOOD MORTGAGE INVESTORS LP, DESERT CAPITAL REIT AND AMREIT (INVESTMENTS WERE MADE IN AUGUST, 2006.)[CUSTOMER'S] ATTORNEY INTENDS TO FILE A FORMAL COMPLAINT WITH FINRA ON APRIL 9, 2012. ADVISOR MCCOURT CONTENDS THAT THE INVESTMENTS WERE SUITABLE FOR [CUSTOMER] IN CONSIDERATION OF HER INVESTMENT OBJECTIVES, INCOME AND NET WORTH AND THAT SHE WAS FULLY INFORMED OF THE INVESTMENT FEATURES AND RISK.

$290,000.00

$155,000.00

1. BREAKPOINTS ON MUTUAL FUNDS 2. A SHARES VS. B SHARES 3. SUITABILITY

$360,000.00

CLIENT STATED THAT INVESTMENTS WERE INAPPROPRIATE DUE TO THEIR ILLIQUIDITY.

$63,325.00