FINRA

BELL WAS NAMED A RESPONDENT IN A FINRA COMPLAINT ALLEGING THAT HE SOLICITED CUSTOMERS TO INVEST IN HIS LENDING PROGRAM, WHICH HE DESCRIBED TO THE CUSTOMERS AS AN INVESTMENT OPPORTUNITY RESERVED FOR HIS SELECT CUSTOMERS AND CLOSEST FRIENDS. THE COMPLAINT ALLEGES THAT BELL TOLD CUSTOMERS THAT INVESTOR'S FUNDS WOULD BE POOLED TOGETHER AND USED TO PROVIDE HIGH-INTEREST LOANS TO SMALL BUSINESSES, THEREBY GENERATING PROFITS FOR INVESTORS. BELL GAVE PERSONAL CHECKS TO CUSTOMERS AS INTEREST PAYMENTS BUT REQUESTED THAT THEY REFRAIN FROM CASHING THE CHECKS AND TO CONSIDER THEM ONLY AS COLLATERAL IN THE EVENT THE LENDING PROGRAM FALTERED. BELL HAS NOT RETURNED TO THE CUSTOMERS, ANY OF THE $247,500 OF TOTAL PRINCIPAL HE RECEIVED FOR THIS PROGRAM. BELL'S MEMBER FIRM DID NOT OFFER, NOR DID THEY AUTHORIZE HIM TO SOLICIT OR SELL, POSITIONS IN ANY SUCH LENDING PROGRAM. BELL DID NOT NOTIFY HIS FIRM THAT HE INTENDED TO SOLICIT OR OBTAIN INVESTMENTS IN A LENDING PROGRAM OR THAT HE HAD DONE SO. BELL ALSO DID NOT SEEK APPROVAL OR RECEIVE PERMISSION FROM HIS FIRM TO PARTICIPATE IN ANY MANNER IN ANY PRIVATE SECURITIES TRANSACTIONS. THE COMPLAINT ALSO ALLEGES THAT BELL SOLICITED AND RECEIVED PERSONAL LOANS FROM CUSTOMERS. DURING THE RELEVANT TIME PERIOD, BELL DID NOT REQUEST OR RECEIVE APPROVAL FROM HIS FIRM TO SOLICIT OR RECEIVE THE AFOREMENTIONED LOANS FROM CUSTOMERS. THE FIRM'S PROCEDURES PROHIBITED REGISTERED REPRESENTATIVES FROM BORROWING OR LENDING MONEY FROM OR TO ANY FIRM CUSTOMER. THE COMPLAINT FURTHER ALLEGES THAT FINRA SENT BELL INFORMATION REQUESTS AND SEPARATE REQUESTS TO APPEAR TO PROVIDE ON-THE-RECORD TESTIMONY. BELL FAILED TO PRODUCE THE REQUESTED INFORMATION TO FINRA AND FAILED TO APPEAR TO PROVIDE ON-THE-RECORD TESTIMONY.

Decision

Bar (Permanent)

All Capacities

Indefinite

10/8/2014

Restitution

$19,650.00

THE RESTITUTION INCLUDES INTEREST.

DEFAULT DECISION RENDERED SEPTEMBER 10, 2014. THE SANCTIONS WERE BASED ON FINDINGS THAT BELL ENGAGED IN PRIVATE SECURITIES TRANSACTIONS. THE FINDINGS STATED THAT BELL'S SALES TO THREE OF HIS MEMBER FIRM'S CUSTOMERS OVER A TWO-YEAR TIME PERIOD TOTALED APPROXIMATELY $247,500. THE CUSTOMERS LOST NEARLY THEIR ENTIRE INVESTMENT. BELL DID NOT SIMPLY PARTICIPATE IN THE SALES TO CUSTOMERS BY REFERRING THEM TO ANOTHER PERSON OR ENTITY; INSTEAD, HE SOLD THE INVESTMENTS DIRECTLY TO THEM AND ATTEMPTED TO CONCEAL HIS SELLING AWAY ACTIVITIES BY URGING THE CUSTOMERS NOT TO TELL HIS FIRM ABOUT THEIR INVESTMENTS. THE FINDINGS ALSO STATED THAT IN VIOLATION OF THE FIRM'S POLICIES, BELL SOLICITED AND BORROWED $19,650 FROM TWO CUSTOMERS AND DID NOT REPAY THE LOANS. THE FINDINGS ALSO INCLUDED THAT BELL FAILED TO RESPOND TO REQUESTS FOR INFORMATION AND TO PROVIDE ON-THE-RECORD TESTIMONY. THE DECISION BECAME FINAL OCTOBER 8, 2014.