SEC charges former Georgia adviser with $1.86 million elder fraud

Agency claims Jay Costa Kelter used clients' money 'as own personal piggy bank.'
NOV 14, 2017

The SEC has filed charges against Georgia-based Jay Costa Kelter, a former investment adviser and broker, for defrauding three retired clients out of more than $1.86 million. From September 2013 through 2016, Kelter made misrepresentations to three clients and used their money to fund expensive purchases for himself, the Securities and Exchange Commission charged in a complaint filed in federal court in Tennessee. In 2013, after Mr. Kelter left Berthel Fisher where he was a broker, the SEC said he convinced three seniors to move their accounts to a new brokerage firm so he could continue to provide investment advice and trade on their behalf as head of his own advisory firm, BEK Consulting Partners. The clients opened new accounts at TD Ameritrade and gave Mr. Kelter access to the accounts. (More news: Finra panel bars broker for defrauding elderly client) As alleged in the complaint, Mr. Kelter sold securities in two of his clients' accounts to make unauthorized payments to his firm, and used the money "as his own personal piggy bank," buying a car, paying for personal day-to-day expenses, using one client's funds to return money to another client, and using the funds for futures and options trading in unrelated accounts. (More news: Houston RIA charged in $1.9M elder swindle gets five years) Mr. Kelter lives in Marietta, Ga., and was registered as an investment adviser representative in Florida from 1997 until November 2010. The SEC said he continued to seek registration as an investment adviser representative in Georgia until 2013, and since September 2013 has acted as an unregistered investment adviser. His BEK Consulting Partners filed for voluntary dissolution this past February.

Latest News

Married retirees could be in for an $18,100 Social Security cut by 2032, CRFB says
Married retirees could be in for an $18,100 Social Security cut by 2032, CRFB says

A new analysis finds long-running fiscal woes coupled with impacts from the One Big Beautiful Bill Act stand to erode the major pillar for retirement income planning.

SEC bars New Jersey advisor after $9.9M fraud against Gold Star families
SEC bars New Jersey advisor after $9.9M fraud against Gold Star families

Caz Craffy, whom the Department of Justice hit with a 12-year prison term last year for defrauding grieving military families, has been officially exiled from the securities agency.

Navigating the great wealth transfer: Are advisors ready for both waves?
Navigating the great wealth transfer: Are advisors ready for both waves?

After years or decades spent building deep relationships with clients, experienced advisors' attention and intention must turn toward their spouses, children, and future generations.

UBS Financial loses another investor lawsuit involving Tesla stock
UBS Financial loses another investor lawsuit involving Tesla stock

The customer’s UBS financial advisor allegedly mishandled an options strategy called a collar, according to the client’s attorney.

Trump's one big beautiful bill reshapes charitable giving for donors and advisors
Trump's one big beautiful bill reshapes charitable giving for donors and advisors

An expansion to a 2017 TCJA provision, a permanent increase to the standard deduction, and additional incentives for non-itemizers add new twists to the donate-or-wait decision.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.