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

JPMorgan mulls new asset lending scheme aimed at crypto ETF investors
JPMorgan mulls new asset lending scheme aimed at crypto ETF investors

Insiders say the Wall Street giant is looking to let clients count certain crypto holdings as collateral or, in some cases, assets in their overall net worth.

Fintech bytes: Future Capital adds RayJay alum to C-suite, Advyzon welcomes ex-Envestnet leader
Fintech bytes: Future Capital adds RayJay alum to C-suite, Advyzon welcomes ex-Envestnet leader

The two wealth tech firms are bolstering their leadership as they take differing paths towards growth and improved advisor services.

UBS 'wrongfully' fired Idaho advisor in 2021: FINRA panel
UBS 'wrongfully' fired Idaho advisor in 2021: FINRA panel

“We think this happened because of Anderson’s age and that he was possibly leaving,” said the advisor’s attorney.

Cetera Trust hires Fidelity vet Kerri Scharr for chief fiduciary officer role
Cetera Trust hires Fidelity vet Kerri Scharr for chief fiduciary officer role

The newly appointed leader will be responsible for overseeing fiduciary governance, regulatory compliance, and risk management at Cetera's trust services company.

Trump's 'revenge tax' might come back to bite US borrowers, experts say
Trump's 'revenge tax' might come back to bite US borrowers, experts say

Certain foreign banking agreements could force borrowers to absorb Section 899's potential impact, putting some lending relationships at risk.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave

SPONSORED The evolution of private credit

From direct lending to asset-based finance to commercial real estate debt.