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Did Richard Belz Recommend L Bonds that Led to Losses?

If Richard Belz (CRD #: 1140219) recommended GWG Holdings L Bonds to you that lost money, contact the securities attorneys of Kurta Law as soon as possible: (877) 600–0098 or email GWG Holdings has suspended payments on L Bonds and the company is the subject of an SEC investigation. Investors may be able to recover their losses that resulted from Richard Belz’s unsuitable recommendations.

Richard Belz is registered with R.F. Lafferty & Co. Investors should be aware of his disciplinary history—he has nine disclosures on his BrokerCheck record as of March 31, 2022.

Excessive Trading

Three investor disputes allege that Richard Belz executed excessive trades, also known as “churning.” Under FINRA Rule 2111, stockbrokers must recommend a suitable number of transactions. Successful trading strategies factor in the cost of executing trades—every transaction costs a small amount of money, so the investment should be able to make enough money to cover trading costs. With too many transactions, the investments would have to generate an enormous profit to break even.

FINRA identifies excessive trades using two metrics:

  1. Cost-to-Equity Ratio: The cost-to-equity ratio measures how much a portfolio would have to grow in order to generate a profit for the investor. If a portfolio has a cost-to-equity ratio of 20%, the investments must generate a 20% return to break even. If FINRA calculates a cost-to-equity ratio of 20% or more, FINRA considers that generally conclusive of excessive trading.
  1. Turnover Rate: The turnover rate shows how many times in a year one portfolio of securities is exchanged for a different portfolio of securities. Turnover rates of more than six indicate excessive trading.

Unsuitable Investments

Three disputes alleged that Richard Belz recommended unsuitable investments. Unsuitable investments also violate FINRA Rule 2111. This rule requires stockbrokers to consider their investor’s unique characteristics, including the following:

  • Financial goals
  • Investing experience
  • Risk tolerance
  • Age
  • Tax status
  • Liquidity needs—i.e., how long the investor can comfortably have their money tied up in an investment.

If a stockbroker recommends unsuitable investments, the investor may be able to recover their funds through FINRA arbitration.

Regulatory Action

FINRA alleged that Richard Belz failed to prepare and maintain accurate financial documentation on behalf of his firm.

Richard Belz entered into an Acceptance, Waiver, and Consent agreement (AWC) with FINRA in which he consented to the findings and agreed to pay a $5,000 fine.

Background Information

Richard Belz has passed the following exams:

  • Series 63 Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 General Securities Representative Examination
  • Series 27 Financial and Operations Principal Examination
  • Series 24 General Securities Principal Examination
  • Series 4 Registered Options Principal Examination

He is a registered broker in 16 states.

Richard Belz has worked with the following firms:

  • Westpark Capital (CRD #: 39914)
  • Newport Coast Securities (CRD #: 16944)
  • Regal Securities (CRD #: 7297)
  • Basic Investors (CRD #: 1187)
  • Institutional Equity Corporation (CRD #: 19628)
  • T.G. Richards and Company (CRD #: 30991)
  • Madison Chapin Assocs. (CRD #: 14483)
  • Douglas Bremen & Co. (CRD #: 13186)

Kurta Law Can Help

If you worked with Richard Belz and believe you lost money as a result of unsuitable L Bonds or other securities, do not hesitate to contact Kurta Law. Our securities attorneys have decades of experience and have successfully represented thousands of investors like you. Consultations are free and our firm only earns a fee if we win your case.