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Tuesday, June 19, 2018

BREAKING NEWS! Indicted Grand Blanc Investment Adviser Jason Bescoe Michigan Securities Registration Revoked; Final Order Also Revokes Registration Of Bescoe's Firm, Research Money Managment, LLC

As Sally explained to Linus in the classic, "A Charlie Brown Christmas," all she wants is what's coming to her. 

Today, Michigan's Department of Licensing and Regulatory Affairs (LARA) delivered what was coming to Jason Bescoe when it pulled the proverbial football away from Grand Blanc's shiny-scalped Ponzi schemer—issuing a Final Order revoking his registration as a Michigan investment adviser representative and the registration Research Money Management, LLC (RMM), Bescoe's investment adviser firm.

In a news release issued this afternoon, Julia Dale, Director of LARA’s Corporations, Securities & Commercial Licensing Bureau (CSCL), stated “the Michigan Uniform Securities Act (the Act) prohibits dishonest or unethical practices in the securities industry. Our bureau will continue to take strong regulatory actions to protect the public. Consumers should always have a clear understanding of long- and short-term investments and the risk involved. Frequently monitor your investments to avoid any potential for substantial losses.”

An investigation by CSCL found evidence that Bescoe and RMM failed to update their registration applications and public disclosure information, as required by the Act and the terms of their conditional registrations; engaged in fraud in the provision of investment advice; unlawfully accepted custody of client funds; convinced investment advisory clients to transfer approximately $300,000 to an entity not registered under the Act to perform the promised services; and, made multiple and repeated false statements to CSCL in registration documents, public disclosure documents concerning Bescoe’s outside business activities, and quarterly reports and other documents and information required to be submitted as part of their conditional registrations. 

The investigation led CSCL to issue an Order to Cease and Desist; an Order Summarily Suspending Investment Adviser and Investment Adviser Representative registrations; and a Notice of Intent to Revoke Investment Adviser and Investment Adviser Representative registrations against Bescoe and RMM. 

Bescoe is the managing member and the sole employee of RMM. CSCL also made a criminal referral to the appropriate law enforcement authority. Bescoe and RMM admitted to all of the allegations in the Notices of Intent and Orders of Summary Suspension, and Notices and Orders to Cease and Desist, agreeing to the revocation of their respective registrations. The revocations are effective immediately.

Bescoe was arraigned on August 19, 2017 on a felony charge of embezzlement of $100,000 or more, a 20-year felony. Later, on September 6, 2017, Bescoe was charged with intimidating a witness and assault and battery. Proceedings in those cases continue.

You're a blockhead, Jason Bescoe!

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