SEC News
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- SEC Names Lona Nallengara as Chief of Staff May 15, 2013FOR IMMEDIATE RELEASE2013-88 Washington, D.C., May 15, 2013 — The Securities and Exchange Commission today announced that Lona Nallengara has been named the agency’s chief of staff. Mr. Nallengara came to the SEC in March 2011 and served as deputy director for legal and regulatory policy in the Division of Corporation Finance until he was appointed in Decemb […]
- SEC Charges China-Based Executives in Scheme to Overstate Revenues and Divert Money for Personal Use May 15, 2013FOR IMMEDIATE RELEASE2013-87 Washington, D.C., May 15, 2013 — The Securities and Exchange Commission today charged husband-and-wife executives at a China-based company with engaging in a scheme to overstate the company’s revenues and divert proceeds from a securities offering for their personal use. Additional Materials SEC Complaint The SEC alleges that RIN […]
- SEC, FINRA Issue Investor Alert On Pension or Settlement Income Streams May 9, 2013FOR IMMEDIATE RELEASE2013-86 Washington, D.C., May 9, 2013 — The Securities and Exchange Commission and the Financial Industry Regulatory Authority (FINRA) today issued an investor alert entitled Pension or Settlement Income Streams – What You Need to Know Before Buying or Selling Them. The investor alert informs investors about the risks involved when selli […]
TAG | broker concealing fraud
Thomas Edward Kelly (CRD #1386403, Registered Principal, Johnson City, New York)
was barred from association with any FINRA member in any capacity. Without admitting or denying the findings, Kelly consented to the described sanction and to the entry of findings that he engaged in a scheme to defraud investors, including firm customers, of funds totaling approximately $1 million.
FINRA reported that Kelly’s scheme involved persuading potential investors to invest in an entity, which was not a firm-approved entity. Kelly did not inform investors that he was the principal owner of the entity, nor did he inform his firm of his activities with the entity or that he was recommending that customers invest in it. Kelly falsely represented to the investors that they were purchasing safe and stable investments, including “FDIC insured” CDs and savings accounts.
These FINRA findings also stated that to conceal his fraud, Kelly provided investors with fictitious account statements and tax Forms-1099, which falsely purported to reflect a return on their investments. Through these misrepresentations, Kelly converted approximately $1 million from the investors for his own use, including repaying earlier investors, investing in the stock market and paying personal expenses.
The findings also included that the firm reimbursed these customers for their stated account values, which equaled approximately $1 million. Kelly did not contribute to the payments.
A criminal complaint was filed against Kelly in the United States District Court for the Northern District of New York in connection with this conduct.
(FINRA Case #2010025344701)
This information was found on FINRA’s website under “Disciplinary and Other FINRA Actions, June, 2012.
Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, has represented clients nationwide. Call for a free consultation on how to potentially recover your financial losses. To speak with an attorney call 888-760-6552, or visit our website at: http://www.securitieslawyer.com.
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