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.


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