Broker Sean Kelly Apparently Misused Funds, Defrauding Investors

Soreide Law Group is reviewing possible investor lawsuits against securities broker Sean Joseph Kelly (CRD#: 2294170, Marietta, Georgia). Evidently, the Financial Industry Regulatory Authority (“FINRA”) reports that 6 investors brought disputes about the securities broker, who worked for Capital Financial Services (2012 to 2017) and Center Street Securities (2017 to 2018). Not only that, but Securities and Exchange Commission (“SEC”) might bar Kelly for seemingly deceiving investors through his Lion’s Share companies. Notably, these disclosures suggest that Kelly made bad investment recommendations to clients and that he willfully violated his fiduciary responsibilities. Here’s more on the allegations against the securities broker:

Capital Financial Services Client Indicates Sean Kelly Breached Fiduciary Duty

Apparently, a client of Capital Financial Services brought FINRA Arbitration Claim #: 20-00604 on February 20, 2020. First of all, the client alleged that Sean Kelly violated federal securities laws and Georgia Securities Act. Secondly, Kelly allegedly gave poor investment advice to the client. Thirdly, the client indicated that Kelly breached a contract and his fiduciary responsibility to the client. It seems that Kelly placed his interests ahead of the client’s interests. For this reason, the client demanded $5,000+ in compensation. Evidently, this matter is pending a resolution.

Kelly Allegedly Misused Money

Evidently, a second Capital Financial Services client took aim at Sean Kelly in a Lawsuit #: 1:19-CV-4666-Lmm dated October 22, 2019. Supposedly, the securities broker misused the client’s money. It seems that Capital Financial Services and Kelly were negligent and violated Georgia Securities Act. Because of this, the client seeks compensation in this ongoing matter.

Center Street Client Indicates That Sean Kelly Sold Unsuitable Alternative Investments

Apparently, Center Street Securities received a complaint about Sean Kelly from a client on September 13, 2019. It appears that Kelly sold the client unsuitable alternative investments. It is possible that Kelly did not consider the client’s objectives, risk tolerance, needs or other suitability criteria when recommending or selling those products. Apparently, the client sustained losses on Kelly’s alternative investment sales from December 2017 to February 2018. As a result, the client demanded $155,000 in compensation. Currently, this matter is underway.

SEC Might Bar Kelly As Securities Broker

Evidently, the Securities and Exchange Commission (SEC) issued an Order in August 2019 regarding possible sanctions against Sean Kelly for allegedly deceiving investors. Apparently, a judgment was entered against Kelly enjoining him from violations of securities laws including Securities Act, Exchange Act and Advisers Act. Supposedly, from 2014 to 2018, Kelly raised more than $1,000,000 from 12+ investors. It seems that investors provided Kelly the money through his Lion’s Share entities for private placements and real estate funds among other investment vehicles. SEC indicated that Kelly misused investors’ funds on things like Super Bowl tickets and luxury vacations.

Kelly Pleads Guilty To Fraud

Evidently, in the United States District Court for the Northern District of Georgia under Criminal Case #: 1:18cr475, Sean Kelly pled guilty to 1 count of mail fraud and 1 count of securities fraud. As a result, Kelly received a 60-month sentence for each count followed by 3 years of supervised release. The securities broker was also ordered to pay restitution.

Losses From Sean Kelly?

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Have you experienced losses by investing through broker Sean Kelly? If you have, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel concerning a potential recovery of your investment losses. Soreide Law Group provides representation to clients on a contingency fee basis and advances costs. The law firm has recovered millions of dollars for clients who have experienced losses due to misconduct of securities brokers like Kelly.