Sean Joseph Kelly of Marietta Georgia a stockbroker formerly registered with Center Street Securities is the subject of a customer initiated investment related arbitration claim in which the customer requested $225,000.00 in damages based upon accusations of unsuitable alternative investments being sold to the customer during the period that Kelly was associated with Center Street Securities. Financial Industry Regulatory Authority (FINRA) Arbitration No. 20-02785 (Sept. 1, 2020).
FINRA Public Disclosure reveals that Kelly has been identified in seven additional customer initiated investment related disputes involving allegations of his misconduct during the time that he was employed by Capital Financial Services, Securities America Inc. and Center Street Securities. On September 8, 2017, a customer filed an investment related complaint involving Kelly’s conduct where the customer sought $100,000.00 in damages supported by accusations that features of a variable annuity had been misrepresented when Kelly was associated with Securities America.
Kelly is referenced in a different customer initiated investment related written complaint on November 27, 2018 in which the customer requested more than $5,000.00 in damages supported by allegations of false guarantees regarding the annual returns on a Jackson National variable annuity that Kelly sold to the customer while at Capital Financial Services. On September 13, 2019, another customer filed an investment related complaint involving Kelly’s activities where the customer sought $155,000.00 in damages based upon accusations that the Center Street Securities customer was placed into four alternative investments which failed to be suitable.
Kelly is also identified in a customer initiated investment related civil action that was brought in the United States District Court for the Northern District of Georgia in which the customer requested more than $5,000.00 in damages founded on allegations of the stockbroker’s negligence and theft of the customer’s assets. Civil Action No. 1:19-cv-4666-lmm (Oct. 22, 2019). The claim alleges that Georgia Uniform Securities Act was violated by the stockbroker during the time that he was registered with Capital Financial Services.
On March 2, 2020, another customer filed an investment related arbitration claim involving Kelly’s conduct where the customer sought more than $5,000.00 in damages supported by accusations of a breach of a contract between the customer and the securities broker dealer and the violation of a fiduciary obligation to the customer. FINRA Arbitration No. 20-00604. According to the claim, Kelly poorly advised the customer regarding real estate securities, DPPs and LPs. The claim also alleges the violation of federal securities laws as well as Georgia Securities Act.
Kelly is the subject of another customer initiated investment related arbitration claim in which the customer requested more than $5,000.00 in damages supported by allegations of Kelly’s negligence as well as his breach of both a fiduciary duty and a contract causing the Capital Financial Services customer to experience losses. FINRA Arbitration No. 20-02358 (July 30, 2020).
The United States Attorney’s Office reveals that Kelly has been sentenced to five months in prison for securities fraud where he stole at least $1,400,000.00 from 18 customers. Criminal Action No. 1:18cr475 (N.D. Ga. June 17, 2019). The stockbroker took advantage of elderly veterans and citizens, failing to fulfill his fiduciary responsibility to them. The United States Attorney’s Office noted that between January of 2014 and October of 2018, investors were defrauded by purchasing real estate investment trusts, investment funds, annuities and private placements through Kelly. The stockbroker did not use the customers’ assets for investment purposes. He instead used it to pay for things like vacations and his mortgage.
Securities and Exchange Commission (SEC) also obtained a court order stopping Kelly from continuing to defraud customers through his companies including Lion’s Share Financial. SEC v. Sean Kelly et al. Case No. 1:18-cv-4939 (N.D. Ga. July 11, 2019). SEC alleges that Kelly violated Securities Exchange Act of 1934 Section 10(b), SEC Rule 10b-5 and Investment Advisers Act of 1940 Section 206(1) and (2).
Kelly’s registration with Center Street Securities was terminated on October 25, 2018.
