Sean Joseph Kelly, of Marietta, Georgia, a stockbroker formerly registered with Center Street Securities Inc., is identified in a customer initiated investment related, FINRA Securities Arbitration claim in which the customer sought $160,000.00 in damages based upon accusations of misrepresentations and unsuitable investments by Kelly regarding alternative investments sold to the customer while Kelly was employed by Capital Financial Services and Center Street Securities. Financial Industry Regulatory Authority (FINRA) Arbitration No. 21-02842 (November 24, 2021). According to the claim, the securities broker dealers failed to supervise. The claim also contains allegations of breach of fiduciary duty.
FINRA Public Disclosure shows that Kelly has been identified in nine more customer initiated investment related disputes regarding accusations of his misconduct during the time that he was employed by Center Street Securities and Capital Financial Services Inc. Kelly is the subject of a customer initiated investment related arbitration claim in which the customer requested $155,000.00 in damages based upon allegations that between December of 2017 and February of 2018, the customer was sold four unsuitable alternative investments.
On October 20, 2020, a customer filed an investment related arbitration claim involving Kelly’s activities where the customer requested $150,000.00 in damages supported by accusations of unsuitable alternative investments through Kelly at Capital Financial Services and Center Street Securities. FINRA Arbitration No. 20-03497.
On August 30, 2021, a customer initiated investment related arbitration claim regarding Kelly’s conduct was resolved for $65,000.00 in damages founded on allegations of the customer being placed into unsuitable alternative investments when Kelly was registered with Center Street Securities. FINRA Arbitration No. 20-02785.
Kelly is also referenced in a customer initiated investment related arbitration claim in which Capital Financial Services and Capital Financial Holdings, among others, were ordered to compensate multiple customers after an Arbitration Panel found that the securities broker dealers were liable on the customers’ claims, including negligence, breach of contract, breach of fiduciary duty, and violation of Georgia Uniform Securities Act. FINRA Arbitration No. 20-02358 (October 29, 2021).
Kelly is the subject of another customer initiated investment related arbitration claim in which Capital Financial Services was found liable on the customer’s causes of action and ordered to pay $88,760.00 in compensatory damages and $88,760.00 in punitive damages. FINRA Arbitration No. 20-00604 (November 1, 2021). According to the claim, the customer experienced damages by investing in illiquid and unsuitable private placement offerings, which included Shopoff Commercial Growth and Income Fund III LP and GPB Holdings II LP. The Statement of Claim alleges breach of fiduciary duty, negligence, breach of contract, violation of Georgia Securities Act, violation of federal securities laws, and fraud.
On October 25, 2018, Kelly was charged by SEC with engaging in a fraudulent scheme using companies Lion’s Share Financial of East Cobb Inc., Lionsshare Tax Services, LLC, and Lion’s Share Associates Inc. On July 11, 2019, SEC obtained a judgment that permanently enjoined Kelly from engaging in violation of Securities Exchange Act of 1934 Section 10(b), Securities Act of 1933 Section 17(a), and Investment Advisers Act of 1940 Sections 206(1) and (2). Civil Action No. 1:18-CV-4939.
On June 17, 2019, Kelly received a 60-month federal prison sentence after pleading guilty to securities fraud. Criminal Action No. 1:18cr475. According to the United States Attorney’s Office, between January of 2014 and October of 2018, 18 investors were collectively defrauded by Kelly out of $1,400,000.00. Investors were advised by Kelly to invest in annuities, private placements, real estate investment trusts, and other investment funds. Kelly did not invest their funds. Instead, he used their money for his expenses, including vacations and Super Bowl tickets.
Kelly was associated with Capital Financial Services Inc. between August 17, 2012, and August 15, 2017. He was employed by Center Street Securities between August 15, 2017, and October 25, 2018.