Sean Joseph Kelly of Marietta Georgia a stockbroker formerly registered with Center Street Securities Inc. and the Chief Executive Officer of Lion’s Share Financial has been charged by Securities and Exchange Commission (SEC) in a Complaint alleging that Kelly defrauded twelve investors who provided him money through Lion’s Share to invest in alternative investments. Securities and Exchange Commission v. Sean Kelly et al. Civil Action No. 1:18-cv-04939-TCB.
According to the Complaint, Kelly engaged in fraudulent activities using the companies he created, including Lion’s Share & Associates, Inc., Lion’s Share Financial of East Cobb, Inc., and Lionsshare Tax Services, LLC. Apparently, since 2014, at least twelve Lion’s Share customers provided Kelly a total of $1,000,000.00 to invest in real estate funds, private placements, and certificates of deposit.
The Complaint stated that instead of investing the investors’ funds as promised, Kelly converted the customer’s funds by using the money to pay for luxurious vacations and Super Bowl Tickets. Other times, Kelly allegedly just took the money through cash withdrawals. Allegedly, the majority of Kelly’s customers were elderly – they also included disabled persons, veterans and widows.
SEC alleged that Kelly considered the money invested in Lion’s Share as his own “piggy bank,” where he would move several hundred thousand dollars of their funds into accounts that were controlled by Kelly so that he could fund his lavish lifestyle. The Complaint stated that a substantial amount of cash had been withdrawn from their accounts while he engaged in this fraudulent scheme.
Allegedly, Kelly continued stealing funds from his elderly clients after SEC representatives interviewed him. Kelly purportedly continued taking money from investors after he received a subpoena from SEC’s Enforcement Division. SEC also revealed that Kelly failed to testify before SEC personnel even though he reportedly claimed to SEC’s staff that he would testify and be completely honest about his activities.
SEC alleged that Kelly’s conduct is violative of Securities Exchange Act of 1934 Section 10(b), Rule 10b-5, Securities Act of 1933 Section 17(a), and Investment Advisers Act Section 206. In a parallel action, Kelly is the subject of criminal charges that have been brought by the United States District Attorney’s Office for the Northern District of Georgia.
Kelly’s registration with Center Street Securities Inc. was terminated on October 25, 2018.
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