Deborah Diane Burns (also known as Deborah Diane Kelley) of Piedmont California a stockbroker formerly employed by Wells Fargo Clearing Services LLC has been barred by Securities and Exchange Commission (SEC) from association with a broker or investment advisor in all capacities based upon an Order Instituting Administrative Proceedings in which Burns consented to SEC’s findings that she committed securities fraud. In the Matter of Deborah D. Kelley Administrative Proceeding File No. 3-18394 (Mar. 9, 2018).
According to the Order, between 2014 and 2016, during the time that Burns was associated with Wells Fargo Clearing services, she engaged in a scheme to defraud the New York State Common Retirement Fund. Burns ultimately pled guilty to conspiracy to commit securities fraud in violation of 18 U.S.C. § 371. United States v. Deborah Kelley (S.D.N.Y. May 30, 2017).
In the SEC’s Complaint preceding the Order, Burns was accused of having provided improper benefits to a Director of Fixed Income for New York State Common Retirement Fund as part of a pay-to-play scheme. Apparently, Burns spent approximately $20,000.00 on hotels stays, meals and concert tickets for the benefit of the Director. Burns reportedly expensed those costs without revealing the Director’s identify and without the Fund having been apprised of the benefits provided to the Director. In return, the Director reportedly enabled Burns’ broker-dealer to execute trades on the Retirement Fund’s behalf.
SEC’s Complaint further alleged that Burns received large commissions as a result of her activities involving the Director. Burns reportedly knew that the Director was forbidden from receiving Burns’ benefits, and was cognizant that the Director concealed the nature of those benefits. Consequently, SEC alleged that Burns’ conduct was violative of Securities Exchange Act of 1934 Section 10(b), SEC Rule 10b-5, as well as Securities Act of 1933 Section 17(a)(1) and 17(a)(2).
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