On October 25, 2018, the SEC obtained a court order to halt the alleged fraudulent actions of a registered stock broker and his companies.
The complaint by the SEC states that Sean Kelly used his companies, Lion’s Share Financial of East Cobb, Inc., Lion’s Share and Associates, Inc., and Lion Share Tax Services, LLC, to raise $1 million from a variety of investors. There were 12 investors, which included retirees. Kelly promised he would invest their funds into different investment products, but his promise was a lie. Instead of investing their funds into private placements and real estate, he used it on his own personal expenses. He continued to steal their money after receiving a SEC subpoena, and didn’t show up to his scheduled testimony. He used their money to buy Super Bowl tickets, expensive vacations, and also for cash withdrawals. The SEC alleges that Kelly has engaged in this fraud scheme since 2014, when he was still affiliated with Capital Financial Services.
Kelly was a representative of Center Street Securities from August 2017 to October 2018. He worked with Capital Financial Services from August 2012 to August 2017 in Marietta, Georgia. His records show that he filed for bankruptcy twice, in 2009 and in 2014.
Firms like Center Street Securities and Capital Financial Services are obligated to supervise all their representatives who are registered to practice law through their firm. Since they have failed to supervise Kelly, they may be liable for investment losses sustained by customers.
The U.S. Attorney’s Office for the Northern District of Georgia filed criminal charges against Kelly, and arrested him on October 26th. The SEC charged him with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and (2) of the Investment Advisers of 1940. Its complaint also charges Kelly’s companies with some of the same violations.
Silver Law Group represents investors in claims against stockbrokers. Unfortunately, we have seen this scenario too many times where a financial advisor rips off his clients to help fund his own expensive lifestyle. If you have questions regarding your potential for recovery or legal rights, please contact Scott Silver or the Silver Law Group for a complimentary consultation at email@example.com or toll-free at (800) 975-4345.