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FINRA Suspends Donovan Kelly

May 11, 2022 FINRA Suspension

Donovan Kelly (CRD #: 2622366), a broker registered with Independent Financial Group, has been temporarily suspended by FINRA, according to his BrokerCheck record, accessed on May 6, 2022. If you have questions about Donovan Kelly’s conduct as a broker, read on.

FINRA Suspension

On March 16, 2022, FINRA suspended Donovan Kelly following allegations he engaged in private securities transactions without providing written notice to his firm, Independent Financial Group (IFG).

The Acceptance, Waiver, and Consent (AWC) agreement alleges Donovan Kelly recommended 19 investors purchase promissory notes in the form of securities in an oil and gas drilling company. His role allegedly included summarizing the investment and arranging for some of the investors to fund their purchases through sales and money transfers from their IFG accounts.

According to the AWC, the 19 investors included 15 IFG customers, Donovan Kelly himself, and three non-clients of IFG. In total, these individuals invested $688,000.

Donovan Kelly consented to findings that he violated FINRA Rules 3280 and 2010.

FINRA Rules 3280 and 2010

FINRA Rule 3280 requires brokers to provide written notice to their firms before they engage in private securities transactions, including disclosing their role and any compensation they will receive.

FINRA Rule 2010 holds brokers to high standards of commercial honor. Violations of Rule 3280 and many other regulations may also violate Rule 2010.

Sanctions

As a result of this action, Donovan Kelly consented to the following sanctions:

  • $10,000 fine
  • Seven-month FINRA suspension

His suspension began on April 18, 2022, and will end on November 17, 2022. You can read the full AWC filing here.

Background Information

Donovan Kelly has passed the following exams:

  • Series 65 - Uniform Investment Adviser Law Examination
  • Series 63 - Uniform Securities Agent State Law Examination
  • SIE - Securities Industry Essentials Examination
  • Series 7 - General Securities Representative Examination
  • Series 6 - Investment Company Products/Variable Contracts Representative Examination

Donovan Kelly is a registered broker in 17 states and a registered investment adviser in Montana and Texas.

In the past, he has worked for the following firms:

  • Pacific West Financial Consultants (CRD#:108728)
  • Pacific West Securities (CRD#:6390)
  • Raymond James Financial Services Advisors (CRD#:149018)
  • Raymond James Financial Services (CRD#:6694)
  • Royal Alliance Associates (CRD#:23131)
  • New England Securities (CRD#:615)

Kurta Law Can Help

If you worked with Donovan Kelly and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.