Joseph Kelly Incurs Tax Lien

Joseph Kelly (CRD #: 4560737), a broker registered with VCS Venture Securities, has incurred a tax lien, according to his BrokerCheck record, accessed on May 8, 2025. If you want to know more about his alleged conduct as a broker, read on.

Tax Lien

On March 26, 2025, Joseph Kelly incurred a tax lien of $70,683.60.

FINRA Investigation

On March 6, 2025, FINRA made a preliminary determination to recommend disciplinary action against Joseph Kelly, alleging that he engaged in unsuitable and excessive trading as well as unauthorized trading.

FINRA alleged that Joseph Kelly violated FINRA Rules 2111, 2020, and 2010, Regulation Best Interest, and Securities Exchange Act of 1934 Section 10(b) and Rule 10b-5 thereunder.

FINRA Rule 2020

FINRA Rule 2020 prohibits the use of deceptive, manipulative, and otherwise fraudulent methods to influence the purchase and sale of securities. Misrepresenting an investment’s potential returns, fees, or other features violates this rule.

FINRA Rule 2111

FINRA Rule 2111 requires that brokers tailor their investment recommendations to an investor’s profile, which describes characteristics such as their tax status, risk tolerance, and other investments.

Investors who rely on brokers for recommendations may be able to recover their losses by seeking out FINRA arbitration.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

Regulation Best Interest

Regulation Best Interest (Reg-BI) is an SEC regulation that requires brokerage firms to put their clients’ best interests first. For example, firms must conduct reasonable due diligence when researching investments to ensure their recommendations are suitable for the investor.

Securities Exchange Act of 1934

Section 10(b) of the Securities Exchange Act of 1934 bans manipulative, deceptive, and otherwise fraudulent activities relating to the securities business. Rule 10b-5 specifically prohibits false statements and omissions of fact that mislead investors.

Investor Dispute

On April 4, 2016, an investor alleged that Joseph Kelly made misrepresentations and engaged in excessive trading. The client sought $450,000 and received a settlement of $225,365.

Background Information

Joseph Kelly has passed the following exams:

• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination

Joseph Kelly is a registered broker in 26 states.

He has also worked for the following firms:

• Spartan Capital Securities (CRD#:146251)
• PHX Financial (CRD#:144403)
• National Securities Corporation (CRD#:7569)
• John Thomas Financial (CRD#:40982)
• Prestige Financial Center (CRD#:30407)
• Empire Asset Management Company (CRD#:143007)
• Aura Financial Services (CRD#:42822)
• First Montauk Securities Corporation (CRD#:13755)

Kurta Law Can Help

If you worked with Joseph 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.