Joseph Kelly Allegedly Executed Unauthorized Trades

Joseph Kelly (CRD #: 4560737), a broker registered with Spartan Capital Securities, allegedly engaged in unauthorized and excessive trading, according to his BrokerCheck record, accessed on March 8, 2023. If you want to know more about his alleged conduct as a broker, read on.

Investor Disputes

In a pending dispute filed on December 10, 2021, an investor alleged that Joseph Kelly executed unauthorized trades, made misrepresentations, and engaged in excessive trading and other violations of the suitability rule from February 2013 to the date of filing. The dispute further alleges failure to supervise during this period. The client seeks $844,107.44 in damages.

On January 28, 2020, a dispute alleged Joseph Kelly engaged in misrepresentation and made unsuitable recommendations.

This dispute was settled outside of arbitration for $94,750. You can read a copy of the arbitration agreement here.

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.

FINRA Rule 3260

FINRA Rule 3260 prohibits brokers from conducting discretionary trading outside accounts approved in advance by their client and firm.

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 3110

FINRA Rule 3110 requires that firms establish systems of supervision to maintain their compliance with securities regulations. Firms must ensure that supervisory personnel have the training or experience necessary for their role and provide them with Written Supervisory Procedures (WSPs).

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 33 states.

He has also worked for the following firms:

• 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.