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Kevin Kelly Facing Two Six-Figure Disputes

Kevin Kelly (CRD #: 2293119), a broker registered with Avantax Investment Services, is the subject of two investor disputes. These disclosures appear on his BrokerCheck record, accessed on October 20, 2021. Details regarding these disputes are provided below. 

On August 31, 2023, investors alleged that Kevin Kelly recommended unsuitable investments. The investors are seeking $585,000. 

There is another dispute from the same month. On August 22, 2023, an investor alleged that Kevin Kelly made purchases in her account that were unsuitable and/or unauthorized. The investor is seeking $392,914.69. 

FINRA Rule 2111 

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals.

Some common violations of this rule include:

  • Excessive trading, which violates the need for quantitative suitability. This means that the number of trades must suit an investor’s goals. Excessive trading is also known as “churning.” 
  • Recommendations of unsuitable investment strategies. For instance, overconcentration of securities in a certain stock or sector is typically unsuitable due to the degree of risk.
  • Recommendations of high-risk or illiquid investments. These investments may lead to high fees for the investor.

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

FINRA Rule 3260

FINRA Rule 3260 limits discretionary trading by brokers to pre-approved discretionary accounts. These accounts must be approved for discretionary trading by both the client and the firm. Discretionary trading that takes place in an account that has not been approved is unauthorized.

Background Information 

Kevin Kelly has passed the following exams: 

  • Series 66 Uniform Combined State Law Examination 
  • Series 63 Uniform Securities Agent State Law Examination 
  • SIE – Securities Industry Essentials Examination 
  • Series 31 Futures Managed Funds Examination 
  • Series 7 General Securities Representative Examination 

He is a registered broker in 35 states and is a registered investment adviser in Georgia. 

During his 16 years of experience, Kevin Kelly has registered with seven firms: 

  • Avantax Investment Services (CRD #: 13686) 
  • Avantax Advisory Services (CRD #: 104556) 
  • LPL Financial (CRD #: 6413) 
  • IFG Advisory (CRD #: 168012) 
  • Legacy Capital Advisors (CRD #: 168728) 
  • Ameriprise Financial Services (CRD #: 6363)
  • IDS Life Insurance Company (CRD #: 6321) 

Kurta Law Can Help

If you worked with Kevin Kelly and have concerns about your investments, please contact us today at 877-600-0098 or 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 that 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.