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Thomas Kelly Allegedly Executed Unauthorized and Excessive Trades

Jul 5, 2022 Excessive Trading

Thomas Kelly (CRD #: 2877415), a broker registered with Aegis Capital, is involved in a dispute concerning suitability, according to his BrokerCheck record, accessed on April 5, 2023. Read on to learn more about Thomas Kelly’s conduct as a broker.

Tax Liens

On January 31, 2023, Thomas Kelly was subject to a $292,439.68 tax lien.

In 2021 and 2020, he was subject to two tax liens totaling $3,722,611.61.

Pending Investor Disputes

On December 15, 2022, an investor alleged that Thomas Kelly engaged in the following forms of misconduct:

The client seeks $60,129 in damages.

On June 27, 2022, an investor alleged that Thomas Kelly overconcentrated an investor’s account in certain private placements and failed to conduct his due diligence. The investor is seeking $300,000. 

On April 18, 2022, an investor alleged that Thomas Kelly recommended an investment in American Realty Capital New York City Real Estate Investment Trust (ARC NYC REIT), which was unsuitable for the client. The investor seeks $200,000 in damages.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to take into account whether an investment fits their investor’s financial goals when making a recommendation. Brokers evaluate the information described in an investor’s profile, such as their tax status, age, and investment goals.

Investors who believe their losses were caused by unsuitable investment recommendations may potentially be able to recover their funds through FINRA arbitration.

FINRA Rules 2020 and 3260

The misrepresentation and omission of information violate FINRA Rule 2020, which bans the use of manipulative, deceptive, and otherwise unethical means of influencing investors’ decisions.

Unauthorized trading violates FINRA Rule 3260, which limits discretion to pre-approved discretionary accounts. Brokers must receive approval from their client and their firm before exercising discretion. 

What is broker negligence?

Many broker behaviors can qualify as negligent, from omitting material information to committing excessive or unauthorized trades. Investors who feel their losses were caused by broker negligence may be able to recover their losses by pursuing FINRA arbitration.

What is a real estate investment trust?

A real estate investment trust (REIT) allows investors to earn dividends from real estate without needing to manage any properties themselves; the REIT purchases and maintains the real estate. While this is convenient for investors, the illiquid nature of REITs makes them unsuitable for many investors.

Settled Disputes

Three disputes, filed from 2018-2020, collectively alleged that Thomas Kelly executed unauthorized trades, recommended unsuitable investments, misrepresented and omitted information, breached his contract, and engaged in negligence. They were settled for a total of approximately $865,000.

Background Information

Thomas 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

Thomas Kelly is a registered broker in 24 states and the District of Columbia.

He has also worked for the following firms:

  • National Securities Corporation (CRD#:7569)
  • First Republic Group (CRD#:39781)
  • Northeast Securities (CRD#:25996)
  • Nichols, Safina, Lerner & Company (CRD#:35476)

Kurta Law Can Help

If you worked with Thomas Kelly and you 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 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.