Thomas Kelly: Charged by FINRA? Exposed! (2024)

Aegis Capital Corp.’s financial adviser Thomas Edison Kelly, Jr. is now entangled in several client disputes, each of which accuses Thomas Kelly of different types of sales practice wrongdoing. Accusations against Kelly include improper investments, unlawful trading, and irresponsibility during his twenty-plus year employment. But first, let’s learn a little bit about his character.

Who is Thomas Kelly? ( CRD #2877415)

After working in the securities field for over twenty years, Thomas Kelly became a seasoned financial counselor and broker. Kelly has had an impressively long and varied career in finance, and she is now a financial adviser in New York City with Aegis Capital Corp. 

He started his career in finance in 1997 and has since worked for notable brokerage companies such as National Securities Corporation, Northeast Securities, Nichols, Safina, Lerner & Co., and Northeast.

Thomas Kelly has become well-known for his vast understanding of investing methods and financial markets throughout his time here. A slew of client conflicts and accusations of wrongdoing, however, have cast a shadow over his career. 

Among these concerns are allegations of improper trading, inappropriate financial advice, and betrayal of trust. Clients and regulators alike have been looking closely at the many settlements and ongoing litigation that have arisen from these claims.

Thomas Kelly has handled the intricacies of client relationships and regulatory duties with poise and determination, allowing him to retain his position in the business despite these hurdles. The ups and downs of his career path mirror the challenges and possibilities that financial advisers encounter in a constantly changing regulatory environment.

Thomas Kelly: Background and Career History

Thomas Kelly began working as a securities sector professional in 1997. His job started at this point. He had a long and storied career in brokerage, having worked for several organizations until joining Aegis Capital in 2018. 

Northeast Securities, Safina, Nichols, and Lerner & Co. were the firms that made up this group. Kelly worked for 10 years at the National Securities Corporation and for eight years at First Republic Group before starting his current role at Aegis Capital. 

Before her present role, Kelly held both of these jobs. First Republic was forced to exit the market in 2019 by the Financial Industry Regulatory Authority (FINRA). 

This incident occurred in the year 2019. In 2017, Reuters discovered that 48 companies had brokers with red flags on their work records, and National Securities was one of those companies.

The many complaints from customers have completely disrupted Kelly’s professional life. 

The Financial Industry Regulatory Authority’s (FINRA) BrokerCheck database shows that he has been the subject of fifteen consumer complaints accusing him of violating sales practices. 

This includes transgressions including giving bad advice, breaking the law while trading, and breaching fiduciary obligations.

Client Concerns Regarding Thomas Kelly

(Source)

At this time, three consumer complaints against Thomas Kelly have not been resolved:

• March 2020:  An accusation of unsuitability, violation of fiduciary responsibility, and breach of contract has been made against Kelly by a client back in March 2020. During the ongoing disagreement, a claim for damages for $50,000 has been made.

• February 2020: This case is based on accusations of carelessness, unsuitability, misrepresentation, and omissions, and the claimed damages amounting to $33,000. This case is still being investigated.

• November 2018: In November 2018, the client asserted that they were subjected to unlawful trading, unsuitability, violation of fiduciary responsibility, and carelessness. This issue, which seeks damages of $500,000, has likewise not been addressed.

Kelly’s compliance with regulatory standards and ethical responsibilities toward his customers is a source of ongoing worry, as shown by the complaints that have not been resolved even though they have been taken into consideration.

Thomas Kelly: Settlements and Past Conflicts

Thomas Kelly has been identified as the subject of additional complaints that have been addressed on top of the existing legal processes. These complaints include the following:

• August 2018: A $200,00 settlement was reached in a dispute involving inappropriate recommendations and other breaches of sales practices.
• October 2018: Kelly personally paid a $30,000 settlement in a dispute including allegations of deception, carelessness, and violation of fiduciary responsibility.
• June 2009: A $14,000 settlement was reached on accusations of excessive trading, fraud, carelessness, and misrepresentation.
• December 2008: A dispute including breach of contract, unsuitability, and breaches of the Arizona Securities Act and federal securities laws was resolved for $18,000.
• June 2006: An $88,000 settlement resulted from allegations of inappropriate trading and hefty commissions.
• January 2005: A $75,000 settlement was reached to resolve a complaint claiming churning and inappropriate transactions.

Several allegations that had been made against Thomas Kelly were dismissed in 2012 without any further investigation being conducted. It was determined that just one of the allegations was false.

Because Kelly’s consulting services have been linked to other charges of similar violations, such as participating in illegal trading and making improper recommendations, there is a possibility that there are systemic issues.

Thomas Kelly: Finance and Regulation Issues

It is noted in his BrokerCheck report that Thomas Kelly is now dealing with further difficulties in his professional life as a consequence of a recent judgment or lien that has been filed against him and has a value of around $2.4 million.

His responsibilities are rendered more challenging as a result of this financial load, which may also have an impact on his ability to meet his promises to regulatory authorities and clients.

Other than Thomas Kelly, Aegis Capital has many other questionable brokers. In addition, additional financial advisors who work for the organization, such as Alan Zelig Appelbaum, Michael Fasciglione, and Paul Falcon, amongst others, have been named in many customer disputes.

Appelbaum has a total of sixteen disclosures on his record, including at least twelve customer disputes, in addition to Fasciglione’s record of thirteen customer complaints. Fasciglione’s record includes thirteen customer complaints.

A restriction on Falcon for thirty days was issued by the Financial Industry Regulatory Authority (FINRA) earlier this year. Additionally, there are six investor complaints recorded.

Considering this tendency, it is probable that the supervisory and compliance procedures used by Aegis Capital have many potential problems.

Regulations and Investor Protection

Financial advisers are legally obligated to guarantee that the investment suggestions they provide to their customers are appropriate for the particular requirements and circumstances of their client’s financial situations. 

To determine whether or not investment methods are suitable, they are required to carry out exhaustive due diligence. This requirement includes three primary areas of appropriateness, which are as follows:

• Reasonable Basis Suitability: After doing sufficient due research, advisors are required to guarantee that an investment plan is appropriate for a minimum of some investors.
• Quantitative Suitability: When evaluating a sequence of transactions in the context of a client’s investment profile, advisors in charge of the client’s account must make sure they are neither excessive nor inappropriate.
• Customer-Specific Suitability: Advisors are responsible for making sure suggestions are appropriate for a given client based on that client’s specific financial situation and investing goals.

Investors may be able to pursue legal recourse if they suffer substantial financial losses as a result of their failure to fulfill these responsibilities.

Investors’ Legal Action

If they believe that Kelly’s alleged misconduct has resulted in losses for them, investors have the option of seeking compensation via arbitration or taking legal action. Through the evaluations that securities arbitration organizations often provide and the potential of working on a contingency fee basis, affected investors have the opportunity to seek justice without having to pay anything upfront.

Conclusion

In conclusion, the significant claims that have been made against Thomas Kelly bring to light the need for strict laws and high ethical standards in the field of financial advice services.

Investors are strongly encouraged to perform thorough research on their financial advisors, to maintain vigilance over their financial activities, and to pursue legal remedies if they have any suspicions of unethical behavior.

It is essential to uphold these standards to safeguard the interests of investors, preserve confidence in the financial markets, and guarantee the integrity of the profession of financial advice.