Thomas Kelly: Charged with Fraud Allegations (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?

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: Career History and Background

In 1997, Thomas Kelly started his career as a professional in the financial field. At this moment, he began his work. Before his 2018 arrival at Aegis Capital, he had a very lengthy career in brokerage, during which he worked at several firms.

The companies that comprised this cluster were Lerner & Co., Safina, Nichols, and Northeast Securities. Following ten years at the National Securities Corporation and eight with First Republic Group, Kelly began his present position with Aegis Capital.

Kelly worked in each of these capacities before her current position. The Financial Industry Regulatory Authority (FINRA) sanctioned First Republic’s withdrawal from the market in 2019.

This occurrence took place in 2019. National Securities was one of 48 firms whose brokers’ employment histories raised red flags in 2017, according to a Reuters investigation.

A tonne of consumer complaints have thrown Kelly’s career into disarray.

According to the BrokerCheck database maintained by the Financial Industry Regulatory Authority (FINRA), he has been named in fifteen customer complaints alleging violations of sales practices.

This encompasses a wide range of infractions, such as providing poor advice, engaging in illegal trading, and failing to uphold fiduciary duties.

Thomas Kelly: Pending Customer Complaints

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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: Resolved Claims and Historical Disputes

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.

One of the accusations that had been filed against Thomas Kelly in 2012 was dropped, and many other claims against her were closed without any further action being taken. 

The fact that Kelly’s advising practices have been accused of committing similar offenses on several occasions, such as making inappropriate recommendations and engaging in unlawful trading, is indicative of systemic problems.

Thomas Kelly: Financial and Regulatory Matters

As stated in his BrokerCheck report, Kelly is now facing further challenges in his work life as a result of a recent judgment or lien against him that is around $2.4 million in value. 

His tasks are made more difficult by this financial burden, which may also affect his capacity to fulfill his commitments to regulatory agencies and customers.

Aegis Capital has more shady brokers besides Thomas Kelly. Also cited in various client disputes are other financial advisers working for the company, including Alan Zelig Appelbaum, Michael Fasciglione, and Paul Falcon, amongst others. 

Not only does Fasciglione have a record of 13 customer complaints, but Appelbaum has a total of sixteen disclosures on his record, including at least twelve customer disputes. 

The Financial Industry Regulatory Authority (FINRA) banned Falcon for thirty days earlier this year and has six investor grievances listed. 

Aegis Capital’s supervisory and compliance processes may have certain possible flaws, as shown by this trend.

Rules and the Safety of Investors

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.

Legal Action for Affected Investors

Investors may seek compensation via arbitration or legal action if they think Kelly’s purported misbehavior has caused them to incur losses. Affected investors may seek justice without having to pay anything up front thanks to the assessments that securities arbitration companies often provide and the possibility of working on a contingency fee basis.

Conclusion

Aegis Capital Corp. financial advisor Thomas Kelly had many customer disputes alleging inappropriate investments, illegal trading, and reckless activities during his 20-year career.

Kelly’s career has been tarnished by claims and consumer complaints despite her experience at National Securities and Northeast Securities.

Thomas Kelly faces unresolved charges of unsuitability, fiduciary breaches, and illicit trading from 2018. Kelly has also resolved several cases for large sums, showing a pattern of questionable conduct.

Recently, a $2.4 million lien has made it harder for Kelly to satisfy regulatory and client duties. Since additional Aegis Capital advisors have major client complaints and regulatory proceedings, the business looks to have wider compliance difficulties.

Financial advice requires strong ethical standards and regulatory control, as shown by the case. Investors should thoroughly study their advisors, monitor their finances, and sue if abused. Kelly’s position shows the need for ongoing inspection and regulatory compliance to safeguard investors and market integrity.