- June 27, 2020
- Aegis Capital Corp
Thomas Edison Kelly, Jr. (CRD #2877415) was a Financial Advisor at Aegis Capital Corp. in New York, NY. Thomas Kelly has been in the securities industry since 1997 and previously worked at First Republic Group.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), Thomas Kelly has been the subject of fifteen (15) customer complaints during his career, alleging sales practice misconduct. Among the customer complaints against Thomas Kelly include the following:
• March 2020—”TIME FRAME: UNSPECIFIED. CLAIMANT ALLEGES UNSUITABILITY, BREACH OF CONTRACT, BREACH OF FIDUCIARY DUTY.” Alleged damages are $50,000 and the matter remains pending.
• February 2020—”SUITABILITY, NEGLIGENCE, MISREPRESENTATION & OMISSIONS.” Alleged damages are $33,000 and the matter remains pending.
• November 2018—”SUITABILITY, UNAUTHORIZED TRADING, BREACH OF FIDUCIARY DUTY AND NEGLIGENCE.” Alleged damages are $500,000 and the matter remains pending.
• October 2018—”TIME FRAME: UNSPECIFIED. CLAIMANT ALLEGES MISREPRESENTATION, NEGLIGENCE, BREACH OF FIDUCIARY DUTY.” The customer was awarded $30,000.
• August 2018—”TIME FRAME: UNSPECIFIED. CLAIMANT ALLEGES UNSUITABLE RECOMMENDATIONS, MISREPRESENTATIONS, OMISSIONS, BREACH OF FIDUCIARY DUTY, NEGLIGENCE AND BREACH OF CONTRACT.” The matter was settled for $200,000.
• June 2009—”EXCESSIVE TRADING, FALSE & MISLEADING STATEMENTS, FRAUD, NEGLIGENCE, MISREPRESENTATION, BREACH OF FIDUCIARY DUTY.” The matter was settled for $14,000.
• December 2008—”MISREPRESENTATION, VIOLATION OF ARIZONA SECURITIES ACT, VIOLATION OF FEDERAL SECURITIES LAW, BREACH OF CONTRACT, AND UNSUITABILITY.” The matter was settled for $18,000.
• June 2006—”SUITABILITY, EXCESSIVE TRADING AND COMMISSIONS.” The matter was settled for $88,000.
• January 2005—”CHURNING, UNSUITABLE TRANSACTIONS.” The matter was settled for $75,000.
For a copy of Thomas Kelly’s CRD, click https://brokercheck.finra.org/individual/summary/2877415#disclosuresSection
Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.
Reasonable basis suitability requires that a recommended investment or investment strategy be suitable or appropriate for at least some investors. Reasonable basis suitability requires an advisor to conduct adequate due diligence so that he or she can determine the risks and rewards of the investment or investment strategy.
Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the obligation.
Customer-specific suitability requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Among the criteria that a financial advisor must evaluate to satisfy his or her customer-specific suitability obligations include the investor’s:
• Other investments
• Financial situation and needs
• Tax status
• Investment objectives
• Time horizon
• Liquidity needs
• Risk tolerance
• Any other information disclosed by the customer
The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at 800.931.8452 or by email at email@example.com.