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.
Thomas Kelly: A Brief Overview
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.
Thomas Kelly: Pending Customer Complaints
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: Finance and Regulation Issues
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.
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.
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
The accusations made against Thomas Kelly are a sobering reminder of how important it is for the financial advice sector to have strict regulations and strong ethical standards. It is recommended that investors investigate their financial advisers thoroughly and consult a lawyer if they have any suspicions about wrongdoing.
