A Georgia stock broker is facing criminal and SEC administrative charges alleging that he stole $1 million from a dozen clients, including elderly widows and military veterans, using the money for luxuries including Super Bowl tickets and vacations.
Sean Kelly, 49, of Marietta, Ga., and a registered rep for Center Street Securities Inc., also is accused of falsely presenting himself to clients as both a broker-dealer and an investment advisor, according to the U.S. Securities and Exchange Administration.
The SEC's complaint alleges that Kelly used his companies, Lion's Share Financial of East Cobb, Lion's Share & Associates and Lionsshare Tax Services LLC to raise at least $1 million from 12 investors, including elderly retirees, promising that he would invest their funds in investments such as private placements and real estate funds.
"Many of Kelly’s victims are elderly retirees, and his victims include widows, veterans and people with disabilities," the SEC complaint said.
The U.S. Attorney's Office for the Northern District of Georgia has filed criminal charges against Kelly and placed him under arrest, according to the SEC.
Kelly, who has been a stockbroker for about 18 years, has been stealing money from clients since at least 2014, using recruiting techniques such as offering free tax preparation services for veterans and holding free retirement planning seminars in assisted living facilities, according to the SEC.
It wasn't a complex scheme, the agency noted, explaining that Kelly would simply receive checks from clients and deposit them into a bank account that he controlled. "Rather than investing the customer’s money, Kelly would spend it on things like mortgage payments, Super Bowl tickets and luxury vacations. He would also oftentimes withdraw large sums of cash from ATMs," according to the SEC complaint.
He's also accused of providing investors with fake portfolio summaries and fabricated statements that clients were led to believe were from companies in which they were invested, the SEC said.
The SEC added that Kelly continued to steal money from investors even after having received an SEC subpoena, and did not show up for his scheduled testimony after informing the SEC's staff that he would show up and "come clean."
U.S. District Court for the Northern District of Georgia granted the SEC's request for an asset freeze and temporary restraining order against Kelly on Friday.