Former Capital Financial Services, Inc. financial advisor Sean Kelly (CRD# 2294170) is accused of orchestrating $1 million Lion’s Share fraud. Kelly was registered with Center Street Securities, Inc. in Marietta, Georgia from August 2017 to October 2018. Previously, Kelly was registered with Capital Financial Services, Inc. in Marietta, Georgia from 2012 to 2017.
In October 2018, The United States Securities and Exchange Commission (SEC) opened a complaint regarding a fraudulent scheme by Kelly and various entities that he operates under Lion’s Share & Associates, Inc., Lionsshare Tax Services, LLC, and Lion’s Share Financial of East Cobb, Inc., all under the “Lion’s Share” umbrella.
According to the SEC, Kelly through Lion’s Share, raised at least $1 million from at least 12 investors, promising that he would invest the funds in a variety of investment vehicles, such as CDs, private placements and real estate funds. Instead, Kelly allegedly spent his victims’ money for things like Super Bowl tickets, luxury vacations and cash withdrawals. It is reported that many of Kelly’s victims are elderly retirees, and his victims include widows, veterans and people with disabilities.
The SEC alleges that Kelly raised at least $1 million from 12 investors under the guise of his “Lion’s Share” businesses.
Kelly has been the subject of two customer complaints between 2017 and 2018, according to his CRD report:
- November 2018. “Individual is claiming the representative guaranteed 7% return on his annuity through Jackson National.” The customer is seeking $5,000 in damages and the case is currently pending.
- September 2017. “Client alleges the representative misrepresented the features of their variable annuity.” The customer is seeking $5,000 in damages and the case is currently pending.
- Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Capital Financial Services, Inc. may be liable for investment or other losses suffered by Kelly’s customers.
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