FINRA’s Department of Enforcement investigated Kelly and alleged he entered into a personal loan with a married couple. Specifically, on or about March 1, 2009, Kelly borrowed $150,000 from two customers in violation of LPL’s borrowing policy. In addition, in April 2011, Kelly participated in a private securities transaction when he sold a $150,000 convertible preferred equity interest in his investment advisory business to one investor.
FINRA alleged Kelly violated several FINRA rules and regulations, including NASD Rules 2370 and 3040(a), as well as FINRA Rules 2010 and 3240. FINRA Rule 3240 prohibits registered persons from borrowing money from or lending money to any customer certain conditions and/or exceptions are satisfied. A violation of FINRA Rule 3240 also constitutes a violation of FINRA Rule 2010, which requires associated persons to observe high standards of commercial honor and just and equitable principals of trade.
Lufrano Law, LLC is a national securities litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. If you suffered investment damages with Kelly through LPL, you may be able to recover your losses through FINRA arbitration. Our firm only receives a fee if you recover money. Please complete the contact form below or contact one of our attorneys at (800) 627-2179 to schedule a free consultation or complete our free case evaluator.