SSEK Investigates Capital Financial Investments And Ex-Broker Sean Kelly Over Investor Claims
At the heart of recent investor claims against Capital Financial are allegations against one of its ex-brokers, Sean Kelly.
Sean Kelly was accused last year by the US Securities and Exchange Commission (SEC) of defrauding a dozen investors. These investors, including senior retirees, were defrauded of over $1M through three of his companies, including Lion’s Share and Associates, that is based out of Georgia.
In June, Kelly pleaded guilty to investment fraud and defrauding his clients of over $1.4M. He was sentenced to five years in prison. The press release from the Justice Department announcing the prison sentence said that the fraud went on between 2/2014 through 10/2018 and that over 18 of his former clients were harmed.
Investor Fraud Lawsuit: What Are The Claims Against Sean Kelly?
Kelly was with Capital Financial for most of this period and then for the latter portion, he was a registered broker with Center Street Securities. In the past, Kelly has been a Securities America broker, as well as a former representative for United Securities Alliance, US Alliance Securities, ProEquities, and PFS Investments.
Now, nine investors, including two people in their 80’s and a cancer survivor, are suing Capital Financial for over $400K in losses in the wake of Kelly’s actions. The plaintiffs are also seeking punitive damages.
The investor fraud lawsuit accuses Kelly of targeting vulnerable individuals, including widows and those with disabilities, and that many of those whom he harmed have been struggling financially. Kelly used their money to fund his lavish lifestyle.
Capital Financial Holdings, Capital Financial Services, and firm CEO, Douglas Dihle, are the defendants in this investor fraud case. They are accused of breach of fiduciary duty, breach of contract, violating the Georgia Uniform Securities Act, and negligence.
Investor Fraud Lawyers
If you were an investor who sustained losses while working with a Capital Financial Investments broker, contact Shepherd Smith Edwards and Kantas, LLP (SSEK Law Firm) today.
Our brokerage firm misconduct lawyers work with clients who have suffered financial losses due to the negligent or wrongful actions of financial representatives. If you worked with Sean Kelly or another Capital Financial broker and suspect you are a victim of fraud or negligence, get in touch for a free, no-obligation case consultation.