Churning Allegations Against NYC Spartan Advisor Joe Kelly
New York City broker Joe Kelly (CRD# 4560737) allegedly engaged in unauthorized trading and churning, according to a pending investor complaint against him. Financial Industry Regulatory Authority records show that the Spartan Capital Securities representative has also received complaints that reached settlements.
Mr. Kelly’s BrokerCheck report discloses one pending investor complaint. Filed in 2021, it alleges that as a representative of Spartan Capital Management, he churned investments, breached his fiduciary duty, misrepresented material facts relating to investments, engaged in unauthorized trading, and failed to supervise. The pending complaint alleges damages of $844,107.44.
In a statement regarding the pending complaint, Mr. Kelly “vehemently denies” the allegations. “The client was aware of any risk involved, commission charged and was a sophisticated investor willing to take risk,” he writes. “There are approximately 13 claimants of which all alleged the same exact allegations against the various respondents which is factually impossible and clearly erroneous.”
An earlier complaint, filed in 2019, alleged that as a representative of Spartan Capital Securities, he misrepresented and recommended unsuitable investments. In February 2022 the complaint reached a settlement of $94,750.
A complaint filed in 2018 alleged that as a Spartan Capital representative, he churned investments and made unsuitable recommendations. In 2021 the complaint reached a settlement of $30,000.
A complaint filed in 2016 alleged that while at Spartan Capital, he made misrepresentations and excessive trades that resulted in losses. The complaint reached a settlement of $225,365.
According to the Financial Industry Regulatory Authority, Joe Kelly holds 19 years of securities industry experience. Based in New York City, he has been a representative of Spartan Capital Securities since 2017. His past registrations include PHX Financial, National Securities Corporation, John Thomas Financial, Prestige Financial Center, Empire Asset Management, Aura Financial Services, and First Montauk Securities. His credentials include the passage of three securities industry qualifying exams: the Uniform Securities Agent State Law Examination, or Series 63; the Securities Industry Essentials Examination, or SIE; and the General Securities Representative Examination, or Series 7. He holds 32 state licenses. (Information current as of May 19, 2022.)
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