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Frank Kelly: Pennsylvania HD Vest Broker Suspended by FINRA
A disciplinary action taken by the Financial Industry Regulatory Authority against New Cumberland, Pennsylvania broker Frank Kelly (CRD# 2028226) suspended him over allegations he executed an unauthorized trade in the account of a customer at his member firm. A representative of HD Vest Investment Services, Kelly was fined $5,000 and suspended from acting as a broker for three months as a result of these findings.
According to a Letter of Acceptance, Waiver, and Consent (No. 2016051149101) signed in May 2019, Frank Kelly executed an unauthorized transaction in one of his clients’ accounts in July 2016, violating FINRA Rule 2010. He also allegedly exercised unauthorized discretion in that customer’s account as well as four other customers’ accounts between 2011 and 2016, violating NASD and FINRA Rules.
FINRA’s findings specifically state that in July 2016, Kelly attempted to reach a customer to inform her of a notification he received that “there was insufficient cash in [her] account to process an upcoming mortgage payment.” After failing to reach her and declining to leave a message or email her, FINRA states, Kelly “sold 1,058 shares of a mutual fund” in her account without her authorization, generating proceeds of $22,163. FINRA states that the sale “would have caused [her] to suffer a realized loss of $1,010” if she had not noticed the transaction and complained to the firm, which subsequently reversed the transaction.
FINRA’s findings state additionally that between 2011 and 2016, Frank Kelly exercised discretionary authority in the accounts of five customers “when responding to their requests to disburse funds from their accounts in order to pay for college tuition, home improvements” and other expenses. According to FINRA’s findings, Kelly had received these customers’ implied authority to exercised discretionary authority, but had not received their prior written authorization nor the firm’s authorization to exercise discretionary trades in those accounts. FINRA’s findings also state that he denied in annual attestations to the firm that he had used discretion. As a result of the foregoing conduct, Frank Kelly was ordered to pay a fine of $5,000 and given a three-month suspension from associating in any and all capacities with any FINRA member firm.
Frank Kelly is currently registered with HD Vest Investment Services in New Cumberland, Pennsylvania. His employment history includes GR Phelps & Company. He holds eleven state licenses and has passed four securities industry qualifying examinations.