SEC Obtains Asset Freeze Against Broker who Bought Super Bowl Tickets with Client Money
The SEC has obtained a court order granting the regulator an asset freeze against a registered stockbroker in Georgia who allegedly used clients’ funds to pay for luxury items, according to a litigation release published by the SEC.
Sean Kelly allegedly raised at least $1 million from 12 investors, including widows, veterans and people with disabilities, through his companies, Lion’s Share Financial of East Cobb, Inc., Lion’s Share & Associates, Inc. and Lionsshare Tax Services, LLC, according to the regulator.
Kelly allegedly told investors their funds would be invested in instruments including private placements and real estate funds, but instead spent it on luxury vacations, cash withdrawals and Super Bowl tickets, the SEC says.
The broker also allegedly continued stealing investor money after getting served with a subpoena by the SEC and failing to appear for testimony after telling the regulator’s staff that he would “come clean,” according to the litigation release.
The SEC is seeking preliminary and permanent injunctions, civil penalties and disgorgement of ill-gotten gains, the regulator says. The U.S. Attorney’s Office for the Northern District of Georgia filed criminal charges against Kelly and arrested him in a parallel action, according to the SEC.
Kelly was most recently registered with Center Street Securities, Inc., a registered broker-dealer, according to the SEC’s complaint. That registration ended Oct. 25 and Kelly has not registered with another firm since then, according to his BrokerCheck profile.
Kelly had been registered with eight firms in total during his 17 years in the financial services industry and has seven disclosure events on his record, starting with a 2008 judgment/lien tied to his Chapter 13 bankruptcy, according to BrokerCheck.