Sean Kelly, Wire Fraud and Securities Fraud, Georgia 2019

A former stockbroker from Marietta, Georgia, has been sentenced to federal prison for his role in a complex scheme to defraud his clients out of over $1.4 million.

Sean Kelly, 50, was sentenced to five years in prison to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $1,457,043.99.

Kelly pleaded guilty to charges of wire fraud and securities fraud after a lengthy investigation by the Federal Bureau of Investigation (FBI). The U.S. Securities and Exchange Commission (SEC) also contributed to the case.

According to the U.S. Attorney's Office, Kelly defrauded his clients over a period of almost five years, from January 2014 through October 2018. He advised his victims to invest in various ways, including private placements, annuities, investment funds, and real estate investment trusts.

However, instead of investing their money, Kelly used it for personal expenses, including mortgage payments, Super Bowl tickets, vacations, and significant cash withdrawals.

U.S. Attorney Byung J. 'BJay' Pak said that Kelly's actions were a clear example of a breach of fiduciary responsibility. 'Kelly never intended to fulfill his fiduciary responsibility to his clients, which included elderly citizens and veterans,' Pak said.

The FBI's Special Agent in Charge, Chris Hacker, praised the work of the agency in bringing Kelly to justice. 'While it is easy to dismiss financial fraud cases as being almost benign because of their lack of violence, there is, however, a very real victimization felt and lives are changed forever,' Hacker said.

Source: https://www.justice.gov/usao-ndga/pr/former-stockbroker-sentenced-defrauding-clients