According to the FBI’s press release, Jeffrey G. Kelly admitted to running a investment fraud scheme between 2006 and 2011 that swindled more than $1.5 million from investors. Many of Kelly’s victims included family, close friends, and fellow church members. Kelly told his victims that he would invest their money in various financial products including stocks, REITs, and other investment funds, when in fact, Kelly was using money to cover his personal and business expenses, as well as repaying earlier investors.

Kelly carried out his scheme through a number of businesses that he operated near Columbus, Ohio. The businesses were named Superior Financial Resources LLC, J.G. Kelly Financial Groups LLC, J.G. Kelly Equities Group, and JKG Group, LLC. In addition, Kelly was a employed by brokerage firms that were registered with the Financial Industry  Regulatory Authority (FINRA).

According to FINRA BrokerCheck Report, during the relevant time, Kelly worked with Woodburry Financial Services, WPR Investments from 10/2006-11/2009, and Questar Capital Corporation from 10/2009-10/2010.

Although restitution was part of the plea agreement, it is unlikely that the victims will receive payment from Kelly to cover their total losses. As such, The White Law Group is investigating other avenues of recovery on behalf of investors.

When a FINRA affiliated broker, like Kelly, conducts business outside of the firm with whom he is registered, the activity may be considered “selling away.” If a registered broker “sells away” from his firm, the brokerage firm may still be liable for  negligent supervision and may be responsible for  investment losses in a FINRA dispute resolution claim.