Investor Alleges Brendan Kelly Recommended High-Risk Investments

Brendan Kelly (CRD #: 2208036), a broker registered with IFP Securities, allegedly recommended unsuitable investments, according to his BrokerCheck record, accessed on November 18, 2024. Investors may have also engaged his services through Independent Financial Partners. Keep reading to learn more about his alleged conduct as a broker.

Investor Disputes

On October 2, 2024, an investor filed a dispute alleging that Brendan Kelly made unsuitable recommendations of high-risk and illiquid convertible notes and Business Development Companies (BDCs) between 2013 and 2018. The client seeks $450,000 in this pending dispute.

On September 9, 2024, an investor filed a complaint with the Pennsylvania Insurance Department alleging that Brendan Kelly misled him with regard to the purchase of a Nationwide variable annuity.

Brendan Kelly allegedly told the client that he could redeem $510,000 when the annuity matured, when that was actually the income benefit base used to calculate the guaranteed income stream and not available for withdrawal. This dispute is currently pending.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to take investors’ profiles into account when recommending investments. These profiles describe an investor’s tax status, investing experience, financial goals, and other characteristics.

Investors who rely on brokers for recommendations may be able to recover their losses by seeking out FINRA arbitration.

FINRA Rule 2020

FINRA Rule 2020 forbids the use of deceptive, manipulative, and otherwise fraudulent methods to influence the purchase and sale of securities. The misrepresentation or omission of material facts violates this rule.

What are BDCs?

Business Development Companies (BDCs) allow investors to invest in the private sector. BDCs extend loans to distressed companies, and investors can see high returns in the form of the interest these companies pay. However, the possibility of default and other risks can make BDCs unsuitable for some investors.

What are Variable Annuities?

Variable annuities are complex investments. These policies can decline in value depending on the performance of the underlying securities, but their benefits can be outweighed by the associated tax penalties, surrender charges, and other fees.

Termination from Alera Investment Advisors

On April 9, 2024, Brendan Kelly was fired from Alera Investment Advisors following his termination by an unaffiliated broker-dealer for alleged violations of firm policy.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

Background Information

Brendan Kelly has passed the following exams:

• Series 65 – Uniform Investment Adviser Law Examination
• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination
• Series 6 – Investment Company Products/Variable Contracts Representative Examination

Brendan Kelly is a registered broker in California, Delaware, New York, and Pennsylvania. He is also a registered investment advisor in California, New York, Pennsylvania, and Texas.

He has also worked for the following firms:

• Alera Investment Advisors (CRD#:287906)
• Triad Advisors (CRD#:25803)
• Independent Financial Partners (CRD#:125112)
• LPL Financial (CRD#:6413)
• Lincoln Financial Advisors (CRD#:3978)
• Cambridge Investment Research (CRD#:39543)
• NFP Securities (CRD#:42046)
• Investment Advisors & Consultants (CRD#:7996)
• New England Securities (CRD#:615)

Kurta Law Can Help

If you worked with Brendan Kelly and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.