Home News SEC Obtains Asset Freeze to Halt Alleged Fraud by Georgia Stock Broker

SEC Obtains Asset Freeze to Halt Alleged Fraud by Georgia Stock Broker

The Securities and Exchange Commission has obtained a court order halting an alleged ongoing fraud perpetrated by a registered stock broker and several companies he controlled.

The Securities and Exchange Commission has obtained a court order halting an alleged ongoing fraud perpetrated by a registered stock broker and several companies he controlled.

The SEC’s complaint alleges that Sean Kelly used his companies, Lion’s Share Financial of East Cobb Inc., Lion’s Share & Associates Inc., and Lionsshare Tax Services LLC, to raise at least $1 million from 12 investors, including elderly retirees, promising that he would invest their funds in a variety of investment products including private placements and real estate funds.

Rather than investing the money, the SEC claims that Kelly spent it on personal expenses including Super Bowl tickets, luxury vacations, and cash withdrawals. As alleged, Kelly continued to steal money from investors even after having received an SEC subpoena, and did not show up for his scheduled testimony after informing the SEC’s staff that he would show up and “come clean.”

In a parallel action, the U.S. Attorney’s Office for the Northern District of Georgia filed criminal charges against Kelly and arrested him.

The court granted the SEC’s request for an asset freeze, temporary restraining order, and an accounting. The SEC seeks preliminary and permanent injunctions, disgorgement of allegedly ill-gotten gains plus interest, and civil penalties against Kelly.

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