FINRA Arbitration Case Filed Against Broker Li Kelly for Unsuitable Investment Recommendations
If you invested in corporate bonds through broker Li Kelly (CRD# 6115397) at NI Advisors between 2019-2020, you may be eligible to recover your investment losses. A recent FINRA arbitration claim alleges breach of fiduciary duty and unsuitable investment recommendations related to corporate bonds that later defaulted when the issuer declared bankruptcy.
Current FINRA Arbitration Details
According to FINRA BrokerCheck records, Li Kelly is currently facing a customer dispute that was filed on December 16, 2024. The pending arbitration (Case #24-02613) involves allegations of:
- Breach of contract
- Breach of fiduciary duty
- Vicarious liability
- Investment losses between $100,000 and $500,000
The investments in question were corporate bonds purchased between 2019 and 2020 while Kelly was registered with NI Advisors (CRD# 134502). The issuer of these bonds has reportedly declared bankruptcy, resulting in significant investor losses.
Who is Li Kelly?
Li Kelly is currently employed as a Registered Representative at LPL Enterprise, LLC (CRD# 8733) in Forest Hills, NY, where he has been registered since February 18, 2025. Prior to joining LPL Enterprise, Kelly worked at:
- HSBC Securities (USA) Inc. (October 2023 – November 2024)
- NI Advisors (July 2019 – October 2023)
According to FINRA records, Kelly holds the following licenses:
- Series 7TO (General Securities Representative)
- SIE (Securities Industry Essentials)
- Series 66 (Uniform Combined State Law Examination)
Kelly is currently registered in three states: Connecticut, New York, and Pennsylvania.
Understanding Corporate Bond Investment Risks
Corporate bonds can appear attractive to investors seeking income, but they carry significant risks that may not be fully disclosed by financial advisors, including:
- Default risk: If the issuing company files for bankruptcy, investors may lose most or all of their principal
- Interest rate risk: Bond values typically decline when interest rates rise
- Liquidity risk: Some corporate bonds, particularly high-yield or “junk” bonds, can be difficult to sell in declining markets
- Call risk: Issuers may redeem bonds before maturity, disrupting expected income streams
Red Flags in Bond Recommendations
Brokers have a legal obligation to recommend only suitable investments that align with their clients’ financial objectives, risk tolerance, and investment timeline. Potential signs of unsuitable bond recommendations include:
- Excessive concentration in high-risk corporate bonds
- Lack of proper diversification across issuers and industries
- Inadequate disclosure of risks and potential conflicts of interest
- Recommendations that contradict stated investment objectives
Legal Options for Recovering Investment Losses
If you’ve suffered losses from corporate bond investments recommended by Li Kelly, you have several potential avenues for recovery:
- FINRA Arbitration: The most common method for resolving investment disputes, typically faster and less expensive than court litigation
- Brokerage Firm Liability: Firms like NI Advisors have a duty to supervise their brokers and may be held liable for failing to prevent unsuitable recommendations
- Regulatory Complaints: Filing complaints with FINRA, the SEC, or state securities regulators can initiate investigations that may lead to restitution
Statute of Limitations for Investment Claims
It’s important to act promptly if you believe you’ve been harmed by unsuitable investment recommendations. Most investment fraud claims are subject to a statute of limitations, typically between 1-6 years depending on the jurisdiction and legal theory.
Free Consultation for Li Kelly Investors
Our investment fraud attorneys are currently investigating claims related to Li Kelly and corporate bond investments that resulted in losses. We offer:
- Free, confidential case evaluations
- No recovery, no fee representation
- Experienced FINRA arbitration counsel
- Comprehensive analysis of your investment losses
If you invested with Li Kelly at NI Advisors or HSBC Securities and experienced losses in corporate bonds, contact our securities attorneys today to discuss your legal options for recovery.
Related Investment Fraud Investigations
Investors who worked with Li Kelly may also want to be aware of other potential investment concerns:
- High-yield or “junk” bond investments
- Private placement offerings
- Structured products with complex features
- Concentrated positions in single issuers
Important Disclaimer
The information in this article is based on allegations made in a pending FINRA arbitration. The claims against Li Kelly have not been proven, and the presence of a disclosure on BrokerCheck does not necessarily indicate wrongdoing. This article is for informational purposes only and does not constitute legal advice.
Last Updated: March 7, 2025
