Investment Suitability and Supervision Considerations for Clients of Money Concepts Capital Corp Broker Tally Lykins

When investors experience significant losses, they must often determine whether those losses were due to market volatility or to a failure of professional conduct. Publicly available regulatory disclosures, such as those from FINRA, provide critical context for investors evaluating their recovery options.

One such record involves Tally Lykins (CRD #2439455), a financial professional currently associated with Money Concepts Capital Corp and Money Concepts Advisory Service in Columbus, Indiana.

Recent Elder Abuse and Negligence Allegations

In August 2025, the personal representatives of a deceased customer’s estate filed a formal complaint involving Mr. Lykins. The allegations are serious and include:

• Negligence and Breach of Contract
• Negligent Misrepresentation
• Violations of State and Federal Securities Laws
• Elder Abuse (under Indiana’s Elder Consumer Protection Law)

The dispute stems from the purchase of illiquid investments, specifically a Delaware Statutory Trust (DST). DSTs are complex real estate investment vehicles that lack liquidity, making them potentially unsuitable for older investors or estates that require access to capital. This matter is currently pending.

A History of Regulatory Action

Investors should also be aware of Mr. Lykins’ prior regulatory history. In October 2008, the State of Indiana ordered Mr. Lykins to pay $40,000 in restitution following allegations of dishonest and unethical practices. Specifically, the order alleged he failed to disclose and seek permission for outside business activities—a practice often referred to as “selling away” that can bypass a firm’s supervisory systems.

Why Supervision and Suitability Matter

Under FINRA Rule 3110 and SEC Regulation Best Interest (Reg BI), brokerage firms like Money Concepts Capital Corp (and previously Grove Point Investments) have a non-negotiable duty to supervise their representatives.

This includes:

• Monitoring Suitability: Ensuring that high-risk or illiquid products like DSTs align with the client’s age, liquidity needs, and risk tolerance.
• Detecting Red Flags: Identifying patterns of conduct that may put vulnerable or elderly investors at risk.

If a firm fails to implement a reasonable supervisory system, it may be held liable for the resulting investment losses, regardless of whether the firm intended for the harm to occur.

Identifying “Red Flags” in Your Portfolio

Regulatory disclosures do not guarantee the outcome of a legal claim, but they do highlight potential systemic issues. Investors who worked with Tally Lykins or Money Concepts should review their accounts for the following:

1. Concentration in Illiquid Assets: Are your funds tied up in DSTs or other products you cannot easily sell?
2. Misalignment with Age: Were complex, long-term products sold to an elderly family member?
3. Lack of Transparency: Were the risks and fees of illiquid investments clearly explained in writing?

Sonn Law Group: Protecting Your Right to Recovery

At Sonn Law Group, we represent investors nationwide in claims involving unsuitable recommendations and supervisory failures. If you or a loved one experienced losses in an account managed by Tally Lykins, or if you have questions about the suitability of a Delaware Statutory Trust in your portfolio, we are here to help.

For a confidential review, call 833-912-3000 or complete our online consultation form.