Incident Tracker / United States (federal)
Kelly v. Financial Industry Regulatory Authority
·United States District Court for the District of Nevada·US-FEDWarningprovisional
The District of Nevada dismisses William Lee Kelly’s second amended complaint against FINRA and warns him about AI-generated fake authority. The court finds several false quotes and nonexistent citations in his opposition and explains that future Rule 11 violations may lead to monetary or nonmonetary sanctions.
- Court
- United States District Court for the District of Nevada
- Date
- 2026-08-19
- Who used the AI
- Litigant in person
- AI tool
- Not identified in the record
- Conduct
- Self-represented plaintiff’s opposition contained several nonexistent case citations and false quotations that did not appear in the cited cases.
- Outcome
- Warning
- Penalty
- No monetary penalty recorded
- Regulatory outcome
- No separate regulatory disposition recorded
- Status
- Provisional — written by the court-decisions pipeline, awaiting the editor
- Last checked
- 2026-09-07
Primary sources for this incident
Related regulation records for this incident
No related regulation record has been linked to this incident yet.
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Cite this record
SafeLegalAI Global Legal AI Incident Tracker, “Kelly v. Financial Industry Regulatory Authority”, safelegalai.com/tracker/kelly-v-financial-industry-regulatory-authority (accessed 2026-09-08). Data: CC BY 4.0.