Soreide Law Group is evaluating possible claims of sales practice violations against Sandlapper Securities, LLC general securities representative Kyusun Kim (CRD#: 2864085, San Diego, CA) who is also known as Kenny Kim. Notably, the Financial Industry Regulatory Authority (“FINRA”) expelled Kim from acting as a broker or associating with FINRA member broker-dealers. Here is a summary of some of the major incidents involving Kim which raise red flags about him:
FINRA Bars Kyusun Kim For Giving Investors Bad Advice About Equities
Kim’s fate was sealed by his submission of Letter of Acceptance, Waiver, and Consent (“AWC”) #2017052705001, effective June 26, 2018. Basically, Kim chose not to contest FINRA’s findings that included Kim making unsuitable recommendations and falsifying books and records. Significantly, FINRA stated that Kim violated NASD Rules 2310, 3110, and 2110, and FINRA Rules 2110, 4511 and 2010.
Kyusun Kim Advises Retirees To Swap Pension With Unsuitable Alternative Investments
The AWC shows that between 2008 and 2015, Kyusun Kim recommended customers move their retirement holdings to Independent Financial Group – a broker dealer Kim worked for at the time – so that customers could invest through Kim. Supposedly, Kim told customers to invest in risky alternative investments including non-traded REITs and structured notes. However, Kim’s customers were inexperienced and knew nothing about alternative investments.
FINRA’s findings show that Kim’s recommendations were unsuitable for two reasons. Primarily, Kim recommended risky and illiquid investments. Supposedly, those investments were incompatible with the customers’ investment objectives and risk tolerance. Secondly, Kim’s advice prompted customers to place too much of their retirement holdings and net worth in the risky and illiquid alternative investments. Their accounts were overconcentrated in unreasonable investments. Supposedly, customers lost a lot of money from following Kim’s advice.
For example, Kim evidently caused an elderly customer to put 75% of his liquid net worth in the alternative investments. Apparently, this customer actually liquidated his pension or 401(k) to follow through on Kim’s bad advice. FINRA also says that Kim did not discuss the speculative and illiquid characteristics of these alternative investments.
FINRA also says that Kim did not comply with Independent Financial Group’s restrictions on alternative investments. Evidently, Kim circumvented the firm’s restrictions by making false entries about customers’ wealth and investment experience. This caused Independent Financial Group to keep inaccurate records about the customers.
Here is a summary of some recent customer disputes involving Kyusun Kim:
A customer of Independent Financial Group LLC filed a FINRA Arbitration #: 18-00721 on February 22, 2018. Allegedly, Kim broke securities laws in selling the customer DPPs, mutual funds and structured products. Additionally, the customer stated that Kim breached both a fiduciary duty and a contract agreement. Because of this, the customer demanded $200,000.00 in compensation is this pending matter.
Evidently, FINRA Arbitration #17-01149 was filed by two customers of Independent Financial Group on May 15, 2017. According to the customer, Kim violated securities laws and FINRA Rules by selling the customer third party investments, DPPs and structured products. Apparently, Kim failed to act in the best interest of the customer, and breached a contract relating to the customer’s investments. All things considered, on November 9, 2018, Independent Financial Group LLC acquiesced to paying the customer $42,500.00 to settle the matter.
On March 29, 2017, an Independent Financial Group LLC customer brought a FINRA Arbitration #17-00408. Namely, the customer stated that Kim gave the customer bad investment recommendations. As was the case with the other customers, Kim apparently advised this customer to invest in mutual funds, DPPs, and structured products. Allegedly, Kim violated his fiduciary responsibilities to the customer in connection with these investment sales. Not only that, but Kim failed to abide by an investment agreement. Because of Kim’s alleged sales practice violations, Independent Financial Group opted to settle. Accordingly, on February 21, 2018, the broker agreed to pay the customer $175,000.
Independent Financial Group LLC employed Kim from 2006 to 2016. Evidently, Kim worked for Sandlapper Securities from 2016 to 2017, and Sandlapper Wealth Management until 2018. Have you experienced losses by investing with securities broker Kyusun Kim? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The firm has recovered millions of dollars for investors who have suffered losses due to misconduct of brokers and brokerage firms.
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