Securities Arbitration Lawyers BlogFINRA Bars Broker Kyusun Kim After Multiple Customer Complaints Of Unsuitability
Kyusun Kim (CRD #2864085) is a registered investment advisor and previously registered broker, last employed and registered with Sandlapper Securities, LLC, of San Diego, CA. (He is also known as “Kyu Sun Kim” or “Kenny Kim.”) Kim’s previous employers include Independent Financial Group, LLC (CRD #7717), Lincoln Financial Advisors Corporation (CRD #3978), both also of San Diego, and The Lincoln National Life Insurance Company (CRD #2580) of Fort Wayne, IN. He began in the industry in 1997.
Kim is the subject of 23 customer disputes dating back to 2007. One dispute was denied; nine are pending, and the remaining thirteen are settled, with one settlement rescinded. The total for Kim’s twelve settled cases is $2,995,443. His nine pending complaints include requested damages totaling $2,950,000.
Between 2008 and 2015, Kim was accused of soliciting the business of individuals who were retired or near retirement age, and recommended that they liquidate their pension plans and 401(k) to invest with him in so-called “alternative investments,” including things like non-traded real estate investment trusts (REITs.) Many of these customers had little or no investment experience, and were unfamiliar with these types of securities. The higher risk involved made them inconsistent with the more conservative objectives. Kim failed to disclose the extra risk involved in many of these securities, and most suffered substantial financial losses.
Two customer disputes were filed in May of 2018, both alleging overpayment of commissions, totaling $2,010,939.01. These disputes are currently listed as “pending.” According to FINRA documentation, Chong was under review for these disputes, which were related to large, institutional trades, and his registration with Raymond James was voluntarily terminated on May 22, 2018. He is not currently associated with any FINRA-member firm.
Downing is also the subject of a customer dispute, filed on 07/05/2018. In it, the client alleges that Downing “between 2013 and 2018. . .excessively traded client’s account.” Requested damages are $1M, but no additional details are available. It is not known if this case is related to the FINRA action that let to Downing ultimately being barred indefinitely.
FINRA suspended Henriquez in all capacities, effective 7/2/2018 through 08/15/2018, and fined him $7,500 for effecting discretionary transactions in multiple customer accounts. These transactions were conducted without written consent from the customers, as well as without written authorization from the firm.
How the company has violated or been accused of violating FINRA regulations
FINRA barred Knee on 05/18/2018 after he refused to appear for on-the-record testimony. He was the subject of allegations of funds misappropriation during his tenures with both Voya and Ameriprise. After signing an Acceptance, Waiver & Consent (AWC) letter, Knee was indefinitely barred in all capacities.