FINRA 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 One dispute was denied; nine are pending, and the remaining thirteen are settled, with one settlement rescinded.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.

Additionally, the firm limited the amount that a customer could invest in “alternative” type investments. Kim is accused of circumventing firm policy by inflating customers’ net worth and using other incorrect information on applications.

Allegations against Kim includes wrongful conduct, breaches of fiduciary duty, contract and conduct, violations of securities laws, fraud, financial elder abuse, negligent misrepresentation, inappropriate investments and unsuitable recommendations, as well as one allegation of forged signatures.

Kim was barred indefinitely by FINRA after the findings of multiple violations, effective 06/26/2018. After he signed FINRA’s Acceptance, Waiver & Consent (AWC) letter, he became barred from associating with any FINRA member in any capacity.

NOTE: Financial elder abuse is a crime. This article from AARP offers advice on recognizing the signs. Additional information is available from Findlaw.

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