Eric Kuchel, of Brea, California, a stockbroker with Crown Capital Securities, L.P., was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member per a Default Decision from FINRA’s Department of Enforcement containing findings that Brea failed to cooperate in a FINRA investigation into Kuchel’s alleged private securities transactions. Department of Enforcement v. Kuchel, No. 2015047966701 (May 9, 2016).
According to the Decision, in 2014, FINRA launched an investigation into Kuchel’s mutual fund transactions that were effected while Brea was with his firm, as well as allegations of Kuchel’s participation in unauthorized private securities transactions. FINRA requested that Kuchel provide on-the-record testimony, per Rule 8210, in connection with the investigation.
Kuchel apparently made arrangements to have his testimony rescheduled. Just prior to Kuchel’s scheduled testimony, his counsel informed FINRA that Kuchel was unavailable, and needed to reschedule. After setting a new date, Kuchel reportedly showed up for testimony on August 19, 2015. Apparently, Kuchel stopped the proceeding after a few hours, claiming that the issues that FINRA looked for him to discuss were over his head, and requested to speak with his counsel prior to responding further.
The Decision stated that FINRA provided Kuchel an accommodation and rescheduled his testimony. Kuchel apparently failed to show up for this October 28, 2015 proceeding. Kuchel reportedly responded to additional FINRA requests for participation by indicating that he had not secured counsel. Subsequently, Kuchel failed to show up to another scheduled proceeding on November 18, 2015.
FINRA eventually lodged a Complaint against Kuchel, alleging that his ongoing failures to cooperate was violative of FINRA Rules 8210 and 2010. The Decision stated that Kuchel never responded to the FINRA Complaints, which led to FINRA’s findings that Kuchel violated FINRA Rules 8210 and 2010.
Public disclosure records reveal that Kuchel has been subject to eight disclosure incidents. On August 22, 2012, a customer was awarded $227,468.00 after alleging unsuitability, misrepresentation, failure to supervise, and breach of fiduciary duty. On June 9, 2015, Kuchel settled a customer dispute for $50,000.00 after clients alleged negligence, fraud, unsuitable recommendations, and failure to conduct due-diligence pertaining to real estate investment trusts. Kuchel has been subject to three pending customer disputes from December 30, 2015 through January 19, 2016, where customers are all alleging unauthorized trading activity.
The information contained herein has been obtained from reliable sources however may not be accurate and is not guaranteed by us. Readers are encouraged to undertake their own independent investigation and evaluation of the relevant facts. All claims and allegations are subject to adjudication, decisions may be subject to appeal, and no inference is intended, nor should any inference be made from any information contained herein from any source.
This posting and the information on our website is for general information purposes only. This content should be not considered legal advice, and any responses, comments, e-mails, other communications do not form any attorney client relationship. Attorney Advertisement. See Important Disclaimer
Guiliano Law Group
Our practice is limited to the representation of investors. We accept representation on a contingent fee basis, meaning there is no cost to you unless we make a recovery for you. There is never any charge for a consultation or an evaluation of your claim. For more information, contact us at (877) SEC-ATTY.
For more information concerning common claims against stockbrokers and investment professionals, please visit us at securitiesarbitrations.com
To learn more about FINRA Securities Arbitration, and the legal process, please visit us at securitiesarbitrations.com
