Eugene Hyunwook Kim, also known as Gene Kim, of New York, New York, a previously registered investment advisor representative and stockbroker, was sanctioned through a regulatory action initiated by FINRA for unethical conduct, bad faith, and misuse of customer funds in connection with a private placement offering while Kim was registered with National Securities Corporation (CRDNo. : 7569). Department of Enforcement v. Eugene Kim, Case No. 2019064508802.
On July 11, 2023, FINRA filed a complaint against Kim, alleging that he acted in bad faith and engaged in unethical conduct while managing a private placement offering. Specifically, Kim proposed an offering through a firm-affiliated fund to purchase shares in a private company at a maximum price of $9.75 per share. Despite approval of the offering and solicitation of investor funds totaling $4.055 million, Kim failed to confirm a source of shares at the stated price or any price before closing escrow. Instead of refunding the funds, he initiated escrow closure and collected a $16,220 commission.
Subsequent investigations showed that 10 months after closing escrow, Kim purchased shares at an average price of $20.22—more than double the promised price—leaving over $1 million of investor funds unused. During this time, Kim allegedly concealed the status of the offering, misrepresented purchase details, and omitted critical information in communications with firm principals, registered representatives, and indirectly, investors.
On November 6, 2024, a FINRA Hearing Panel rendered its decision, finding Kim in violation of FINRA Rule 2010. Sanctions imposed included a $35,000.00 fine and six-month suspension from associating with any FINRA member.
Kim has been associated with multiple securities broker dealers, including Ceros Financial Services Inc. since August 1, 2022, and National Securities Corporation from June 2015 to July 2022.
