John Andrew Kasel of Scottsdale Arizona a stockbroker formerly employed by KMS Financial Services Inc. has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he engaged in unapproved outside business activities while registered with the firm. Letter of Acceptance Waiver and Consent No. 2017053496701 (Feb. 8, 2019).
According to the AWC, Kasel made arrangements with a KMS Financial Services Inc. Investor, DK, that involved real estate properties owned by DK being managed by Kasel. The AWC stated that the rental properties owned by DK were extensively managed by Kasel through their arrangement. Specifically, the AWC stated that Kasel, inter alia; helped secure tenants for the properties; dealt with real estate agents; made payments to contractors and insurance companies; handled the rental properties’ tax issues and business expenses; decided when to purchase and sell properties; and became authorized to sign on DK’s behalf to effect business transactions. In return for Kasel’s efforts, DK reportedly paid him $26,500.00.
The AWC stated that the outside business activities which Kasel engaged in were not disclosed to the firm despite the firm’s procedures mandating Kasel’s disclosure of outside business activities. Kasel reportedly informed KMS Financial Services Inc. that he had not engaged in outside business activities while employed by the firm. Consequently, FINRA found Kasel’s participation in undisclosed outside business activities to be violative of FINRA Rules 2010 and 3270.
FINRA Public Disclosure additionally confirms that a customer initiated investment related civil action involving Kasel’s activities was resolved for $76,900.00 in damages supported by accusations that the plaintiffs’ funds once held in an account Kasel managed were embezzled and converted by Kasel for his own personal use. Civil Action No. 17-2-04948-4 SEA (Aug. 5, 2017).
Kasel’s registration with KMS Financial Services Inc. has been terminated as of December 31, 2014. From September 19, 2016 to February 15, 2019, Kasel was associated with U.S. Bancorp Investments, Inc.
