Kyung Soo Kim of Katy Texas a stockbroker formerly registered with Merrill Lynch Pierce Fenner Smith 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 Kim engaged in outside business activities without having notified Merrill Lynch during the time he was associated with the firm. Letter of Acceptance Waiver and Consent No. 2018058100701 (June 10, 2019).
According to the AWC, in December of 2017, a company had been established by Kim in which he was a director and shareholder. The AWC stated that the company was established for Kim to facilitate activities involving cryptocurrency mining. Apparently, Kim entered into several transactions on the company’s behalf relating to the cryptocurrency mining activities without having apprised Merrill Lynch. Particularly, a bank account in the company’s name had been created and funded by Kim; an agreement was entered into by the company and a third party for purposes of constructing software and hardware relating to cryptocurrency transactions; and funds were transferred between the company and the third party in reference to the agreement.
During the time Kim engaged in the outside business activities, he was required under the firm’s supervisory policies as well as FINRA Rules to disclose his activities which were outside the scope of his activities at Merrill Lynch. FINRA found Kim’s failure to comply in this respect to be violative of FINRA Rules 2010 and 3270.
FINRA Public Disclosure confirms that Kim has been discharged by Merrill Lynch on March 14, 2018 based upon allegations that customer account documents had been altered by Kim, and an outside business activity which Kim engaged in had not been disclosed to the firm.
