Kyusun Kim (also known as Kyu Sun Kim and as Kenny Kim) of San Diego California a stockbroker formerly employed by Independent Financial Group LLC is referenced in a customer initiated investment related arbitration claim which was settled for $60,000.00 in damages based upon allegations that the stockbroker violated federal and state securities laws through his sale of structured products, mutual funds and direct participation program interests. FINRA Arbitration No. 17-01663 (Aug. 29, 2019).
According to the claim, the customer was exposed to financial abuse by the stockbroker. A contract between the customer and the securities broker dealer had been breached. The claim also alleges the breach of fiduciary duty by the stockbroker in regard to his sales of securities at Independent Financial Group.
FINRA Public Disclosure reveals that Kim has been identified in 22 additional customer initiated investment related disputes concerning accusations of his misconduct while employed by securities broker dealers including Independent Financial Group. On April 9, 2019, a customer initiated investment related arbitration claim involving Kim’s conduct was resolved for $60,000.00 in damages founded on allegations of the breach of contract and breach of fiduciary in regard to direct investments including limited partnership interests and structured products purchased by the Independent Financial Group customer. FINRA Arbitration No. 18-00721. The claim alleges that securities laws were violated by the stockbroker during the time that he was associated with Independent Financial Group.
Kim is the subject of another customer initiated investment related arbitration claim which was settled for $27,500.00 in damages supported by accusations of the sale of structured products and mutual funds as well as alternative investments that were in no way suitable for the customer during the period in which Kim was associated with Independent Financial Group. FINRA Arbitration No. 17-00628 (June 6, 2019). The claim alleges the violation of fiduciary duty and the unlawful sale of securities by the stockbroker.
Kim has been barred from associating with any FINRA member in any capacity based upon findings that he provided unsuitable investment recommendations to Independent Financial Group customers. Letter of Acceptance Waiver and Consent No. 2017052705001 (June 26, 2018).
According to the AWC, Kim took advantage of elderly customers who were in retirement or on the verge of retirement. Customers with no experience with alternative investments had been told by Kim to place large amounts of their investment portfolio in risky and illiquid investments including non-traded real estate investment trusts and structured notes. The regulator determined that Kim’s recommendations were unsuitable for customers given their aversion to risk and their objectives for investing.
FINRA also stated that omissions had been made by the stockbroker in regard to customer’s investments. The AWC also revealed that Kim falsified customers’ suitability information including their net worth and investment experience to enable those customers to purchase the investments. His customers sustained catastrophic losses. Kim’s conduct constituted the violations of FINRA Rules 2010, 4511 and 2111.
