Paul Ronald Koch of Wayzata, Minnesota, a stockbroker formerly registered with RBC Capital Markets LLC, has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings that he failed to cooperate with FINRA while he was under investigation for allegedly making unsuitable investment recommendations and diverting funds for his own personal benefit. Letter of Acceptance, Waiver, and Consent No. 2019062621801 (March 16, 2022).
According to the AWC, FINRA received word from UBS Financial Services on November 7, 2018, that Koch’s stockbroker registration had been terminated. FINRA was made aware on June 4, 2019, that Koch allegedly made unsuitable recommendations concerning outside business ventures and that Koch’s spouse was the part owner in the business ventures. The securities broker dealer also indicated that Koch and his spouse took money from those investments for their benefit.
FINRA states that Koch cooperated with the investigation – at least initially. Koch stopped cooperating in February 2022. Koch was asked by FINRA to provide documents and information so that the regulator could determine if he violated FINRA rules. Koch’s lawyer indicated to FINRA that Koch received its request and that Koch would not cooperate by providing the documents and information that FINRA requested. FINRA states that Koch’s obstruction of the investigation showed that he violated FINRA Rules 2010 and 8210.
Koch has been identified in three more customer initiated investment related disputes concerning accusations of his wrongdoing while employed by securities broker dealers, including Citigroup Global Markets Inc. and UBS Financial Services. FINRA Public Disclosure shows that a customer filed an investment related complaint regarding Koch’s conduct in which the customer sought compensatory damages supported by allegations of misrepresentation by Koch concerning the purchase of a common or preferred stock during the time that he was associated with Citigroup Global Markets Inc.
On December 9, 2020, a customer initiated investment related FINRA arbitration claim concerning Koch’s activities was settled for $3,750,000.00 in damages based upon accusations of unsuitable investments and misuse of the customer’s funds in regard to outside investments between July 2011 and October 2018, when Koch was registered with UBS Financial Services. FINRA Arbitration No. 19-01229 (December 9, 2020). According to the claim, Koch was part owner in venture capital enterprises, housing developments, haircut businesses, clothing stores, and janitorial businesses. The customer’s funds were placed into those businesses but allegedly diverted by Koch and his spouse, resulting in damages to the customer.
Koch is also identified in a customer initiated investment related civil action that was settled to resolve allegations of conversion, negligence, and breach of fiduciary duty as it pertained to outside investments while Koch was employed by UBS Financial Services. Civil Action No. 3:19-cv-01129-JMC.
Koch was associated with UBS Financial Services between January 28, 2009, and November 7, 2018. He was associated with RBC Capital Markets between October 26, 2018, and February 4, 2022.
