Bae Keun Yu, of Los Angeles, California, a stockbroker formerly registered with SH Investment & Securities, has been fined and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he engaged in undisclosed outside business activities. Letter of Acceptance, Waiver and Consent, No. 2016047873501 (Aug. 15, 2017).
According to the AWC, in September of 2013, during which time Yu was associated with SH Investment & Securities, he created Optima Koam – an entity that was designed for investments in Korean securities. Apparently, Yu was the sole officer and owner of Optima Koam, and was compensated for his investment activities. The AWC stated that Yu failed to timely notify SH Investment & Securities, as well as his subsequent employer, Kayan Securities, about his role with Optima Koam. Consequently, Yu’s conduct was found by FINRA to be violative of FINRA Rules 2010 and 3270.
The AWC additionally revealed that an investment account was opened by Yu with a foreign brokerage firm in 2013; however, this account was never made known by Yu to SH Investment & Securities nor Kayan Securities. Yu reportedly placed over one-hundred trades in the foreign brokerage account, which included the purchase of $600,000.00 worth of Korean IPO shares and the resulting sales in the foreign country’s stock exchanges. FINRA found Yu’s failure to inform his firms about the foreign brokerage account to constitute violations of FINRA Rule 2010 and NASD Rule 3050(d).
Yu’s registration with SH Investment & Securities was terminated on March 23, 2015. He was registered with Kayan Securities, Inc. from March 4, 2015, to April 21, 2017. Since March 14, 2000, Yu has been associated with five different broker dealers, two of which have been expelled by securities regulators for violation of federal securities laws or are otherwise defunct.
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