Were you the victim of former Independent Financial Group, LLC financial advisor Kyusun Kim (CRD# 2864085) who is alleged to make unsuitable investment recommendations to senior customers? Kim was registered with Sandlapper Securities, LLC in San Diego, California from 2016 to 2017. Previously, Kim was registered with Independent Financial Group, LLC in San Diego, California from 2006 to 2016.
In June 2018, Kim was barred by FINRA after he consented to the sanction and to the entry of findings that he made unsuitable recommendations to numerous senior customers, who were retiring or had retired that they concentrate their retirement assets and liquid net worth in speculative and illiquid securities. According to FINRA, many of the customers had little or no investment experience other than their 401(k) and pension plans and had never purchased the alternative investments recommended by Kim. “Kim’s recommendations were unsuitable for these customers because the speculative and illiquid nature of these investments were inconsistent with the customers’ moderate or conservative investment objectives and risk tolerances. In addition, Kim’s recommendations resulted in an undue concentration of the customers’ retirement assets and liquid net worth in speculative and illiquid investments. Kim failed to disclose to his customers the risks associated with these products, including that the securities were speculative and illiquid. As a result of these recommendation, Kim’s customers suffered substantial losses. The findings also stated that in order to circumvent the member firm’s procedures, Kim entered inaccurate and inflated net worth, liquid net worth and investment experience figures for certain customers on their new account forms and other documents so that they appeared eligible to purchase certain speculative investments. The firm’s procedures limited the amount of a customer’s net worth that could be concentrated in alternative investments.”
Kim has been the subject of 23 customer complaints between 2007 and 2018, according to his CRD report. Recent complaints include:
- February 2018. “Wrongful conduct; breach of fiduciary duty; breach of statement of claim alleged wrongful conduct, breach of fiduciary duty, breach of written contract; violation of state & federal securities laws in connection with investments purchased from 2010-2013.” The customer is seeking $200,000 in damages and the case is currently pending.
- July 2017. “Statement of claim alleged breach of fiduciary duty, breach of written contract, breach of oral contract, financial abuse, violations of state and federal securities laws in connection with investments purchased from 2006-2014.” The customer is seeking $300,000 in damages and the case is currently pending.
- June 2017. “Breach of fiduciary duty, unsuitable investments, breach of contract, violations state and fed securities laws with respect to DPPS, structured products, mutual fund investments made from 2001-2014.” The customer is seeking $150,000 in damages and the case is currently pending.
- May 2017. “Wrongful conduct, breach of fiduciary duty, breach of oral & written contract, violation of state & federal securities laws, violation of FINRA rules of fair practice and NYSE rules in connection with DPPS, third party investments, structured products and mutual funds purchased from 2008-2015.” The customer is seeking $300,000 in damages and the case is currently pending.
- April 2017. “Breach of fiduciary duty, unsuitable investments, breach of contract, viol of state and federal securities laws.” The customer is seeking $350,000 in damages and the case is currently pending.
- April 2017. “Wrongful conduct, breach of fiduciary duty, breach of written contract, breach of oral contract.” The customer is seeking $150,000 in damages and the case is currently pending.
- March 2017. “Breach of fiduciary duty, unsuitable investments, breach of contract, viol state and fed securities laws in connection with DPPS, structured products and mutual funds purchased from 2010 to 2014.” The customer sought $550,000 in damages and the case was settled for $175,000.
- March 2017. “Wrongful conduct, breach of fiduciary duty, breach of written contract, breach of oral contract.” The customer is seeking $280,000 in damages and the case is currently pending.
- March 2017. “Wrongful conduct, breach of fiduciary duty, breach of oral contract, breach of written contract.” The customer is seeking $1 million in damages and the case is currently pending.
- January 2017. “Claim alleged breach of fiduciary duty, breach of written contract, breach of oral contract, violations of state and federal securities laws in connection with direct investments, c share mutual funds, structured notes and annuities purchased from 2008-2011.” The customer is seeking $220,000 in damages and the case is currently pending.
- September 2016. “Claimants alleged wrongful conduct, breach of fiduciary duty, breach of written contract, breach of oral contract, in connections with investments purchased from 2008-2013.” The customer sought $450,000 in damages and the case was settled for $245,000.
- September 2016. “Breach of fiduciary duty; breach of written contract; breach of oral contract; violation of state and federal securities laws in connections with investments purchased in 2009-2012.” The customer sought $450,000 in damages and the case was settled for $115,000.
- August 2016. “Negligence; Suitability; Negligent Misrepresentation; Fraud; Financial Elder Abuse.” The customer sought $500,000 in damages and the case was settled for $1,345,000.
- February 2016. “Claim alleged unsuitable investments, breach of fiduciary duty, misrepresentation and omissions in connection with investments purchased from 2012-2014.” The customer sought $100,000 in damages and the case was settled for $90,000.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Independent Financial Group, LLC may be liable for investment or other losses suffered by Kim’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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