Independent Financial Group Rep Barred For Unsuitable Sales

Kyusun Kim (CRD #: 2864085), who is a previous registered representative of Independent Financial Group, LLC (San Diego, California) consented to Financial Industry Regulatory Authority (“FINRA”) barring him in all capacities according to Kim’s submission of a Letter of Acceptance, Waiver and Consent #: 2017052705001, accepted by FINRA on June 6, 2018. Kim was found liable for making unsuitable investment recommendations.

FINRA stated that when Kim worked for Independent Group, he advised several customers to liquidate their 401(k) and pension plans, and transfer those funds to Independent Financial Group accounts so that the customers would invest with Kim. Kim had apparently recommended for customers to invest in alternative investments including non-traded REITS and structured notes.

The AWC showed that Kim’s customers were inexperienced investors who had conservative or moderate investment objectives and risk tolerances. The AWC stated that Kim’s recommendations were unsuitable because those alternative investments did not provide customers with liquidity, and were not consistent with the customers’ objectives and risk tolerances.

In the AWC, FINRA referred to more than one situation where Kim advised elderly customers to invest a large portion of their liquid net worth in the alternative investments. FINRA also stated that when Kim made those recommendations, he failed to disclose the risks. The AWC reported that Kim’s customers incurred significant losses. As a result, FINRA stated that Kim violated NASD Rules 2310 and 2110 and FINRA Rules 2111 and 2010.

Kim has reported that at least 23 Independent Financial Group, LLC customers have disputed his sales practices. Customers have brought claims of breach of fiduciary duty, breach of contract, unsuitable investments, violation of federal and state laws, financial elder abuse, negligence, misrepresentation, and fraud. So far, 13 of those customer disputes have been settled for a total of $2,995,443.00 in damages, while 9 customer disputes are pending.

The Law Office of Peter M. Spett is experienced in representing investors in cases of unsuitable investment recommendations, fraud, negligence, and the failure of brokerage firms to supervise their financial advisors. If representatives such as Kyusun Kim have traded in your account in an inappropriate manner, contact Peter M. Spett at (888) 217-4919 for a free consultation concerning the possible recovery of your investment losses.