Finra bars former broker over unsuitable alt investments, including REITs

The Financial Industry Regulatory Authority Inc. has barred Kyusun Kim, formerly a broker with Independent Financial Group, for making unsuitable recommendations that resulted in elderly clients buying illiquid alternative investments. Finra said between 2008 and 2015, Mr. Kim made unsuitable recommendations to several senior customers that they concentrate their retirement assets and liquid net worth in speculative and illiquid alternative securities. In one case, Mr. Kim recommended that a 71-year-old customer with a moderate risk tolerance liquidate his 401(k) and pension in order to invest in nontraded REITs and structured notes. In addition, he falsely inflated the net worth figures of several customers on their new account forms and other documents so that they appeared eligible to purchase certain speculative investments, Finra said in a letter of acceptance, waiver and consent. Mr. Kim began his securities career in 1997 and joined IFG in 2006. He left in 2016 and joined Sandlapper Securities. Mr. Kim left that firm in 2017 and no longer works in the securities industry. Over his career, he was involved in 23 customer disputes.