Securities Arbitration Lawyer Blog
FINRA has barred Kayan Securities, Inc. broker Sun Hyung Kim from the securities industry.
If you have lost money with Sun Hyung Kim, or Kayan Securities, Inc., contact FINRA arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.
Iorio Altamirano LLP represents investors in disputes with their financial advisors and brokerage firms, such as Kayan Securities, Inc.
FINRA Letter of Acceptance, Waiver, and Consent (“AWC”)
Sun Hyung Kim and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on April 26, 2021, over the following findings:
- Between June 1, 2018, and June 19, 2019, Kim effected 162 unauthorized transactions in the brokerage accounts of one Kayan customer. In response to a FINRA Rule 8210 Request, Kim falsely stated that he had received authorization from the customer for these transactions. Kim also caused Kayan to maintain inaccurate books and records by inaccurately describing the transaction orders for the customer as “unsolicited.”
Accordingly, FINRA barred him from associating with any broker-dealer in all capacities.
Unauthorized Trading
Under FINRA Rule 2010, FINRA members and associated persons are required to observe high standards of commercial honor and just and equitable principles of trade. A registered representative’s execution of unauthorized trades in a customer’s account violates FINRA Rule 2010.
Unauthorized trading refers to transactions made by a broker in a customer’s account without the customer’s knowledge, authorization, or consent.
Between June 1, 2018, and June 19, 2019, Kim effected 162 unauthorized transactions in a customer’s brokerage accounts. Kim also failed to obtain approval from the customer before executing 162 transactions. As a result, Kim violated FINRA Rule 2010.
Providing False and Misleading Responses to FINRA Rule 8210 Request
FINRA Rule 8210 requires persons subject to FINRA’s jurisdiction to provide information in connection with FINRA investigations. Providing false or misleading information to FINRA in response to a Rule 8210 request violates both Rule 8210 and FINRA Rule 2010.
Pursuant to FINRA Rule 8210, FINRA asked Kim whether the customer authorized the 162 transactions at issue. In response, Kim twice stated that the customer provided authorization using the KakaoTalk mobile telephone application. FINRA, however, obtained the KakaoTalk records showing that the customer did not provide Kim with this authorization. Kim’s response was false. Therefore, Kim violated FINRA Rules 8210 and 2010.
Causing a Firm to Maintain Inaccurate Books and Records
FINRA Rule 4511 states that each member firm “shall make and preserve books and records as required under the FINRA rules, the Exchange Act and the applicable Exchange Act rules.” Exchange Act Rule 17a-3 requires firms to make a record of “each brokerage order, and of any other instruction, given or received for the purchase or sale of securities, whether executed or unexecuted.” This record “shall show the terms and conditions of the order or instructions.” This includes whether the order was solicited or unsolicited.
An associated person who mismarks an order causes his member firm to create an inaccurate record in violation of FINRA Rules 4511 and 2010.
Between June 1, 2018, and June 19, 2019, Kim mismarked 162 trades in the accounts of the customer as “unsolicited,” causing Kayan to have inaccurate books and records. As such, Kim violated FINRA Rule 4511 and 2010.
Sun Hyung Kim (CRD#: 2053243)
Sun Hyung Kim entered the securities industry in 1990. He has 30 years of experience in the securities industry and was registered with Kayan Securities, Inc. between March 2015 and April 2021.
His FINRA CRD shows two customer disputes. Both matters settled.
How to Recover Losses or Obtain a Free Consultation
If you have lost money with Sun Hyung Kim, or Kayan Securities, Inc., contact FINRA arbitration lawyers August Iorio and Jorge Altamirano of Iorio Altamirano LLP at august@ia-law.com, jorge@ia-law.com or toll-free at (855) 430-4010 for a free and confidential evaluation of your account.
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. We pursue FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by financial advisors and brokerage firms.