The securities lawyers of Gana LLP are investigating a customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against broker Kim Isaacson (Isaacson). According to BrokerCheck records Isaacson has been subject to at least four customer complaints, one employment termination, and one regulatory investigation. The customer complaints against Isaacson allege securities law violations that including unsuitable investments and misrepresentations among other claims.
In April 2016, FINRA opened an investigation for potential violations of industry rules for making verbal misrepresentations to a firm customer about the customer’s account values and performance.
In February 2016 a customer filed a complaint alleging unsuitable investments and misrepresentations with respect to equity investments in account and providing inaccurate information about the accounts performance from 2008 through 2014.
In addition in June 2015, a FINRA arbitration panel issued an award involving Isaacson awarding customers $3,586,989 in damages and making the following findings: Isaacson testified he lied to Claimant Melton about the balances in his portfolio and that he knew that Claimant Melton relied on his oral representations. The panel also found that Morgan Stanley failed to supervise and monitor the ongoing fraud over a period of four years.
Brokers have a responsibility treat investors fairly which includes obligations such as making only suitable investments for the client. In order to make a suitable recommendation the broker must meet certain requirements. First, there must be reasonable basis for the recommendation the product or security based upon the broker’s investigation and due diligence into the investment’s properties including its benefits, risks, tax consequences, and other relevant factors. Second, the broker then must match the investment as being appropriate for the customer’s specific investment needs and objectives such as the client’s retirement status, long or short term goals, age, disability, income needs, or any other relevant factor.
Isaacson entered the securities industry in 1978. From December 2008 through February 2014 Isaacson was registered with Morgan Stanley. Since February 2014 Isaacson has been associated with Ameriprise Financial Services, Inc. out of the firm’s Midvale, Utah office location.
The number of events listed on Isaacson brokercheck is high relative to his peers. According to InvestmentNews, only about 12% of financial advisors have any type of disclosure event on their records. Brokers must publicly disclose certain types of reportable events on their CRD including but not limited to customer complaints. In addition to disclosing client disputes brokers must divulge IRS tax liens, judgments, and criminal matters. However, FINRA’s records are not always complete according to a Wall Street Journal story that checked with 26 state regulators and found that at least 38,400 brokers had regulatory or financial red flags such as a personal bankruptcy that showed up in state records but not on BrokerCheck. More disturbing is the fact that 19,000 out of those 38,400 brokers had spotless BrokerCheck records.
The investment fraud attorneys at Gana LLP represent investors who have suffered securities losses due to the mishandling of their accounts. The majority of these claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.