According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Kim Kunz (Kunz), previously associated with Westpark Capital, INC., has at least 2 disclosable events. These events include one customer complaint, one regulatory event, alleging that Kunz recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $60,000.00 on July 08, 2025.
The claimants filed this action against Respondent relative to their purchase of GWG L Bonds for 1) breach of contract pursuant to the customer agreements; 2) breach of fiduciary duty of failing to act in Claimants’ best interests, to deal fairly and honestly with the Claimants, to observe fair business practices and equitable principles of trade as embodied in the standards of the securities industry, FINRA Rules, and Respondent’s own internal policies, to make only suitable investments and not to knowingly or negligently make material misrepresentations and omissions to Claimants; 3) failure to supervise by neglecting its duty to properly supervise and control its agents pursuant, but not limited, to Section 20(a) of the 1934 Securities and Exchange Act, FINRA Rule 3111, and Section 342 of the NYSE Rules; 4) negligence and gross negligence; 5) misrepresentations and omissions, 6) violation of FINRA Rules, 7) violation of the federal securities laws, 8) violation of the California Securities Act and 9) violation of the Best Interest Obligations (Reg B1).
FINRA BrokerCheck shows a final customer complaint on June 30, 2025.
Without admitting or denying the findings, Kunz consented to the sanctions and to the entry of findings that he violated FINRA Rule 2010 by associating with his member firm while subject to a three-month, all capacities suspension from associating with any member firm. The findings stated that Kunz entered into an AWC and was suspended. This suspension also rendered Kunz statutorily disqualified during the period of the suspension. In addition, Kunz’s consent to findings that he willfully violated Regulation Best Interest rendered him statutorily disqualified with respect to association with a member firm. Notwithstanding the notice of suspension, he received from FINRA and his statutory disqualification, Kunz continued to engage in securities business throughout his suspension and did not inform his customers that he was suspended. During his\<char_lb_r>\, suspension, Kunz continued to communicate with his firm customers about their accounts and specific investments. On approximately 20 occasions, Kunz relayed customer orders by telephone and email to another registered representative at his firm, who then placed the requested trades in the customers’ accounts. The findings also stated that because Kunz was statutorily disqualified during the period of the suspension and was also statutorily disqualified with respect to association with a member because of his willful violation of Regulation Best Interest, his continued association with his firm violated Article III, Section 3(b) of FINRA’s By-Laws.
Brokers are required to adhere to the SEC’s Regulation Best Interest (Reg BI) standard of care under the Securities Exchange Act of 1934 which establishes a ‘best interest’ standard for broker-dealers and associated persons. This standard applies when brokers make recommendations to retail customer for any securities transaction or investment strategy involving securities, including recommendations of types of accounts. Reg BI is drawn from fiduciary principles that include an obligation to act in the retail investor’s best interest and the broker is prohibited from placing their own interests ahead of the investor’s interest.
There are several different aspects of the rule that brokers must comply with. One of which is the care obligations which requires brokers to form a reasonable belief that their investment advice and recommendations are in the retail investor’s best interest. The care obligations includes three components. First, the advisor must have an understanding of the potential risks, rewards, and costs associated with a product, investment strategy, account type, or series of transactions. Next, the advisor must have a reasonable understanding of the specific retail investor’s investment profile. The customer’s profile information generally includes an investor’s financial situation and needs; investments; assets and debts; marital status; tax status; age; investment time horizon; liquidity needs; risk tolerance; investment experience; investment objectives and financial goals; and any other information the retail investor may disclose in connection with the recommendation or advice. Using the foregoing information, the associated person then must consider reasonably available investment option to accomplish the investor’s goals as well as alternative investment options that may be cheaper or other important qualities. Finally, the advisor must conclude that there is a reasonable basis to believe that the recommendation being provided is in the investor’s best interest.
In addition to specific investments being recommended, under Reg BI, a broker must also understand the type of account that their client would need in order to meet their care obligations. The SEC has stated that the type of securities account an investor has can greatly affect a customers’ costs and overall investment returns. Further, different account types can offer and support different features, products, securities, or services, and account type would not be appropriately applied in a one size fits all manner.
Kunz has been in the securities industry for more than 44 years. Kunz has been registered as a Broker with Westpark Capital, INC. since 2017.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.