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FINRA Reviews Ex-UBS Advisor over $3.75M Settlement

FINRA Investigates Ex-UBS Advisor over $3.75M Settlement with Pro Football Player, featured by top securities fraud attorneys, The White Law Group

Paul Koch, former UBS Financial advisor, Reportedly Sued for Unsuitable Investments

According to Financial Advisor IQ today, the Financial Industry Regulatory Authority is reviewing former UBS Financial advisor, Paul Koch (CRD#: 1777599) of Wayzata, MN,  in connection with allegations that he recommended unsuitable outside investments to a former professional football player.

Koch allegedly “recommended risky and unsuitable investments” in businesses where Koch’s wife was purportedly a partial owner, including in “janitorial businesses, second hand clothing stores, hair cut establishments, housing developments and venture capital enterprises” and then purportedly diverted funds from these investments for their personal gain, according to a 2019 customer dispute on Koch’s FINRA BrokerCheck report. The lawsuit was seeking $10 million in damages but settled for $3.75 million, according to the regulator.

Koch commented that the company “settled with claimants who will dismiss their claims against UBS and have assigned their claims against Mr. Koch to UBS,” according to his profile.

The individual who received the settlement is believed to be Charles Johnson, a former wide receiver with the NFL‘s Minnesota Vikings for the 2014-16 seasons, according to Financial Advisor IQ, citing the Star Tribune.

Johnson reportedly filed a suit in federal court in South Carolina last year alleging Koch and his wife, and MNK Holdings, which is reportedly controlled by her, of “financial improprieties,” according to the article. Johnson’s suit claims that they invested the money in various businesses owned by Koch’s wife including a janitorial service, a clothing store and a hair-care salon, according to the article. The suit also reportedly claims that the couple misappropriated hundreds of thousands of dollars for a condominium and travel, according to the article.

The UBS settlement wasn’t connected to the South Carolina lawsuit involving the same client, according to the Star Tribune. Koch’s lawyer tells the Star Tribune that Koch denies any wrongdoing.

According to Koch’s BrokerCheck, he was registered with UBS Financial from  2009 until 2018 and reportedly made the move to RBC in 2018.

Filing a Complaint against your Brokerage Firm

Brokerage firms are required to adequately supervise their advisors. They must ensure they are complying with FINRA rules.

When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

The brokerage firms can be held responsible for any losses in a FINRA arbitration claim if it is determined that they failed to properly supervise their agent.

If you are concerned about investments with Paul Koch, the securities attorneys at The White Law Group may be able to help you. For a free consultation with an attorney, please call (888) 637-5510.

The foregoing information, which is all publicly available, is being provided by The White Law Group.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois. For more information, please visit our website, www.whitesecuritieslaw.com.



Tags: , , , , , Last modified: December 1, 2022