Tr?id=566623520170033&ev=PageView&noscript=1

ÍøÆØ³Ô¹Ï

Former LPL Advisor Sanctioned by FINRA Over Undisclosed Real Estate Venture

Posted on May 30th, 2025 at 1:43 PM
Former LPL Advisor Sanctioned by FINRA Over Undisclosed Real Estate Venture

From the desk of Jim Eccleston at ÍøÆØ³Ô¹Ï

FINRA has fined a former LPL Financial advisor and suspended him for three months after allegations surfaced that he operated a real estate development business without his firm’s approval. According to a recent FINRA Acceptance, Waiver and Consent (“AWC”), Kyle J. Kim worked alongside two associates to build and sell residential properties on six parcels of land starting in 2019.

As reported by AdvisorHub, the AWC details that Kim played an active role in the venture, helping decide which properties to develop, managing subcontractors, and overseeing project logistics. In 2023, he officially formed the business, opened a bank account in its name, and facilitated a $90,000 investment from two customers.

FINRA found that Kim failed to provide prior written notice to LPL about his involvement in the real estate business, as required under FINRA rules governing outside business activities. Additionally, he inaccurately attested on annual compliance questionnaires that he had no such outside interests. Those actions violated FINRA Rule 3270 and its broad conduct standard under Rule 2010.

LPL terminated Kim in May 2024 following the same allegations. Without admitting or denying FINRA’s findings, Kim agreed to the sanctions.

 

ÍøÆØ³Ô¹Ï LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, finra

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

If the regulators are after you, and are trying to make a case against you, and you are going to contest their allegations against you, make sure you have the best securities industry defense lawyers, ÍøÆØ³Ô¹Ï Firm. My case was spun into a combination of penalties including fines, cash settlements, CE courses and suspension. They were the best I have seen in action. When all was said and done, they had done their magic, my situation was negotiated and settled with a simple "letter of caution" and a case closed without action. It is the most important legal business decision you will ever make, make it ÍøÆØ³Ô¹Ï.

Rick R.

LATEST NEWS AND ARTICLES

1783615970 Law
July 9, 2026
FINRA Suspends Former Branch Manager for Supervisory Failures Linked to Excessive Trading and Churning

A former regional branch manager at a broker-dealer has agreed to Financial Industry Regulatory Authority (FINRA) sanctions after the regulator found that he failed to supervise registered representatives who engaged in excessive trading and churning of customer accounts.

1783525964 Law
July 8, 2026
SEC Sanctions David Lerner Associates for Regulation Best Interest Violations

David Lerner Associates has agreed to settle Securities and Exchange (SEC) charges alleging violations of Regulation Best Interest (Reg BI) that resulted in unnecessary costs to retail investors, according to InvestmentNews.

1783434190 Law
July 7, 2026
Private Credit Funds Face Mounting Redemption Pressure as Investor Sentiment Shifts

A surge in investor redemption requests has intensified pressure on private credit funds, raising concerns about liquidity and long-term stability across the asset class, as reported by The Wall Street Journal.