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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

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