FINRA Bars Former UBS Advisor For Failing To Cooperate In Investigation

Posted on March 28th, 2022 at 8:45 AM
FINRA Bars Former UBS Advisor For Failing To Cooperate In Investigation

From the Desk of Jim Eccleston at Eccleston Law:

The Financial Industry Regulatory Authority (FINRA) has barred a former Minnesota-based UBS advisor after he failed to cooperate with FINRA’s probe into allegations that he recommended that a client invest in “risky” outside businesses, according to the settlement letter. 

The settlement bars former advisor, Paul Koch, from affiliating with FINRA member firms. Koch’s team, which managed nearly $350 million in client assets, departed UBS for RBC Wealth Management in 2018. According to the settlement, Koch failed to provide documents and information requested by FINRA that were pertinent to the investigation. UBS additionally alleged that Koch: “Recommended risky and unsuitable investments in various outside business ventures where his wife was a partial owner. Koch’s wife subsequently misappropriated the investor funds for their own personal gain”, according to the settlement letter, known as an Acceptance, Waiver and Consent (“AWC”). 

In February 2022, RBC informed FINRA and state regulators that Koch had “provided the Firm with information indicating that at the time of his voluntary resignation he was the subject of an investigation by the United States Secret Service concerning possible misconduct”, according to FINRA’s Central Registration Depository (CRD). However, Koch’s attorney noted that he did not have any further knowledge of the Secret Service investigation besides the information that he had provided to RBC. 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

 
 

Tags: eccleston law, finra, ubs

Return to Archive

TESTIMONIALS

Previous
Next

Thank You from the bottom of our hearts for all you have done for us. When we realized this was a very bad investment - we did not know where to turn for help. Then we received your name. When we called you - you were so kind to us and then agreed to help us. For this we are so very grateful. The world would be a much nicer place if there were more people like the two of you in it. We will always remember all the help and kindness you have shown us. Thank you so very very much for everything.

Wayne and Judy S.

LATEST NEWS AND ARTICLES

February 23, 2024
Advisor Accepts Industry Bar Amid FINRA Probe into Outside Business Activities

John A. Dougherty, a veteran advisor with 23 years of experience, agreed to an AWC (Acceptance, Waiver, and Consent) after refusing to cooperate with a regulatory investigation into allegations of undisclosed outside business activities.

February 22, 2024
Key Considerations for Advisors When Assessing the Financial Soundness of Annuities

While rating agencies like Fitch and S&P Global Ratings generally highlight the strength of annuity issuers, advisors still should scrutinize certain factors in their assessment process.

February 21, 2024
SEC Alleges Fraud Against Morgan Stanley and Former Executive in Block Trading Business

As reported by the Wall Street Journal, the Securities and Exchange Commission (SEC) has charged Morgan Stanley & Co. LLC and its former head of equity syndicate desk, Pawan Passi, with a multi-year fraud involving the disclosure of confidential information related to block trades.