FINRA Charges Former Morgan Stanley Financial Advisor Kim Isaacson with Unauthorized Trades and Misleading Customer Asset Values
Posted on Thursday, July 6th, 2017 at 8:56 am
Erez Law is currently investigating former Morgan Stanley financial advisor Kim Isaacson (CRD# 855618) regarding unauthorized trades and misleading a customer about the value in investment accounts. Isaacson has been registered with Ameriprise Financial Services, Inc. in Midvale, Utah since February 2014. Previously, Isaacson was registered with Morgan Stanley in Salt Lake City, Utah from 2009 to 2014, before he was terminated following “Allegations that the representative verbally provided a client inaccurate information about the client’s account performance.”
In June 2017, FINRA charged Isaacson with misleading a customer about the size of elderly client’s account, making unauthorized trades and trying to settle losses in the customer’s account directly with the client rather than involving his member firm.
The complaint alleged that Isaacson “made fraudulent misrepresentations and omissions of material facts to a customer at his member firm regarding his account values and Isaacson’s purchases and sales of securities in the customer’s accounts.” The complaint also alleges that Isaacson misrepresented to the customer the value of the customer’s account by $3.1 million to conceal the promised 4-6% return that Isaacson promised. According to the complaint, “Isaacson never corrected his misrepresentations about the value of the customer’s accounts and never told the customer that he had continued to purchase shares of a security and longer term bonds despite the customer’s explicit instructions to the contrary.” Isaacson made approximately 360 unauthorized trades in the customer’s account and misrepresented to the customer certain transactions to conceal his unauthorized trades. Additionally, Isaacson attempted to make a repayment deal to the customer without the knowledge or approval of his member firm.
Isaacson has been the subject of four customer complaints between 2005 and 2016, two of which were denied, according to his CRD report:
February 2016. “The claimant alleged, inter alia, unsuitability and misrepresentation with respect to equity investments in account and providing inaccurate information about the accounts performance – 2008 to 2014.”
April 2014. “Claimant alleged, inter alia, misrepresentation with respect to providing client with inaccurate information about the client’s account performance – 2011 to 2014.” The customer was granted $3,586,989 in damages.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Morgan Stanley may be liable for investment or other losses suffered by Isaacson’s customers.
Erez Law represents investors in the United States for claims against former Morgan Stanley financial advisor Kim Isaacson regarding unauthorized trades and misleading a customer about the value in investment accounts. If you were a client of Morgan Stanley or another firm, and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.