Former Broker Kim Dee Isaacson (CRD# 855618) has been barred by FINRA in a settlement over fraudulent misrepresentation and omissions. Isaacson began working in the securities industry in 1978 and worked for nearly 39 years with nine present and former FINRA-regulated broker-dealers.
From December 2008 to February 2014, he was registered with Morgan Stanley, at which time he “voluntarily resigned” among the allegations that he gave a client inaccurate statements about the client’s portfolio performance.
The Fraudulent Misrepresentation and Omissions
A man identified by FINRA only as HM became Isaacson’s client in 1995. According to FINRA, HM transferred his accounts to Morgan Stanley in December 2008 when Isaacson joined the broker firm.
The FINRA settlement says,
“During the Relevant Period, Isaacson earned nearly $400,000 in commissions and advisory fees from HM’s accounts, or approximately 18.5 percent of the total commissions Isaacson earned during the Relevant Period.”
HM reportedly held approximately 17 accounts with a combined value of $27 million. In December 2009, Isaacson presented HM with a six-part asset allocation plan with a 20-year outlook with a targeted rate of return of up to six percent.
The men talked nearly daily about HM’s accounts and how they were performing. HM requested a daily update and “often expressed concern about the portfolio strategy that Isaacson devised.”
Isaacson allegedly reassured HM that the portfolio was performing per his expectations and that fluctuations were normal.
After HM’s accounts lost more than $445,000 in May 2010, Isaacson allegedly began misrepresenting information regarding the true performance of HM’s portfolio.
HM reported Isaacson’s conduct, including the misrepresentation and omissions, to Morgan Stanley in January 2014.
FINRA determined that Isaacson’s misrepresentations and omissions:
“concealed his unauthorized trades in HM’s accounts,” and misled HM into developing and holding investments “he would have otherwise sold if he knew the true value and holdings in his accounts.”
If you have had investments with Kim Dee Isaacson or any other broker who you believe has benefited from misrepresentation or omissions, the experienced investment fraud attorneys at Meyer Wilson would like to speak with you. Call today for a free and confidential consultation.
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