Kyle Kim Suspended by FINRA for Alleged Undisclosed OBA

Kyle Kim (CRD #: 2446395), a broker formerly registered with The Leaders Group, was terminated by LPL Financial. This disclosure appears on his BrokerCheck record, accessed on August 12, 2025. Keep reading if you have questions regarding his alleged conduct. 

FINRA Suspension

On April 22, 2025, Kyle Kim consented to the entry of findings that he allegedly participated in an outside business activity without providing prior notice to his firm.

According to a Letter of Acceptance, Waiver & Consent (AWC), Kyle Kim and two other individuals allegedly formed an informal partnership to construct and sell residential properties and share in the profits. In June 2019, Kyle Kim allegedly formed an LLC to support this venture, and served as its managing member and controlled its bank account.

His role was allegedly also expected to include determining what parcels of land to develop, what constructions would be built, and project logistics.

Between June and December 2023, Kyle Kim allegedly arranged for two LPL Financial customers to provide a collective $90,000 to help finance the LLC’s projects.

However, he allegedly did not disclose this outside business activity to his firm in advance, including in response to questions of annual compliance questionnaires.

The AWC concluded that these allegations constituted violations of FINRA Rules 3270 and 2010.

FINRA Rule 3270 – Outside Business and Selling Away

FINRA Rule 3270 requires brokers to inform their firm of any outside business activities or any investments sold away from the firm. The brokerage firm may prohibit the activity if the firm believes the proposed activity may compromise the broker’s duties. Firms may also require brokers to seek approval of any outside business.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

Sanctions

Kyle Kim consented to the following sanctions:

• Three-month suspension from associating with FINRA members
• $5,000 fine

His suspension began on May 19, 2025, and will end on August 18, 2025. You can read the full AWC here.

Maryland Regulatory Action

On April 22, 2025, the State of Maryland suspended Kyle Kim’s registration as an investment adviser and investment adviser representative and required him to comply with conditions of registration in response to the AWC he entered with FINRA.

His suspension began on May 19, 2025, and will end on August 18, 2025.

Termination from LPL Financial

On May 21, 2024, LPL Financial fired Kyle Kim following allegations that he participated in outside business activities without notice to and approval from the firm. 

He has the following outside businesses listed on his detailed BrokerCheck record: 

• Investment advisor representative with Kyo Asset Management
• Licensed insurance agent
• Owner and investment officer for Kyo Capital Management, a residential and commercial real estate developer

Background Information 

Kyle Kim has passed the following exams: 

• Series 65 Uniform Investment Adviser Law Examination 
• Series 63 Uniform Securities Agent State Law Examination 
• SIE – Securities Industry Essentials Examination 
• Series 31 Futures Managed Funds Examination 
• Series 7 General Securities Representative Examination

During his 29 years of experience, Kyle Kim has registered with eight firms:

• The Private Client Advisory Group (CRD #: 311221) 
• LPL Financial (CRD #: 6413)
• TLG Advisors (CRD #: 111052) 
• Invest Financial Corporation (CRD #: 12984) 
• H. Beck (CRD #: 1763) 
• CitiCorp Investment Services (CRD #: 23988) 
• Dean Witter Reynolds (CRD #: 7556) 

Kurta Law Can Help 

If you have worked with Kyle Kim and have concerns about your investments, do not hesitate to contact us at 877-600-0098 or email info@kurtalawfirm.com for a free consultation. 

For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf. Do not let securities fraud go unchecked. Start your recovery process today.