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Paul Koch Barred from FINRA

May 12, 2022 Barred Broker

Paul Koch (CRD #: 1777599) was barred by FINRA, according to his BrokerCheck record, accessed on May 8, 2022. If you want to learn more about Paul Koch’s conduct as a broker, keep reading.

Bar by FINRA

In an Acceptance, Waiver, and Consent (AWC) agreement filed on March 16, 2022, Paul Koch consented to the entry of findings that he refused to provide documents and information per FINRA request in February 2022.

This request was related to a FINRA investigation into allegations made by UBS Financial Services in an amended Form U5, where the firm claimed Paul Koch had been terminated for recommending high-risk and unsuitable outside investments in businesses where his wife served as a partial owner.

The amended U5 also alleges that Paul Koch and his wife “diverted funds from these outside investments and accounts for their personal gain.”

The AWC alleges that, through his alleged refusal to provide documents and information, Paul Koch violated FINRA Rules 8210 and 2010.

FINRA Rules 8210 and 2010

FINRA Rule 8210 mandates that FINRA members must comply with requests for information, documents, or testimony in connection with FINRA investigations.

FINRA Rule 2010 requires brokers to maintain high standards of professional conduct. Violations of many rules qualify as automatic violations of Rule 2010.

Sanctions

Paul Koch consented to a permanent bar from associating with FINRA members in all capacities, beginning on March 16, 2022.

You can read the full AWC here.

Secret Service Investigation

On October 22, 2021, Paul Koch informed RBC Capital Markets that he was under investigation by the United States Secret Service regarding allegations of possible misconduct at the time of his voluntary resignation from the firm.

Investor Dispute

In a dispute filed on May 8, 2019, multiple clients and their LLC alleged that Paul Koch and his wife engaged in theft, conversion, and/or misappropriation involving the recommendation of risky and unsuitable investments.

The clients alleged that Paul Koch recommended investments in outside businesses where his wife was a partial owner and that Paul Koch and his wife diverted funds from these investments and accounts for their own personal gain.

The dispute identifies these businesses as second-hand clothing stores, janitorial services, hair-cutting businesses, housing developments, and venture capital enterprises.

The clients sought $1,000,000 in damages and received a settlement of $3,750,000.

Background Information

Paul Koch 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
  • Series 6 - Investment Company Products/Variable Contracts Representative Examination

He has also worked for the following firms:

  • RBC Capital Markets (CRD#:31194)
  • UBS Financial Services (CRD#:8174)
  • Citigroup Global Markets (CRD#:7059)
  • Miller Johnson Steichen Kinnard (CRD#:694)
  • John G. Kinnard and Company (CRD#:466)
  • Prudential Securities (CRD#:7471)
  • Piper Jaffray (CRD#:665)
  • Connecticut Mutual Financial Services (CRD#:173)

Kurta Law Can Help

If you worked with Paul Koch and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and 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.