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Former RBC Capital Markets Financial Advisor Paul Koch Barred by FINRA

Paul Koch (CRD#: 1777599) is a previously registered Broker and Investment Advisor.

Broker’s Background

Paul Koch entered the securities industry in 1987 and previously worked for RBC Capital Markets, LLC; UBS Financial Services, Inc.; Citigroup Global Markets, Inc.; Miller Johnson Steichen Kinnard, Inc.; John G. Kinnard & Company, Inc.; Prudential Securities, Inc.; Piper Jaffray, Inc.; and Connecticut Mutual Financial Services, Inc.

Current And Past Allegations Of Conduct Leading To Investment Loss

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in March 2022, FINRA sanctioned Paul Koch, barring him from all capacities indefinitely beginning March 16, 2022. The FINRA sanction states, “Without admitting or denying the findings, Koch consented to the sanction and to the entry of findings that he refused to provide documents and information requested by FINRA in connection with its investigation into an amended Form U5 filed by Koch’s member firm disclosing allegations that he recommended risky and unsuitable investments in various outside business ventures where his wife was a partial owner, and that Koch and his wife diverted funds from the outside investments and accounts for their personal gain. The findings stated that although Koch initially cooperated with FINRA’s investigation, he ceased doing so.”

For a copy of the FINRA sanction, click here.

In addition, Paul Koch has been the subject of three customer complaints, including the following:

  • October 2021 — “Mr. Koch 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.”
  • February 2021 — “The Financial Advisor is not named as a defendant in the federal lawsuit, but is the subject of certain allegations in the federal lawsuit that he was an alter ego of defendants involved in breach of fiduciary duty, negligence and conversion of funds.” The customer dispute was settled for $100.
  • May 2019 — “Time frame: July 2011-October 2018 Allegations: The Claimants and their LLC allege that the FA recommended risky and unsuitable investments in various outside business ventures where his wife was a partial owner in janitorial businesses, second hand clothing stores, hair cut establishments, housing developments and venture capital enterprises. They also allege that the FA and his wife diverted funds from these outside investments and accounts for their personal gain. A First Amended Statement of Claim has been received alleging a breach in fiduciary duties. The claims related to these investments are for recovery of damages related to theft, conversion, and/or misappropriation that may have been related to the investments.” The customer dispute was settled for $3.75M.
  • December 2005 — “CLIENT ALLEGES THAT THE PURCHASE OF ETW WAS MISREPRESENTED -SEPTEMBER 2005. DAMAGES UNSPECIFIED.” The customer dispute was denied.

For a copy of Paul Koch’s FINRA BrokerCheck, click here.

We Help Investors Recover Investment Losses

The Financial Industry Regulatory Authority (FINRA) strictly prohibits financial advisors from “selling away” or selling securities and investments to clients that are not offered by the brokerage firm with which they are employed. For example, it is illegal and a violation of industry rules for a financial advisor to recommend or even suggest that a client invest in the financial advisor’s own business or a business operated by his or her friends or family. It is not necessary that the financial advisor earn any compensation for recommending an outside investment.

FINRA Rule 3280 provides: “No person associated with a member shall participate in any manner in a private securities transaction except in accordance with the requirements of this Rule. Prior to participating in any private securities transaction, an associated person shall provide written notice to the member with which he is associated describing in detail the proposed transaction and the person’s proposed role therein and stating whether he has received or may receive selling compensation in connection with the transaction; provided however that, in the case of a series of related transactions in which no selling compensation has been or will be received, an associated person may provide a single written notice.”

The purpose behind this prohibition is to ensure that a financial advisor only offers to sell securities that have been vetted by his or her employer brokerage firm through a rigorous due diligence process. Most brokerage firms have an approved list of investments, products, and research that can be provided or made available to clients. Any deviation by the financial advisor from the approved product list may constitute selling away.

The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis.  Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at mwolper@wolperlawfirm.com.

Attorney Matthew Wolper

Attorney Matthew WolperMatt Wolper is a trial lawyer who focuses exclusively on securities litigation and arbitration. Mr. Wolper has handled hundreds of securities matters nationwide before the Financial Industry Regulatory Authority (FINRA), American Arbitration Association (“AAA”), JAMS, and in state and federal court. Mr. Wolper has handled and tried cases involving complex financial products and strategies ranging from traditional stocks and bonds to options, margin and other securities-based lending products, closed/open-end mutual funds, structured products, hedge funds, and penny stocks. [Attorney Bio]