Daily Archives: June 27, 2018

Attention Kenny Kim, IFG Investors

If you were an investor of Kyusun “Kenny” Kim of IFG, please call 1-866-817-0201 to speak to an attorney about your rights for recovery.  Most cases are handled on a contingency basis, where the attorney does not receive fees unless there is a recovery.

Mr. Kim has been accused, and ultimately barred from the securities industry, by regulators  for systematically committing securities violations in the accounts of senior investors for the time period of 2006 through 2015.  He is accused of both of recommending unreasonably risky, or unsuitable investments, to senior investors, and of falsifying the documents of the investors to allow him to convey to his supervisors that the recommendations were suitable.

Invest photo 2As a broker, Mr. Kim’s actions are governed by the Financial Industry Regulatory Authority (FINRA).  FINRA has a suitability rule that requires that a broker have a reasonable basis for believing that a recommended transaction or investment strategy is suitable for the customer based on the customer’s investment profile, which includes, among other factors,
the customer’s age, financial situation and needs, investment experience, and risk
tolerance.

Kim was selling alternative investments to seniors.  Alternative investments are investment other than stocks, bonds and mutual funds.  They include REITs that do not trade on a stock exchange and structured notes.  Though structured notes may look like bonds or mutual funds, such investments contain a derivative component that make the investment extremely risky and speculative in nature.  An investor may need to speak to an attorney just to confirm an investment is actually a structured note.  Such recommendations were improper for investors with conservative or moderate risk tolerances.

Adding to the risk, Kim improperly recommended that many of the investors unreasonably concentrate their portfolios in these alternative investments.  This only increased the level of speculation in the portfolio.

This is only the latest chapter in a long history of regulatory actions and customer lawsuits.  FINRA has indentified 23 investor lawsuits, either filed or threatened, concerning Kim.

While Mr. Kim has been expelled from the securities industry, this does little to compensate investors who have lost their life savings.  Jeffrey Pederson has represented investors across the country in similar suits in front of FINRA.  Please call for a free and confidential consultation.

 

MVP REIT Loss Recovery

If you lost money in MVP REIT I, MVP REIT II or Parking REIT, please call 1-866-817-0201 to speak to a lawyer about potential loss recovery.  Most cases are handled on a contingency basis, where the attorney does not receive fees unless there is a recovery.

The Financial Industry Regulatory Authority (FINRA) is investigating whether MVP American Securities violated federal securities laws or the authority’s rules when it raised money from investors from 2012 to 2017.  This was disclosed in a corporate filing filing with the Securitites and Exchange Commission concerning Parking REIT, the subsequent entity of MVP REIT I and II.

Michael Shustek, through MVP American, raised approximately $180 million from sales of MVP I and II.  Though the exact nature of the investigation is still unknown, the most likely violation would be the sale of the investments with an undisclosed conflict of interest.The investigation does not only concern MVP American, but also Shustek.

investingstockphoto 1Other reports critical of Shustek and MVP state the two engaged in behavior that was abusive to investors.  This was done by having the REIT buy and sell the same six properties repeatedly, with little to know economic motivation to do so.  More details concerning this investigation can be found in the Las Vegas Review Journal.

These highly aggressive investment may also be unsuitable for investors seeking only moderate risk or retirement income.  The sale of such an unsuitable investment is a securities violation and may entitle an investor to recovery of losses.

This is not the first time Shustek has been in trouble with securities regulators.  In 1999, Nevada regulators investigated him for potential securities violations in running Del Mar Mortgage.  He has also been previously investigated by the SEC for his dealings with Vestin real estate for utilizing misleading information in sales presentations.

Jeffrey Pederson represents investors around the country in arbitrations in front of FINRA.  Please call for a free initial consultation.