Securities Fraud and Mismanagement

Attorney and Counselor at Law

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Did the actions/inactions of my broker fall below the required standard of care?

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Paul Koch is currently barred from the securities industry. He previously served as a financial adviser (broker) for RBC and UBS. His office and many of his victims were in the Twin Cities area.

In an action filed by a former investor of Koch’s, the investor alleges that this financial advisor misappropriated approximately $2 million from the investor’s portfolio. This misappropriation took place in the time period between October 2018 and February 2022. The investor filed the suit in March 2023.

A similar suit previously resulted in a $3.75 million settlement with an investor. UBS paid this settlement in response to a suit alleging that Koch and his wife diverted funds from businesses where Koch was partial owner. He recommended these companies to his investors. These include a janitorial business, a second-hand store, venture capital enterprises, and housing developments.

Koch received a regulatory bar for his actions. The Financial Industry Regulatory Authority (FINRA), the regulator overseeing the actions for securities brokerages, barred him from the industry in March 2022. FINRA alleged that this financial advisor sold unsuitable investments in outside business ventures. He was partial owner of these businesses and diverted funds to his personal accounts, per FINRA. FINRA barred Paul Koch when he stopped cooperating with the investigation.

Paul Koch previously faced even further issues. This includes an investigation by the United States Secret Service. Though the Secrete Service did not elaborate on the basis of the charges, the nature of the other charges create a strong likelihood that they stem from money laundering.

Koch’s actions are what the securities industry refers to as “selling away.” This is when a financial advisor sells an investment to investors outside the oversight of the advisor’s employer. Securities firms are required to diligently audit and have supervisory systems to protect against such sales. We handle and have successfully handled a significant number of these suits for investors over the last 20 years.

Paul Koch used his other businesses to defraud his investors.
Many allege that Paul Koch inappropriately recommended and diverted investor funds to his companies.