FINRA, the private organization that regulates all securities firms in the U.S., has permanently banned two local financial advisers who were recently fired by their firms.
The Financial Industry Regulatory Authority barred Jae Hun Kim and Mark W. Manning from associating with any FINRA members, in effect ending their careers as financial advisers, because they refused to produce documents and information for investigations.
Both men consented to the sanctions in March, according to settlements disclosed in FINRA’s May monthly report.
Kim worked for E1 Asset Management Inc. in Cortlandt Manor from 2003 to early 2024.
The matter began as a review of a customer’s pending arbitration case, according to the settlement. FINRA’s BrokerCheck public report says a complaint was received a year ago that alleged $4 million in damages concerning equities and options. Neither the settlement nor the BrokerCheck report provides details of the dispute.
In January, Kim petitioned U.S. Bankruptcy Court in White Plains for Chapter 7 liquidation. He declared nearly $1.1 million in assets consisting mostly of a life insurance policy, and about $4.4 million in liabilities, including a $4 million arbitration claim.
Kim made about $456,000 in 2021, according to the bankruptcy petition, and $10,000 in 2022.
Another seven customers have filed complaints against Kim over the past 11 years, alleging a total of $3.6 million in damages, according to the BrokerCheck report. Kim denied wrongdoing but often agreed to settle the disputes to avoid legal expenses.
The cases were settled for $2.8 million, of which Kim was personally held responsible for $85,229. One case, alleging $16,752 in damages, is pending.
Manning worked for LPL Financial in Fishkill, from 2002 to 2023, and has worked as a tax preparer for Murphy Wealth Management Group, Fishkill, since 2016.
LPL Financial fired him in October 2023 for accepting beneficiary status and acting with power of attorney, without the firm’s approval, according to the settlement and BrokerCheck report.
No other customer disputes are noted on his BrokerCheck report.
