Finra charges former Morgan Stanley broker with misleading client about account size
Kim Dee Isaacson also allegedly made unauthorized trades in the 71-year-old client's account.
Finra has charged a former Morgan Stanley broker with misleading a client about the size of the client’s account, making unauthorized trades and trying to settle the matter directly with the client rather than involving the firm.
In a June 9 enforcement complaint, the Financial Industry Regulatory Authority Inc., the broker-dealer self-regulator, alleges that Kim Dee Isaacson told his client that the client’s account was worth $3.1 million more than its actual value. Finra said that Mr. Isaacson falsified the account balance in phone calls with the client from May 2010 until January 2014 in order to conceal that the investments were not achieving the 4% to 6% growth that Mr. Isaacson promised.
Mr. Isaacson also made 360 unauthorized trades and continued to hold stock despite the 71-year-old client’s instructions to sell. The client held 22 accounts that totaled about $27 million. Finra did not reveal the client’s name.
Mr. Isaacson voluntarily departed Morgan Stanley in February 2014, as the firm was reviewing whether he had given clients inaccurate information about the value of their holdings. He now is a broker with Ameriprise Financial Services Inc. in Midvale, Utah, according to his BrokerCheck profile. He has been employed by Ameriprise since February 2014.
Finra is seeking unspecified monetary sanctions against Mr. Isaacson from a hearing panel.
Mr. Isaacson did not immediately respond to a call to his Ameriprise office in Utah. He has four customer disputes listed on his BrokerCheck profile.
Learn more about reprints and licensing for this article.
