Former Broker Kim Dee Isaacson (CRD# 855618) has been barred by FINRA in
a settlement over fraudulent misrepresentation and omissions. Isaacson
began working in the securities industry in 1978 and worked for nearly
39 years with nine present and former FINRA-regulated broker-dealers.
From December 2008 to February 2014, he was registered with Morgan Stanley,
at which time he “voluntarily resigned” among the allegations
that he gave a client inaccurate statements about the client’s portfolio
The Fraudulent Misrepresentation and Omissions
A man identified by FINRA only as HM became Isaacson’s client in
1995. According to FINRA, HM transferred his accounts to Morgan Stanley
in December 2008 when Isaacson joined the broker firm.
The FINRA settlement says,
“During the Relevant Period, Isaacson earned nearly $400,000 in commissions
and advisory fees from HM’s accounts, or approximately 18.5 percent
of the total commissions Isaacson earned during the Relevant Period."
HM reportedly held approximately 17 accounts with a combined value of $27
million. In December 2009, Isaacson presented HM with a six-part asset
allocation plan with a 20-year outlook with a targeted rate of return
of up to six percent.
The men talked nearly daily about HM’s accounts and how they were
performing. HM requested a daily update and “often expressed concern
about the portfolio strategy that Isaacson devised.”
Isaacson allegedly reassured HM that the portfolio was performing per his
expectations and that fluctuations were normal.
After HM’s accounts lost more than $445,000 in May 2010, Isaacson
allegedly began misrepresenting information regarding the true performance
of HM’s portfolio.
HM reported Isaacson’s conduct, including the misrepresentation and
omissions, to Morgan Stanley in January 2014.
FINRA determined that Isaacson’s misrepresentations and omissions:
“concealed his unauthorized trades in HM’s accounts,”
and misled HM into developing and holding investments “he would
have otherwise sold if he knew the true value and holdings in his accounts.”
If you have had investments with Kim Dee Isaacson or any other broker who
you believe has benefited from misrepresentation or omissions, the experienced
investment fraud attorneys at Meyer Wilson would like to speak with you.
Call today for a free and confidential consultation.