Initiated By
FINRA
Allegations
FINRA RULES 2010, 8210 - DARINN KIM BECAME THE REGISTERED REPRESENTATIVE FOR A CUSTOMER'S BROKERAGE ACCOUNT AND GAINED ACCESS TO THE CUSTOMER'S OTHER PERSONAL SECURITIES AND NON-SECURITIES ACCOUNTS. KIM TRANSFERRED $100,000 FROM THE CUSTOMER'S PERSONAL, NON-SECURITIES ACCOUNT AT A BANK TO A PERSONAL, NON-SECURITIES ACCOUNT AT ANOTHER BANK ALSO OWNED BY THE CUSTOMER WHO WAS UNAWARE OF THE TRANSFER, DID NOT AUTHORIZE IT AND WAS OUT OF THE COUNTRY WHEN IT OCCURRED. KIM WROTE A $90,000 CHECK PAYABLE TO HIMSELF FROM THE ACCOUNT AND FORGED THE CUSTOMER'S SIGNATURE ON THE CHECK. THE CUSTOMER DID NOT KNOW ABOUT THE CHECK AND DID NOT AUTHORIZE KIM TO SIGN HER NAME TO THE CHECK. KIM CASHED THE CHECK FOR HIS PERSONAL USE, THEREBY CONVERTING THE $90,000. KIM ELECTRONICALLY TRANSFERRED $100,000 FROM THE CUSTOMER'S SECURITIES ACCOUNT TO HER PERSONAL, NON-SECURITIES BANK ACCOUNT, MADE AN UNAUTHORIZED SALE OF SECURITIES IN THE AMOUNT OF $185,885 IN THE SECURITIES ACCOUNT, AND ELECTRONICALLY ORDERED A $190,000 CHECK TO BE DRAWN FROM THE CUSTOMER'S SECURITIES ACCOUNT WHICH WAS MADE PAYABLE TO THE CUSTOMER BUT WAS DELIVERED TO KIM'S HOME ADDRESS. THE CUSTOMER WAS NOT AWARE OF ANY OF THE TRANSACTIONS AND DID NOT AUTHORIZE ANY OF THEM. THE CUSTOMER DISCOVERED THE TRANSACTIONS AND WAS ABLE TO STOP PAYMENT ON THE $190,000 CHECK BEFORE IT WAS CASHED. BY TRANSFERRING FUNDS, SELLING SECURITIES WITHOUT AUTHORIZATION AND ORDERING A $190,000 CHECK DRAWN ON THE CUSTOMER'S SECURITIES ACCOUNT WITHOUT AUTHORIZATION, KIM MISUSED THE CUSTOMER'S FUNDS. KIM FAILED TO RESPOND TO FINRA'S REQUEST FOR INFORMATION AND DOCUMENTS.
Resolution
Decision
Bar
Bar (Permanent)
Registration Capacities Affected
All Capacities
Start Date
3/4/2014
Regulator Statement
DEFAULT DECISION RENDERED FEBRUARY 4, 2014 WHEREIN KIM IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY. THE SANCTION WAS BASED ON FINDINGS THAT KIM BECAME THE REGISTERED REPRESENTATIVE FOR A CUSTOMER'S BROKERAGE ACCOUNT AND GAINED ACCESS TO OTHER PERSONAL SECURITIES AND NON-SECURITIES ACCOUNTS OF THE CUSTOMER. THE FINDINGS STATED THAT KIM TRANSFERRED $100,000 FROM THE CUSTOMER'S PERSONAL, NON-SECURITIES ACCOUNT AT A BANK TO A PERSONAL, NON-SECURITIES ACCOUNT THAT THE CUSTOMER MAINTAINED AT ANOTHER BANK. THE CUSTOMER WAS UNAWARE OF THE TRANSFER, DID NOT AUTHORIZE IT AND WAS OUT OF THE COUNTRY WHEN IT OCCURRED. KIM THEN WROTE A $90,000 CHECK PAYABLE TO HIMSELF FROM THE ACCOUNT AND FORGED THE CUSTOMER'S SIGNATURE ON THE CHECK. THE CUSTOMER DID NOT KNOW ABOUT THE CHECK AND DID NOT AUTHORIZE KIM TO SIGN HER NAME TO IT. KIM CASHED THE CHECK FOR HIS PERSONAL USE, THEREBY CONVERTING THE $90,000. THE FINDINGS ALSO STATED THAT KIM ELECTRONICALLY TRANSFERRED $100,000 FROM THE CUSTOMER'S SECURITIES ACCOUNT WITH AN ENTITY TO HER PERSONAL, NON-SECURITIES BANK ACCOUNT AT A BANK. THEN KIM MADE AN UNAUTHORIZED SALE OF SECURITIES IN THE AMOUNT OF $185,885 IN THE SECURITIES ACCOUNT WITH THE ENTITY, AND ORDERED A $190,000 CHECK TO BE DRAWN FROM THE CUSTOMER'S SECURITIES ACCOUNT WHICH WAS MADE PAYABLE TO THE CUSTOMER, BUT INSTRUCTED THE SECURITIES ENTITY TO DELIVER IT TO HIS HOME ADDRESS. THE CUSTOMER WAS NOT AWARE OF ANY OF THE TRANSACTIONS AND DID NOT AUTHORIZE ANY OF THEM. THE CUSTOMER DISCOVERED THE TRANSACTIONS AND WAS ABLE TO STOP PAYMENT ON THE $190,000 CHECK BEFORE IT WAS CASHED. BY TRANSFERRING FUNDS, SELLING SECURITIES AND ORDERING A $190,000 CHECK DRAWN ON THE CUSTOMER'S SECURITIES ACCOUNT ALL WITHOUT AUTHORIZATION, KIM MISUSED THE CUSTOMER'S FUNDS. THE FINDINGS ALSO INCLUDED THAT KIM FAILED TO RESPOND TO FINRA'S REQUEST FOR INFORMATION AND DOCUMENTS. THE DECISION BECAME FINAL MARCH 4, 2014.
