UNAUTHORIZED INVESTMENT/FAILURE TO FOLLOW INSTRUCTIONS.

$35,000.00

UNATHORIZED ANNUITY INVESTMENT. ACTIVITY PERIOD IS 10/17/15 TO 1/19/16.

$18,226.69

FINRA

Kuchel was named a respondent in a FINRA complaint alleging that, on numerous occasions, he failed to appear at FINRA requested on-the-record testimony in connection with an investigating into, among other things, certain mutual fund transactions effected by several registered representatives, including Kuchel, at his member firm. The findings stated that Kuchel's repeated delays and failures to provide the requested on-the-record testimony, spanning nearly nine months from the original request, materially impeded the investigation with Kuchel in connection with certain mutual fund transactions in his customers' accounts and whether he participated in a private securities transaction.

Decision

Bar (Permanent)

All Capacities

Indefinite

6/6/2016

Default decision rendered May 9, 2016. The sanction was based on findings that Kuchel failed to provide complete testimony to FINRA during the course of an investigation. The findings stated that Kuchel did not substantially comply with the request for his testimony and failed to appear for his rescheduled testimony. Kuchel's delays-and ultimate failure to provide his testimony-impeded FINRA's investigation. The decision became final June 6, 2016.

UNAUTHORIZED TRADING

$28,696.00

$31,875.00

LPL Financial LLC

Discharged

Failure to appear for required on the record interview with FINRA.

CLAIMANTS ALLEGE UNSUITABLE RECOMMENDATIONS, NEGLIGENCE, BREACH OF FIDUCIARY DUTY, FRAUD, NEGLIGENT FAILURE TO SUPERVISE AND FAILURE TO CONDUCT DUE DILIGENCE IN RELATION TO THE SALE OF FIVE NON-TRADED PRIVATE PLACEMENTS TO THE CLAIMANTS.

$499,999.00

$50,000.00

CLAIMANT ALLEGES LACK OF SUITABILITY, BREACH OF FIDUCIARY DUTY, MISREPRESENTATION AND FAILURE TO SUPERVISE IN CONNECTION WITH THE SALE OF VARIOUS NON-TRADED REIT AND TENANT IN COMMON REAL ESTATE INVESTMENTS.

$2,000,000.00

$277,468.00

ON OR ABOUT AUGUST 6, 2012, CROWN CAPITAL SECURITIES, L.P. ("CROWN CAPITAL") AND ITS REGISTERED REPRESENTATIVE, ERIC W. KUCHEL WERE SUED IN A FINRA ARBITRATION BY HIS FORMER CUSTOMER, INDIVIDUALLY, AS TRUSTEE OF IRA, AND AS TRUSTEE OF THE TRUST AND AS SUCCESSOR TRUSTEE (COLLECTIVELY, "CLAIMANTS"). THE STATEMENT OF CLAIM ALLEGES THAT CERTAIN DIRECT PARTICIPATION PROGRAMS PURCHASED BETWEEN 2003 AND 2012 WERE UNSUITABLE AND OVERLY CONCENTRATED IN REAL ESTATE. CLAIMANTS ALSO ALLEGED THAT CROWN CAPITAL FAILED TO SUPERVISE ITS REGISTERED REPRESENTATIVES. CLAIMANTS ALSO ACCUSED RESPONDENTS OF FINANCIAL ELDER ABUSE. CLAIMANTS SOUGHT TO RECOVER APPROXIMATELY $2,000,000 IN PORTFOLIO LOSSES, PROSECUTION FEES, COSTS, DISGORGEMENT OF COMMISSIONS, INTEREST, AND TREBLE DAMAGES FOR FINANCIAL ELDER ABUSE. RESPONDENT ERIC W. KUCHEL VIGOROUSLY DENIED CLAIMANTS' ALLEGATIONS AND HIS CLAIMS FOR RELIEF. BEFORE THE ARBITRATION COMMENCED, CLAIMANTS DISMISSED WITH PREJUDICE: (I) ALL CLAIMS ASSERTED BY THE TRUST; THE CASE WAS TRIED BEFORE A THREE MEMBER FINRA ARBITRATION PANEL SITTING IN SAN FRANCISCO, CALIFORNIA, FROM AUGUST 11 TO AUGUST 15, 2014. EVIDENCE WAS PRESENTED AT THE ARBITRATION HEARING. AFTER CLAIMANTS PRESENTED THEIR CASE-IN-CHIEF, RESPONDENTS MOVED FOR A DIRECTED VERDICT ON ALL COUNTS. THE PANEL DELIBERATED AND GRANTED THE MOTION AS TO THE FINANCIAL ELDER ABUSE CLAIM FOR RELIEF. RESPONDENT PROCEEDED WITH THE DEFENSE, PRINCIPALLY ASSERTING THAT THE INVESTMENTS WERE SUITABLE FOR CLAIMANTS AND THAT RESPONDENT MADE NO MISREPRESENTATION OR OMISSION OF MATERIAL FACT. CLAIMANTS INITIALED OR SIGNED OVER 200 INVESTMENT DOCUMENTS WHICH DISCLOSED IN PLAIN-ENGLISH THE MATERIAL TERMS AND RISKS OF THE INVESTMENTS. RESPONDENT ALSO ARGUED THAT CLAIMANTS WERE NOT DAMAGED. RESPONDENT PRESENTED EVIDENCE DEMONSTRATING THAT THE 2003-2006 INVESTMENTS HAD REALIZED RETURNS WHEREAS THE UNREALIZED RETURNS FOR THE 2007-2010 INVESTMENTS WERE CAUSED BY THE WORLDWIDE MARKET COLLAPSE, NOT ANY ACTIONABLE CONDUCT ON THE PART OF THE RESPONDENT. AFTER CONSIDERING THE PLEADINGS, THE TESTIMONY AND EVIDENCE PRESENTED AT THE HEARING, THE PANEL AWARDED CLAIMANT COMPENSATORY DAMAGES IN THE AMOUNT OF $277,468.00 AGAINST CROWN CAPITAL AND ERIC KUCHEL JOINTLY AND SEVERALLY. THE PANEL DENIED ALL OF CLAIMANTS' OTHER RELIEF. THE PANEL'S AWARD IS DEVOID OF ANY FINDINGS OF FACTS, THUS, THERE IS NO SPECIFIC MISCONDUCT ATTRIBUTED TO ERIC KUCHEL.