Our firm is investigating Merrill Lynch, Pierce, Fenner & Smith Incorporated financial advisor and registered broker David Y. Kim (CRD# 4976347) of Wyomissing, Pennsylvania for potential investment-related misconduct.
Financial Advisor’s Career History
Based on his BrokerCheck report, David Y. Kim has been registered with Merrill Lynch, Pierce, Fenner & Smith Incorporated since August/September 2005, working from its Wyomissing, Pennsylvania office.
His reported employment history reflects the following investment-related roles:
- Merrill Lynch, Pierce, Fenner & Smith Incorporated — Financial Advisor (05/2005 to Present).
- Bank of America, N.A. — Financial Advisor (10/2012 to Present).
David Y. Kim Fraud Allegations and Investor Complaints Explained
FINRA’s BrokerCheck report reflects one disclosed customer dispute for David Y. Kim.
Customer Dispute Alleging Unauthorized Trading (Structured Products)
According to the disclosure, a client alleged unauthorized trading in the client’s account in September 2021 involving structured products.
The complaint was received on December 22, 2021, and the matter was reported as settled with a status date of December 27, 2021. The report lists a settlement amount of $38,196.01 and indicates no individual contribution by Mr. Kim.
Although the disclosure lists alleged damages as $0.00, it also states that damages were “not specified,” which is relevant when evaluating the customer’s claimed harm versus how damages were ultimately presented in the report.
Disclosures (for context):
- Customer Dispute — Settled: Alleged unauthorized trading (September 2021) in structured products; complaint received 12/22/2021; status date 12/27/2021; settlement $38,196.01; individual contribution $0.00.
To obtain a copy of David Y. Kim’s FINRA BrokerCheck report, visit this link.
Robert Wayne Pearce Is Committed to Recovering Your Investment Losses
Ruling part 1.
FINRA Rule 2010 is a broad conduct standard requiring member firms to observe “high standards of commercial honor and just and equitable principles of trade.” In an unauthorized trading dispute, Rule 2010 is commonly implicated because placing transactions without a customer’s authorization can be framed as conduct inconsistent with fair dealing and ethical sales practices.
Ruling part 2.
FINRA Rule 2111 (Suitability) governs a broker’s obligation to have a reasonable basis for recommendations and, when customer-specific suitability applies, to align recommendations with the customer’s investment profile. Where the alleged activity involves structured products, suitability issues can be intertwined with authorization issues because the analysis often considers what was recommended, what the customer’s objectives/risk tolerance were, and whether the customer actually approved the transactions at issue.
Ruling part 2.
FINRA Rule 3260 (Discretionary Accounts) generally prohibits exercising discretionary power in a customer’s account unless the customer has provided prior written authorization and the firm has accepted the account in writing. In practice, an “unauthorized trading” allegation may be evaluated through this lens when the facts suggest trades were placed without obtaining the required approvals or without valid discretionary authority for the transactions executed.
The Law Offices of Robert Wayne Pearce, P.A. is a nationally recognized securities law firm representing investors in FINRA arbitration and securities fraud cases on a contingency fee basis. Robert Wayne Pearce, the founding attorney, has more than 45 years of experience recovering millions for victims of broker misconduct and investment fraud. He previously defended major brokerage firms and now uses that insight to protect investors nationwide. To discuss your case directly with Mr. Pearce, call (800) 732-2889 or email pearce@rwpearce.com for a free consultation.