Independent Financial Group - Law Offices of Robert Wayne Pearce

Apr 13, 2020

Former Independent Financial Group Stockbroker Jeffrey Schwebach Suspended for Engaging in Private Transactions

Jeffrey Schwebach of Sioux Falls, South Dakota submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he has been suspended for allegedly engaging in unapproved private securities transactions in violation of FINRA Rules 3280 and 2010. From November 2010 to June 2018, Mr. Schwebach was registered with Independent Financial Group (IFG) as a General Securities Representative and Investment Company Products/Variable Contracts Representative. According to the FINRA findings, Jeffrey Schwebach sold $895,000 Woodbridge promissory notes to 18 investors, 13 of whom were his firm’s customers and received $19,534 in commissions. The findings also stated that Schwebach never sought approval from his firm to sell the promissory notes and instead disclosed Woodbridge as an outside business activity involving first position mortgages, not as private transactions. In addition to the FINRA findings, Schwebach allegedly falsely stated that he had not engaged in unapproved private securities transactions on annual compliance questionnaires.

Mar 11, 2019

IFG Stockbroker Barred for Unsuitable Recommendations

Kyusun Kim of San Diego, California submitted a Letter of Acceptance, Waiver and Consent (AWC) in which he was barred by the Financial Industry Regulatory Authority (FINRA) for allegedly making unsuitable recommendations in violation of NASD Rules 3110, 2310 and 2110 and FINRA Rules 4511, 2111 and 2010. In February 2006 Kyusun Kim joined Independent Financial Group LLC (IFG) as a General Securities Representative. According to FINRA, between 2008 and 2015, Kim made unsuitable recommendations to numerous senior customers who were retired. FINRA stated that Kim failed to disclose to his customers any risks associated with the products, including that the securities were speculative and illiquid. Kim was also allegedly accused of providing inaccurate and inflated net worth to certain customers so that they appeared to be eligible to purchase certain speculative investments. FINRA concluded that these customers suffered substantial losses due to Kim’s recommendations.