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Former advisor to NFL player barred by FINRA following allegations of misconduct

On Behalf of | Mar 23, 2022 | Financial Advisor Misconduct

A former financial advisor for UBS Wealth Management has been barred by the Financial Industry Regulatory Authority over allegations of misappropriating the assets of a former NFL player, reports Financial Advisor.

FINRA took the action against Paul Ronald Koch of Wayzata, Minnesota, who had managed the account of former Carolina Panthers defensive end Charles Johnson. Koch was accused of recommending risky and unsuitable investments for Johnson in outside business ventures where his wife Michelle was a partial owner. FINRA also said that Paul and Michelle Koch diverted funds from those outside investments and accounts for their own personal gain from 2011 to 2018.

The authority stated that Paul Koch had not cooperated with its investigation into the allegations, in violation of Rule 8210. Koch signed a letter of acceptance, waiver and consent that was finalized last week but did not admit or deny the allegations. The U.S. Secret Service is also investigating Koch for financial misconduct.

Johnson filed a federal lawsuit in South Carolina in 2019 claiming that Paul Koch breached his fiduciary duty when he controlled Johnson’s finances. The suit named Michelle Koch and also sought $10 million from UBS. Johnson dismissed his claims against Paul Koch in May 2021.

Koch departed from UBS in 2018 to join RBC Wealth Management-U.S. and resigned voluntarily from RBC last month. A lawyer for Koch said his client has denied all allegations of misconduct.

 At Lewitas Hyman, we represent clients nationwide who are the victims of unauthorized trading, breaches of fiduciary duty and other forms of financial adviser misconduct and securities fraud. Our team of lawyers brings a diverse range of knowledge and experiences to our clients’ cases. If your financial adviser made trades without your consent, you may be able to pursue a lawsuit to recoup your losses. We’ll help you understand your rights and options. Contact us at (888) 655 6002 or email our team to learn more.