Paul Sangyop Lee: $250K Complaint Against Kingswood Advisor

A recent investor complaint against Fullerton, California financial advisor Paul Sangyop Lee (CRD# 5541067) alleges that his advice resulted in six-figure damages. Financial Industry Regulatory Authority records show that he is registered as a broker with Kingswood Capital Partners and an investment advisor with Kingswood Wealth Advisors.

Mr. Lee’s BrokerCheck report discloses two investor complaints. The most recent, filed in May 2026, alleges that as a representative of Kingswood Capital Partners, he recommended an unsuitable investment in an Inspired Healthcare Capital liquidity fund. The pending complaint alleges damages between $50,000 and $100,000.

An earlier investor complaint, filed in May 2026, alleges that as a representative of Kingswood Capital Partners, he misrepresented and recommended unsuitable real estate investment trust products. The pending complaint alleges damages of $250,000.

FINRA rules stipulate that brokers like Mr. Lee must recommend only investments and investment strategies that meet a standard called suitability. Outlined by FINRA Rule 2111, which has since been superseded by Regulation Best Interest, this standard describes the need for brokers to “have a reasonable basis to believe that a recommended transaction or investment strategy” is appropriate for a customer’s investment profile, which includes their age, investment background, net worth, financial situation, risk tolerance, investment goals, and other concerns. The broker must have a reasonable basis to believe a recommendation is suitable for at least some investors and that it is reasonable for the customer they’re making it to. An investment without principal protection, for instance, might be considered unsuitable for conservative investors with a low risk tolerance. Brokers who recommend unsuitable investments or strategies may be held liable in the event of losses.

According to the Financial Industry Regulatory Authority, Paul Sangyop Lee holds 17 years of securities industry experience. Based in Fullerton, California, he has been registered as a broker with Kingswood Capital Partners and an investment advisor with Kingswood Wealth Advisors since 2021. His past registrations include Mirae Asset Wealth Management, Genter Advisors, Private Advisory Group, TD Ameritrade, Wells Fargo Advisors, Merrill Lynch, Morgan Stanley & Company, and Ameriprise Financial Services. His credentials include the passage of five securities industry qualifying exams: the Securities Industry Essentials Examination, or SIE; the Uniform Combined State Law Examination, or Series 66; the General Securities Principal Examination, or Series 24; the Futures Managed Funds Examination, or Series 31; and the General Securities Representative Examination, or Series 7. He holds 37 state licenses. (Information current as of June 4, 2026.)

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