Corpus Christi financial advisor Jaime Rios (CRD# 1747126) was recently sanctioned by securities regulators in connection with alleged rule violations....Read More
Steve Kwan: Austin Advisor Sanctioned over GPB Auto Sales
Earlier this month, securities regulators in Texas sanctioned Insight Wealth Management advisor Steve Kwan (CRD# 3183681). According to records provided by the Financial Industry Regulatory Authority and the Securities and Exchange Commission, the Austin, Texas representative was suspended in connection with allegations he sold unsuitable investments in GPB Automotive.
Texas State Securities Board: Kwan Unsuitably Recommended GPB
An administrative order published by the Texas State Securities Board in November 2022 describes the action against Mr. Kwan. According to the Securities Commissioner, he was registered with Madison Avenue Securities when, between 2014 and 2018, he “recommended that a number of his customers” invest in GPB Automotive. As the order notes, GPB Automotive was sued by its general partner GPB Capital in July 2017, and thereafter filed a response against GPB Capital that “made strong, incriminating counterclaims.” It was in this context that Madison Avenue Securities informed Mr. Kwan in April 2018 that it was suspending sales of interests in GPB Automotive, and further that six such investments he had sold remained pending.
The order states that Mr. Kwan “was made aware of the allegations and that [the firm] had significant concerns and had the opportunity to cancel” the pending sales. In spite of this, according to the Securities Commissioner, Mr. Kwan “continued to maintain his recommendations for the six pending sales.” In connection with these findings, Mr. Kwan consented to the entry of an order finding that he “engaged in an inequitable practice in the sale of securities,” agreeing to a 90-day suspension of his investment adviser registration.
Multiple Complaints Allege Unsuitable Investments
Mr. Kwan’s BrokerCheck report discloses four investor complaints against him. The most recent, a pending complaint filed in 2021, seeks unspecified damages in connection with an allegedly unsuitable $47,000 investment in GPB Automotive. The other three allege unsuitable investment recommendations, including investments in GPB Automotive, and settled for a total of more than $160,000.
SEC: Former Madison Avenue Securities Broker Based in Austin, Texas
According to the Financial Industry Regulatory Authority and the Securities and Exchange Commission, Steve Kwan has spent 23 years in the securities industry and is currently not registered as a broker or as an investment advisor. Additional information about his background in the securities industry is available via FINRA. (Information current as of November 23, 2022.)
Carlson Law represents investors throughout the United States in claims against financial advisors and investment firms. If you or a loved one have suffered investment losses, please call us at 888-976-6111 or complete our contact form for a free and confidential consultation.