Advisor invested clients' money in his car wash
The Mutual Fund Dealers Association (MFDA) alleges that Hyun Chul (Brian) Lee borrowed money from clients to invest in his car wash.
In a notice of hearing released on Dec. 14, the MFDA claims that Lee borrowed $60,000 from two clients to invest in a car wash business he owned and operated but did not repay the funds in accordance with the terms of the loan. The regulator also alleges that Lee recommended, facilitated, and failed to repay another $17,999 investment in a wholesale food delivery business that he owned and operated.
The MFDA argues that Lee placed his own interests ahead of that of the clients and created a conflict or potential conflict of interest which he failed to address. What's more, the regulator says that Lee did not disclose these other gainful occupations to his dealer, and that he misled and failed to cooperate with investigators.
At the time in question, Lee was licensed in British Columbia with Primerica, but his contract was terminated as a result of the events. He is no longer registered to sell mutual funds.
None of these allegations have been proven, and a hearing is scheduled to take place on January 7, 2016.