FINRA

RESPONDENT KUNZ FAILED TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT AGREEMENT OR TO SATISFACTORILY RESPOND TO A FINRA REQUEST TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE.

LETTER

Suspension

ANY CAPACITY

N/A

6/18/2013

PURSUANT TO ARTICLE VI, SECTION 3 OF FINRA BY-LAWS, AND FINRA RULE 9554, RESPONDENT KUNZ IS SUSPENDED JUNE 18, 2013 FOR FAILURE TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT AGREEMENT OR TO SATISFACTORILY RESPOND TO A FINRA REQUEST TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE.

Failure to supervise, negligence, breach of fiduciary duty, misrepresentations, omission effects, and suitability

$73,833.12

$57,960.00

The Award has not been paid.

UTAH DIVISION OF SECURITIES

THE DIVISION ALLEGES THAT KUNZ: (1) COMMITTED SECURITIES FRAUD UNDER SECTION 61-1-1(2) OF THE UTAH UNIFORM SECURITIES ACT ("ACT") BY MISREPRESENTING OR OMITTING MATERIAL FACTS IN CONNECTION WITH THE OFFER OR SALE OF SECURITIES; (2) COMMITTED SECURITIES FRAUD UNDER SECTION 61-1-1(3) OF THE ACT BY ENGAGING IN ACTS, PRACTICES, AND A COURSE OF BUSINESS WHICH OPERATED AS A FRAUD; (3) ACTED AS AN UNLICENSED AGENT UNDER SECTION 61-1-3(1) OF THE ACT BY RECEIVING COMPENSATION FOR SECURITIES TRANSACTIONS THROUGH VARIOUS UNLICENSED ENTITIES; AND (4) MADE FALSE STATEMENTS TO THE DIVISION UNDER SECTION 61-1-16 OF THE ACT THROUGH FALSE AND MISLEADING FORM U-4 FILINGS.

Stipulation and Consent

Bar (Permanent)

ALL CAPACITIES

PERMANENT

7/28/2011

Cease and Desist

Civil and Administrative Penalty(ies)/Fine(s)

$750,000.00

FINRA

KUNZ FAILED TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT AGREEMENT OR TO SATISFACTORILY RESPOND TO A FINRA REQUEST TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE.

LETTER

Suspension

ALL CAPACITIES

N/A

10/2/2009

PURSUANT TO ARTICLE VI, SECTION 3 OF FINRA BY-LAWS, AND FINRA RULE 9554, KUNZ'S FINRA REGISTRATION IS SUSPENDED OCTOBER 2, 2009 FOR FAILURE TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT AGREEMENT OR TO SATISFACTORILY RESPOND TO FINRA REQUESTS TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE.

BREACH OF FIDUCIARY DUTY; FRAUDULENT CONCEALMENT/NONDISCLOSURE; FRAUD; NEGLIGENT MISREPRESENTATION; AND UNJUST ENRICHMENT.

$1,000,000.00

PANEL FINDS: KUNZ IS LIABLE FOR NONDISCLOSURE AND FRAUDULENT CONCEALMENT. The Award has not been paid.

CLAIMANT PURCHASED REAL ESTATE, NOT A SECURITY. THE FIRM DID NOT RECIEVE A COMMISSION. CLAIMANT HAD AN ACCOUNT AT THE FIRM AND PER THE CLAIMANT'S REQUEST FUNDS WERE WIRED FROM THIS ACCOUNT TO THE TITLE COMPANY FOR THE PURCHASE.

NASD NKA FINRA

NASD RULES 1021, 2110, 2420 - RESPONDENT, ACTING ON BEHALF OF HIS MEMBER FIRM, FAILED TO COMPLY WITH A SANCTION IMPOSED BY NASD THAT WAS AFFIRMED BY THE UNITED STATES SECURITIES AND EXCHANGE COMMISSIONS (SEC) AND THE U.S. COURT OF APPEALS FOR THE TENTH CIRCUIT IN THAT IT SUSPENDED HIS MEMBER FIRM FROM PARTICIPATING AS PRIMARY PLACEMENT OR SALES AGENT IN SECURITIES OFFERINGS UNTIL THE FIRM HAD UNDERTAKEN CERTAIN MEASURES, INCLUDING THE RETENTION OF AN INDEPENDENT CONSULTANT TO REVIEW ITS POLICIES AND PROCEDURES RELATING TO SECURITIES OFFERINGS. THE COMPLAINT ALLEGES THAT KUNZ, ACTING ON BEHALF OF HIS MEMBER FIRM, DIRECTED THE PAYMENT OF COMPENSATION FOR SECURITIES TRANSACTIONS TO A NON-MEMBER AND CAUSED THE NON-MEMBER TO COMPENSATE REGISTERED REPRESENTATIVES OF THE FIRM TO AVOID NASD DETECTION OF THE FIRM'S PARTICIPATION IN SECURITIES OFFERINGS WITHOUT HAVING COMPLIED WITH THE INDEPENDENT CONSULTANT REQUIREMENT SET FORTH IN THE NASD DECISION. THE COMPLAINT ALSO ALLEGES THAT, WHILE SUSPENDED BY NASD IN A PRINCIPAL CAPACITY, HE FUNCTIONED IN SUCH CAPACITY BY ACTIVELY ENGAGING IN THE SUPERVISION, MANAGEMENT AND SOLICITATION OF THE FIRM'S INVESTMENT BANKING AND SECURITIES BUSINESS.

Decision & Order of Offer of Settlement

Bar

WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, KUNZ CONSENTED TO THE DESCRIBED SANCTION AND TO THE ENTRY OF FINDINGS; THEREFORE, HE IS BARRED FROM ASSOCIATION WITH ANY NASD NKA FINRA MEMBER IN ANY CAPACITY.

KUNZ DENIES THAT HE FAILED TO COMPLY WITH A SANCTION IMPOSED BY NASD THAT WAS AFFIRMED BY THE UNITED STATES SECURITIES AND EXCHANGE COMMISSIONS (SEC) AND THE U.S. COURT OF APPEALS FOR THE TENTH CIRCUIT. KUNZ DENIES PAYMENT OF COMPENSATION FOR SECURITIES TRANSACTIONS WERE DIRECTED TO A NON-MEMBER AND THE NON-MEMBER COMPENSATED REGISTERED REPRESENTATIVES OF THE FIRM TO AVOID NASD DETECTION OF THE FIRM'S PARTICIPATION IN SECURITIES. KUNZ DENIES THAT WHILE SUSPENDED BY NASD IN A PRINCIPAL CAPACITY, FUNCTIONED IN SUCH CAPACITY OF THE FIRM'S SECURITIES BUSINESS.

NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.

NASD CONDUCT RULES 1120, 2110, 3010, 3110, 3070 - RESPONDENT KUNZ PERMITTED HIS MEMBER FIRM TO CONDUCT A SECURITIES BUSINESS WHILE FAILING TO MAINTAIN THE MINIMUM NET CAPITAL; CAUSED HIS MEMBER FIRM TO FAIL TO MAKE AND KEEP CURRENT, ACCURATE BOOKS AND RECORDS; ACTING ON BEHALF OF HIS MEMBER FIRM, FILED MATERIALLY INACCURATE FOCUS PART II REPORTS; SUBMITTED A COMMUNICATION PURPORTING TO BE A NOTICE PURSUANT TO SEC RULE 17A-11 THAT CONTAINED MATERIALLY INACCURATE INFORMATION; FAILED TO REPORT AN ARBITRATION SETTLEMENT WITHIN THE SPECIFIED TIME PERIOD; PERMITTED AN INACTIVE PERSON TO FUNCTION IN A CAPACITY REQUIRING REGISTRATION; AND, FAILED TO ESTABLISH, MAINTAIN AND ENFORCE WRITTEN SUPERVISORY PROCEDURES DESIGNED TO ACHIEVE COMPLIANCE WITH NASD CONDUCT RULE.

Decision

Monetary/Fine

$28,753.00

Bar

Suspension

REQUALIFICATION AND COST

NAC DECISION RENDERED DECEMBER 15, 2003 WHEREIN KUNZ IS BARRED FROM ASSOCIATION WITH ANY NASD MEMBER AS A FINOP, SUSPENDED FROM ASSOCIATION WITH ANY NASD MEMBER IN ANY PRINCIPAL CAPACITY FOR SIX MONTHS, REQUIRED TO REQUALIFY IN ANY PRINCIPAL CAPACITY IN WHICH HE SEEKS TO BE REGISTERED, FINED $28,753 JOINTLY AND SEVERALLY, AND ASSESSED COSTS OF $5,131.82, JOINTLY AND SEVERALLY. IF NO FURTHER ACTION, DECISION WILL FINAL JANUARY 20, 2004. THE DECISION IS NOW FINAL. THE SUSPENSION SAHLL BEGIN ON MONDAY, FEBRUARY 16, 2004, AND END AT THE CLOSE OF BUSINESS ON MONDAY, AUGUST 16, 2004.

INVESTMENT MANAGEMENT CORPORATION AND KEVIN KUNZ DO NOT AGREE WITH THE DECISION. WILL NOT APPEAL.

NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.

NASD RULES 2110, 2120 AND 2310 (FORMERLY ARTICLE III, SECTIONS 1, 2 AND 18 OF THE RULES OF FAIR PRACTICE) - RESPONDENT KUNZ OFFERED AND SOLD TO MEMBER OF THE PUBLIC SECURITIES BY MEANS OF A PRIVATE PLACEMENT MEMORANDUM OR PRIVATE PLACEMENT MEMORANDA THAT CONTAINED A MATERIAL MISREPRESENTATION OF FACT AND OMITTED TO DISCLOSE MATERIAL INFORMATION; KUNZ, OFFERED AND SOLD TO MEMBERS OF THE PUBLIC SECURITIES THAT WERE NEITHER REGISTERED PURSUANT TO SECTION 5 OF THE SECURITIES ACT OF 1933 NOR EXEMPT FROM REGISTRATION; KUNZ RECOMMENDED AND SOLD SECURITIES TO PUBLIC CUSTOMERS FROM WHOM SUCH RECOMMENDATINS AND TRANSACTIONS WERE UNSUITABLE IN VIEW OF THE CUSTOMERS' FINANCIAL SITUATION AND NEEDS; KUNZ PERMITTED AN UNREGISTERED PERSON TO RECOMMEND SECURITIES TO CUSTOMERS OF THE FIRM WHOM SUCH RECOMMENDATIONS WERE UNSUITABLE IN VIEW OF THE CUSTOMERS' FINANCIAL SITUATION AND NEEDS; EXECUTED FOR SUCH CUSTOMERS THE TRANSACTIONS IN SECURITIES THAT RESULTED FROM THE UNSUITABLE REOMMENDATIONS MADE BY THE UNREGISTERED PERSON; AND, KUNZ COMPENSATED AN UNREGISTERED PERSON $89,000 IN CONNECTION WITH OFFERS AND SALES OF SECURITIES.

Decision

Civil and Administrative Penalty(ies)/Fine(s)

Monetary Penalty other than Fines

Requalification

Suspension

DECISION RENDERED 11/3/1997 WHEREIN KUNZ IS CENSURED AND FINED $30,000, JOINTLY AND SEVERALLY (J&S); FINED $5,000, INDIVIDUALLY; SUSPENDED FROM ASSOCIATION WITH ANY NASD MEMBER IN ANY PRINCIPAL CAPACITY FOR ONE YEAR; SUSPENDED FROM ASSOCIATION WITH ANY NASD MEMBER IN ANY CAPACITY FOR ONE MONTH; REQUIRED TO REQUALIFY BY EXAM AS A PRINCIPAL BEFORE FUNCTIONING IN A PRINCIPAL CAPACITY AFTER THE CONCLUSION OF THE PRINCIPAL SUSPENSION AND AS A REPRESENTATIVE WITHIN 90 DAYS OF THE CONCLUSION OF HIS SUSPENSION AS A REPRESENTATIVE OR CEASE TO FUNCTION IN ANY REPRESENTATIVE CAPACITY UNTIL HE SO REQUALIFIES; AND ASSESSED COSTS OF $2,597.20, J&S. THE PORTION OF THE FIRST CAUSE OF COMPLAINT REGARDING VIOLATIONS OF CONDUCT RULE 2120 WAS DISMISSED IN THAT THE COMMITTEE CONCLUDED THAT KUNZ DID NOT ACT WITH SCIENTER. IF NO FURTHER ACTION, DECISION IS FINAL 01/05/1998. * 11/12/1997 - APPEALED TO THE NBCC. * NAC DECISION RENDERED 7/7/1999, WHEREIN THE FINDINGS AND SANCTIONS ARE AFFIRMED IN PART AND MODIFIED IN PART; THEREFORE, KUNZ IS FINED $20,000, J&S, FINED $5,000, INDIVIDUALLY, SUSPENDED FROM ASSOCIATION WITH ANY NASD MEMBER IN A REPRESENTATIVE CAPACITY FOR 30 DAYS AND IN A PRINCIPAL CAPACITY FOR ONE YEAR, TO RUN CONCURRENTLY, IMPOSED HEARING COSTS OF $2,597.20, J&S, ORDERED TO REQUALIFY BY EXAMINATION AS A REPRESENTATIVE WITHIN 90 DAYS OF THE CONCLUSION OF HIS SUSPENSION AS REPRESENTATIVE OR CEASE TO FUNCTION IN ANY REPRESENTATIVE CAPACITY UNTIL HE SO REQUALIFIES AND ALSO ORDERED TO REQUALIFY AS A PRINCIPAL BEFORE FUNCTIONING IN SUCH CAPACITY. THE NAC REVERSED AND DISMISSED, HOWEVER, THE DBCC'S FINDING THAT RESPONDENT VIOLATED RULES 2110 AND 2310 BY MAKING UNSUITABLE RECOMMENDATIONS TO CUSTOMERS. THE NAC AFFIRMED THE DBCC'S DISMISSAL OF THE FIRST CAUSE OF ACTION THAT IT ALLEGED A VIOLATION OF CONDUCT RULE 2120. IF NO FURTHER ACTION, DECISION IS FINAL 8/6/1999. *ON 7/29/99 APPEALED TO THE SEC. *01/16/02 THE SEC UPHELD THE NAC'S FINDINGS AND SACTIONS. *03/13/02 APPEALED TO 10TH CIR. *03/28/03 U.S. COURT OF APPEALS FOR THE TENTH CIRCUIT DECISION IN KUNZ V. SEC AFFIRMED A SECURITY AND EXCHANGE COMMISSION DECISION, WHICH HAD UPHELD THE NATIONAL ADJUDICATORY COUNCIL'S DECISION. THE NAC IMPOSED A $20,000 FINE, JOINT AND SEVERAL, ON THE FIRM AND KEVIN KUNZ, AND A $5,000 FINE ON KUNZ INDIVIDUALLY. THE NAC SUSPENDED KUNZ FOR 30 DAYS IN ALL CAPACITIES AND FOR ONE YEAR IN A PRINCIPAL CAPACITY. THE NAC ALSO ORDERED THAT KUNZ REQUALIFY IN ALL CAPACITIES. THE SUSPENSION IN ALL CAPACITIES WILL COMMENCE WITH THE OPENING OF BUSINESS ON MAY 5, 2003 AND WILL CONCLUDE AT THE CLOSE OF BUSINESS ON JUNE 3, 2003. THE SUSPENSION IN A PRINCIPAL CAPACITY WILL COMMENCE WITH THE OPENING OF BUSINESS ON MAY 5, 2003 AND WILL CONCLUDE AT THE CLOSE OF BUSINESS ON MAY 4, 2004. FINE PAID 08/20/2003.

DECISION BY THE TENTH CIRCUIT COURT OF APPEALS TO UPHOLD THE SUSPENSION AND FINE. THE COURT DID NOT WANT TO OVERTURN A AN SRO DECISION. IMC AND KEVIN KUNZ DOES NOT AGREE. SUSPENSION PERIOD WAS COMPLETED AND SUCCESSFUL RETESTING FOR SERIES 7 WAS COMPLETED.