Ex-LPL Financial & Crown Capital Broker Eric Kuchel Barred After Failing to Cooperate with Mutual Fund Investigation

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FINRA barred Eric William Kuchel, formerly of LPL Financial LLC and Crown Capital Securities, LP (both in Brea, California) for failing to cooperate with an investigation related to certain mutual fund transactions effected by Kuchel.

Several complaints filed in 2016 appear in Kuchel's BrokerCheck report alleging Kuchel engaged in unauthorized variably annuity (VA) investments and unauthorized trading. One additional complaint from 2015, which was settled for $50,000, alleged unsuitable recommendations, negligence, breach of fiduciary duty, fraud, supervisory failures and lack of due diligence related to five non-traded private placements, including direct investments & LP Interests, along with real estate securities.

An additional arbitration award for $277,468 from 2012 while Kuchel (CRD #4118500) was associated with Crown Capital alleged lack of suitability, breach of fiduciary duty, misrepresentation, and supervisory failures related to non-traded real estate investment trust (REIT) sales. Broker Harold Glen "Hal" Kuchel (CRD #1332259)—also of Crown Capital through 2013—was also named a respondent in that arbitration.

Eric Kuchel's BrokerCheck report indicates he also operated the Kuchel Financial Group (an entity for LPL business) and rented additional real estate in Placentia, CA.

OHO Disciplinary Proceeding #2015047966701

According to FINRA's report, the present investigation began in 2014 as an inquiry into certain mutual fund transactions that occurred while Kuchel was associated with Crown Capital. The report continues, noting that the investigation also concerned Crown Capital's supervision of the transactions and Kuchel's involvement in a private securities transaction.

Kuchel first appeared without counsel for his on-the-record testimony, but, after stopping proceedings to confer with counsel because he was "in over [his] head," Kuchel again delayed testimony until he ultimately failed to appear or testify on multiple occasions. FINRA concluded that his ultimate failure to provide testimony along with his months-long delays materially impeded their investigation.

As a result of FINRA's findings, LPL terminated Kuchel in November 2015 for his failure to cooperate.

If you have invested with Eric William Kuchel in VAs, REITs or other private securities including other real estate sales or business at the Kuchel Financial Group, and have suffered harm as a result of unauthorized investments/trading, unsuitable recommendations, or misrepresentation and fraud, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.

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