According to FINRA, Kim Ray Kunz was assessed a deferred fine of $10,000 and suspended from association with any FINRA member in all capacities for seven months for associating with his member firm while statutorily disqualified and subject to a prior suspension.

The findings revealed that Kunz had previously entered into a FINRA settlement in which he consented to a three-month suspension from associating with any member firm in all capacities. That suspension rendered him statutorily disqualified for its duration. The prior settlement also included findings that Kunz willfully violated Regulation Best Interest, which separately rendered him statutorily disqualified.

Despite these restrictions, Kunz continued to engage in securities business throughout his suspension period and did not inform his customers that he was suspended. On approximately 20 occasions, Kunz relayed customer orders by telephone and email to another registered representative at his firm, who then placed the requested trades in the customers' accounts.

This conduct represents a serious violation of the regulatory framework. Suspensions are imposed as sanctions for misconduct, and their effectiveness depends on compliance. When suspended individuals continue to conduct business, it undermines the disciplinary process and potentially exposes customers to individuals who have been found to have violated industry rules.

Statutory disqualification is a serious status that typically requires specific approval for an individual to associate with a member firm. Kunz's continued business activity without disclosure to customers deprived them of information material to their relationship with him.

The suspension is in effect from July 7, 2025, through February 6, 2026. This case demonstrates that violations of suspension orders will result in additional sanctions, compounding the original consequences.