Former NFL player accuses Wayzata financial adviser of financial misdeeds

CORRECTION: A previous version of this story incorrectly identified the team that Charles Johnson played for. He spent his entire career with the Carolina Panthers. The previous version also erroneously said Johnson had a residence in South Carolina.

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A veteran financial adviser in Wayzata, Paul R. Koch, is under review by the Financial Industry Regulatory Authority over allegations he made "risky and unsuitable" investments on behalf of a former NFL player from 2011 to 2018.

The review comes after Koch's former employer, UBS Financial Services, last December agreed to a $3.75 million settlement with Charles Johnson, a former professional football player who claimed $10 million in losses, according to FINRA records.

Johnson was a defensive end for the Carolina Panthers for 11 seasons. In addition to the FINRA case, Johnson filed a lawsuit last year in federal court in South Carolina, where he has business interests. The suit accuses Koch's wife, Michelle Koch, of financial improprieties. Michelle Koch, according to the lawsuit, controls a company called MNK Holdings, which also was named as a defendant.

Paul Koch was not named as a defendant in the lawsuit, but the suit alleges the couple invested Johnson's money in businesses in which Michelle Koch had ownership interests, including a clothing store, hair-care salon and janitorial service.

The Kochs also are accused of misappropriating hundreds of thousands of dollars from Johnson for a condominium and luxury travel.

In a recent court filing, attorneys for Michelle Koch denied most of the allegations of wrongdoing and said the South Carolina case should be dismissed because the settlement with UBS Financial Services satisfied Johnson's claims against her and Paul Koch.

Brady Thomas, Johnson's attorney, didn't return a phone call seeking comment before this story was published.

Devean George, a former NBA player who is now a Wayzata-based housing developer, said he also was a client of Koch for "three or four years" after retiring from pro basketball in 2011. George said he left Koch over unspecified disagreements.

"I shipped my business elsewhere," said George, a Minneapolis native and Augsburg University graduate.

Koch left UBS in late 2018 to join RBC Wealth Management, a Minneapolis-based unit of the Canadian financial conglomerate.

Koch leads an investment partnership at RBC's Wayzata office that managed more than $350 million in client assets, according to RBC and an industry publication in 2018.