Investors potentially experienced sales practice violations due to securities broker Katy Yun Zhao (also known as Katy Zhao) [CRD: 5264406, Pasadena, California], according to disclosures on FINRA BrokerCheck. Evidently, Katy Zhao worked for Morgan Stanley from November 3, 2009, as a broker and from December 23, 2016, as an investment adviser. Keep reading to find out more about the disclosures involving this securities broker.
Specifically, a client filed a complaint about Katy Zhao on February 21, 2025. The client alleged that Zhao failed to follow their instructions to transfer the positions in their account in kind to the contra firm. Because of this, the client allegedly sustained damages on exchange traded funds. Therefore, on February 21, 2025, Morgan Stanley settled this matter by paying the client $156,637.15 in damages.
When a securities broker is accused of failing to follow a client's investment instructions, it means the broker did not carry out specific directives given by the investor. For example, an investor may instruct a broker to transfer certain assets, purchase or sell specific securities, or execute trades in a particular way. Failing to follow those instructions can lead to unintended financial consequences for the client, especially if market conditions change or if the instructions involved tax-sensitive or time-sensitive decisions. Brokers have a duty to act in accordance with client instructions unless those instructions are unlawful or violate firm policy. Allegations of this nature may indicate negligence, miscommunication, or willful misconduct by the broker.
Did you experience losses because of Katy Zhao? Feel free to contact Soreide Law Group online or at (888) 760-6552. Speak with a securities attorney about a possible recovery of investment-related losses. Soreide Law Group is experienced with recovering losses for investors throughout the country. The firm represents clients through a contingency fee basis and advances all costs. Zhao and any securities broker dealers / investment advisories Zhao worked for deny any allegations of sales practice violations.
Soreide Law Group has filed a FINRA arbitration on behalf of our clients (Claimants) against: CONCORDE INVESTMENTS SERVICES, LLC, and BERTHEL, FISHER & COMPANY FINANCIAL SERVICES, INC (Respondents). The Claimants are in their late 70s, retired, and according to the lawsuit, were not looking to take any unnecessary risks with their retirement savings. The Claimants […]
THEODORE WILLIAM BYRER (THEODORE W BYRER, TED BYRER) was registered as a broker with MORGAN STANLEY of Indianapolis, Indiana, from 11/11/2013 - 04/20/2023. He was most recently registered with INTERNATIONAL ASSETS ADVISORY, INC of Westfield, Indiana, from 05/09/2023 - 09/17/2024. According to his BrokerCheck CRD report, dated 7/23/2026, THEODORE W BYRER was suspended for 14 […]
MARK LAWRENCE SULLIVAN (MARK SULLIVAN, MARK L SULLIVAN), formerly with UBS Wealth Management USA in New York City, was fined $10,000 and suspended for three months by the Financial Industry Regulatory Authority (FINRA) over allegations that he traded in customers’ accounts without the proper approval. Sullivan was previously registered both as a broker and as an […]
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