ells Fargo’s Sean Zhang Barred By FINRA
Soreide Law Group is investigating possible investor claims against securities broker Xiangyu “Sean” Zhang (CRD#: 5050282, Alhambra, California). Notably, the Financial Industry Regulatory Authority (“FINRA”) expelled Zhang, who worked for Wells Fargo from 2017 to 2019. Two of his employers, including Wells Fargo, disaffiliated with him for his improprieties on the job. And FINRA BrokerCheck shows that four investors took aim at his sales practices. These disclosures suggest that Zhang could have forged or altered documents, made bad investment recommendations, and misrepresented investments.
FINRA Bars Sean Zhang From Securities Industry
First of all, the financial self-regulatory body, FINRA, issued a permanent bar to Sean Zhang on August 2, 2019. Evidently, FINRA requested information or documents from Zhang in 2018. It is possible that FINRA sought information from Zhang to determine if he engaged in sales practice violations or possibly violated FINRA rules or securities laws. Apparently, FINRA told Zhang in April 2019 that he would be suspended from May 24, 2019 to July 31, 2019 for failure to respond to a request for information. Zhang did not timely make a request with FINRA for a termination of his suspension. In fact, it is possible that he did not communicate with FINRA altogether. Now, Zhang cannot act as a broker or otherwise associate with a broker-dealer firm.
Wells Fargo, Merrill Lynch Terminate Zhang
Evidently, Wells Fargo disaffiliated with Sean Zhang because he violated company policy by altering clients’ documents. It appears that Zhang made unauthorized changes to clients’ account documents that he later supplied to the firm for processing.
Previously, Zhang worked for Merrill Lynch. Apparently, Merrill Lynch disaffiliated with Zhang for making unsuitable recommendations to clients about municipal bonds sold through an IPO. Merrill Lynch also indicated that Zhang made unauthorized trades.
Cetera Client’s Arbitration Claim Suggests Sean Zhang Engaged In Elder Abuse
Evidently, between 2010 and 2017, Zhang worked for Cetera Investment Services. Apparently, a client of that securities firm brought FINRA Arbitration #: 19-02664 about Sean Zhang’s sales practices. First of all, the client suggested that Zhang made unsuitable investment recommendations. Supposedly, Zhang gave the client bad advice about real estate security products. Secondly, the client alleged that Zhang failed to comply with his fiduciary responsibility, and Cetera or Zhang were in breach of contract. Thirdly, the client brought a cause of action for elder abuse. It is possible that Zhang abused his financial control or possibly misused the client’s financial resources. For this reason, the client demands compensatory relief in this ongoing matter.
Zhang Allegedly Misrepresented REITs To Cetera Investors
FINRA shows that between September 10, 2018 and February 5, 2019, three more Cetera Investment Services clients filed formal disputes about Sean Zhang. Mainly, the clients alleged that Zhang misrepresented their investments in real estate securities. Supposedly, Zhang falsified information or made misleading remarks about the products. This could have included information about the investment risks or the clients’ ability to access principal. Also, at least one of those clients asserted that Zhang forged the client’s initials on documents. However, Zhang denies these allegations and these matters are currently unresolved.
Did Sean Zhang Recommend Unsuitable And Misrepresented Investments To You?
Have you experienced losses by investing with Sean Zhang? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered millions of dollars for clients who have suffered losses due to misconduct of brokers and brokerage firms.