Walter Rae Chao Fined and Suspended by FINRA

Soreide Law Group obtained the following information from FINRA’s Disciplinary Reports:
Walter Rae Chao (CRD #4665787, Redwood City, California)
was assessed a deferred fine of $30,000, suspended by FINRA for two years and required to requalify as a general securities principal by passing the Series 24 examination before associating with any FINRA member firm as a general securities principal following his suspension. Allegedly, Chao participated in private securities transactions totaling $1.27 million without his member firm’s approval.
FINRA’s findings stated that Chao had requested approval but the firm denied his request. Although Chao did not receive any direct compensation from a firm selling the private securities for his clients’ transactions, the selling firm waived approximately $8,000 in fees associated with Chao’s mother’s purchase in the private securities.
FINRA’s findings also stated that Chao took steps to conceal his participation in the private securities transactions from his firm. Chao regularly used an unapproved email address for communications related to his clients’ transactions with the selling firm. Also Chao provided false and misleading answers in his firm’s compliance questionnaire by stating that he had not participated in any private securities transactions and by failing to disclose his use of an unapproved email address.
FINRA found that Chao, as a branch manager, failed to adequately supervise. During his firm’s 2011 and 2012 audits of his branch office, the firm notified Chao that his staff had used blank signed forms and unapproved email addresses. Chao failed to take adequate steps to ensure that the office’s files disposed of existing blank signed forms, that his staff stopped using blank signed forms, and that his staff did not use unapproved email addresses.
The suspension is in effect from August 17, 2015, through August 16, 2017.
(FINRA Case #2012034046301)
According to FINRA’s BrokerCheck, Walter Rae Chao, was registered with the following firms:
10/2012 - 01/2015 PURSHE KAPLAN STERLING INVESTMENTS - SAN MATEO, CA
08/2007 - 09/2012 LPL FINANCIAL LLC - SAN MATEO, CA
07/2003 - 09/2007 NYLIFE SECURITIES LLC - SAN MATEO, CA
If you were a client of Walter Rae Chao, or his former firms, Purshe Kaplan Sterling Investments, LPL Financial, NY Life Securities, and you experienced losses due to your broker’s recommendations, call Soreide Law Group for a no-cost consultation with an attorney on the possibility of recovering your investment losses at: 888-760-6552. Or, fill out our contact form located on our website: www.securitieslawyer.com