Billy Hai Zhang of Los Angeles California a stockbroker formerly registered with AXA Advisors LLC has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings that Zhang was the subject of a customer initiated investment related complaint which he settled away from AXA Advisors. Letter of Acceptance Waiver and Consent No. 2018057646701 (Mar. 3, 2020).
According to the AWC, in November of 2016, one of Zhang’s customers complained to him concerning his handling of variable life insurance transactions. The customer indicated that he was steered by Zhang towards liquidating a portion of the customer’s life insurance policy to fund another policy that previously lapsed because premiums were not paid. On November 23, 2017, the customer was provided $10,600.00 from Zhang as part of resolving the customer’s complaint. Zhang never indicated to AXA Advisors that the customer complained or that Zhang tried to settle the matter away from the securities broker dealer. FINRA found that Zhang violated FINRA Rule 2010.
FINRA Public Disclosure reveals that on January 24, 2019, a customer filed an investment related complaint involving Zhang’s conduct in which the customer requested unspecified damages based upon allegations that misrepresentations had been made by the stockbroker. According to the complaint, the fees and charges pertaining to annuity and insurance transactions had not been detailed by Zhang. The customers’ signatures had allegedly been forged by Zhang to effect the transactions. The complaint also alleges that the policies Zhang sold failed to be suitable for the customer.
Zhang was terminated by AXA Advisors on April 19, 2018 when he was the subject of an internal investigation into his activities including his alleged misuse of a customer’s funds.
