Dennis Changseop Lee of Middle Villages New York a stockbroker formerly employed by AXA Advisors LLC has been fined $15,000.00 and suspended for nine months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he mismarked customers’ order tickets and failed to disclose his discretionary trading in an outside brokerage account. Letter of Acceptance Waiver and Consent No. 2015044444901 (Jan. 27, 2017).
According to the AWC, Lee established an investment account for an AXA customer, CC, at another brokerage firm. Apparently, Lee utilized CC’s credentials at the other brokerage firm to execute trades in the customer’s account. Evidently, one-hundred thirty seven trades were placed by Lee in the outside account during the time that Lee was associated with AXA.
Apparently, Lee never informed the firm about his involvement in the customer’s outside accounts, particularly that Lee exercised discretionary power in those accounts. Further, Lee reportedly failed to inform the other brokerage firm about his association with AXA Advisors. Consequently, FINRA found that Lee’s failure to apprise the brokerage firms about his activities was violative of FINRA Rule 2010 and NASD Rule 3040.
Moreover, FINRA stated that Lee mismarked fifty-five order tickets in AXA customer accounts. Apparently, Lee solicited trades in the customers’ accounts but indicated on order tickets that the trades were not solicited. FINRA found Lee’s conduct in this regard to be violative of FINRA Rules 2010 and 4511.
FINRA Public Disclosure reveals that Lee is referenced in three customer initiated investment related disputes pertaining to accusations of Lee’s misconduct during the time that he was associated with AXA Advisors LLC.
Specifically, a customer initiated investment related arbitration claim regarding Lee’s activities was settled for $100,000.00 in damages founded on allegations that Lee effected transactions in the customer’s account that were not suitable for the customer given the customer’s financial circumstances; transferred the customer’s funds to another account despite lacking the customer’s knowledge or permission; effected unauthorized securities trades in the customer’s account; and used customer account documents containing forged customer signatures in order to place transactions in the customer’s account. FINRA Arbitration No. 15-000098 (Apr. 7, 2016).
Thereafter, a customer initiated investment related arbitration claim involving Lee’s conduct was resolved for $100,000.00 in damages based upon accusations that Lee executed inappropriate over-the-counter equities trades in the customer’s brokerage account. FINRA Arbitration No. 15-02746 (Sept. 23, 2016). Thereafter, a customer initiated investment related arbitration claim concerning Lee’s activities was settled for $40,000.00 in damages supported by allegations against Lee of executing trades in the customer’s investment account that were not appropriate for the customer given the customer’s tolerance for risk, objectives for investing and financial state. FINRA Arbitration No. 15-03167 (Oct. 13, 2016).
Lee’s registration with AXA Advisors LLC was terminated as of April 22, 2015.
