Diane Qun Zhu of San Francisco California a stockbroker formerly registered with PFS Investments Inc. has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings that Zhu obstructed a FINRA investigation into allegations of her potential outside activities referenced by PFS Investments Inc. when Zhu had been terminated by the firm. Letter of Acceptance Waiver and Consent No. 2018060814701 (July 29, 2019).
According to the AWC, an investigation was launched by FINRA following receipt of a Form U5 which had been filed by PFS Investments Inc. regarding Zhu’s termination from the firm. FINRA was made aware that on November 20, 2018, Zhu had been discharged based upon accusations that Zhu took part in outside business activities which were not disclosed by her to PFS Investments during the time she had been employed by the firm. Evidently, PFS Investments Inc. also conveyed that when Zhu was internally investigated by the firm, Zhu claimed that she did not engage in any outside business activities despite the firm finding that her actions suggested she did.
Apparently, on June 17, 2019, a request had been made by FINRA under Rule 8210 which called for Zhu to furnish documentation and information no later than July 1, 2019 concerning her termination from the firm and her alleged outside business activities.
The AWC stated that Zhu’s legal counsel contacted FINRA in January of 2019 to reveal that Zhu received FINRA’s instructions but she would at no point furnish that documentation and information requested by FINRA. FINRA found Zhu’s conduct violative of FINRA Rules 2010 and 8210 given her failure to furnish a response requested by FINRA.
