Hung Sam (also known as Sam T. Hung and as Hung Tuan Sam) a stockbroker formerly registered with Wells Fargo Clearing Services LLC has been fined $5,000.00 and suspended for two months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings that Sam borrowed funds from a customer against Wells Fargo’s policy. Letter of Acceptance Waiver and Consent No. 2020068815701 (May 10, 2021).
According to the AWC, in September of 2020, during the time that Sam was associated with Wells Fargo Clearing Services LLC, a customer loaned him $230,000.00. The loan was evidenced through a promissory note in which Sam was required to pay the customer back at a rate of eight percent monthly until the loan was paid off.
The securities broker dealer maintained restrictions on borrowing arrangements. Stockbrokers were only permitted to borrow if the customer was a family member. The loan was also prohibited unless the securities broker dealer provided written authorization to the stockbroker.
FINRA indicated that the customer who loaned Sam money was not a family member. Sam never ran the loan arrangement by Wells Fargo Clearing Services either. Sam violated FINRA Rules 2010 and 3240 because of this.
FINRA Public Disclosure also reveals that a customer filed an investment related complaint regarding Sam’s conduct where the customer sought compensatory damages supported by accusations that their instructions were not followed which caused them to incur damages when mutual funds were not sold from their Wells Fargo Advisors account.
Sam was registered with Wells Fargo Clearing Services between July 29, 2016 and December 2, 2020.