Xiangyu Yu Zhang (also known as Sean Zhang) of Alhambra California a stockbroker formerly registered with Cetera Investment Services is the subject of a customer initiated investment related complaint which was settled on December 2, 2019 for $4,479.01 in damages based upon allegations that misrepresentations were made to the customer concerning real estate investment trusts that had been sold by Zhang when he was associated with Cetera Investment Services.
Financial Industry Regulatory Authority (FINRA) Public Disclosure confirms that Zhang has been identified in three more customer initiated investment related disputes concerning accusations of his misconduct while employed by securities broker dealers including Cetera Investment Services. On March 21, 2019, a customer filed an investment related complaint concerning Zhang’s activities where the customer sought more than $5,000.00 in estimated damages founded on accusations of misrepresentations being made about real estate securities sold to the Cetera Investment Services customer by Zhang.
On April 29, 2019, another customer initiated investment related complaint pertaining to Zhang’s conduct was settled for $30,000.00 in damages supported by allegations of Zhang’s misrepresentations relating to a real estate investment trust that he sold. The claim also alleges that the customer’s initials had been forged by Zhang to effect securities transactions while the stockbroker was employed by Cetera Investment Services.
Zhang is also referenced in a customer initiated investment related arbitration claim where the customer sought at least $5,000.00 in damages based upon accusations of real estate security transactions being effected by Zhang in violation of California securities laws and FINRA Rule 2111. FINRA Arbitration No. 19-02664 (Sept. 10, 2019). The claim alleges that the elderly customer was abused by Zhang and that a fiduciary duty which was owed to the customer had been breached by the stockbroker. The claim also alleges that an investment contract had been violated.
On August 2, 2019, Zhang was barred by FINRA from associating with any member in any capacity based upon allegations that he neglected to respond to the regulator’s request for information about his activities. FINRA Case No. 2019061138501. According to FINRA Public Disclosure, Zhang was issued a Notice of Suspension letter from FINRA on April 30, 2019 and then a Suspension from Association letter on May 24, 2019. FINRA did not receive a request from Zhang to terminate the suspension by the deadline which led to the stockbroker being automatically barred on August 2, 2019.
Zhang was discharged by Wells Fargo Clearing Services on December 19, 2018 founded on accusations that he failed to comply with the securities broker dealer’s procedures and policies. The securities broker dealer indicated that Zhang submitted customer account documents that had been altered so that transactions could be effected.
