Sharon Melinda Kwan, of Arcadia, California, a stockbroker formerly registered with National Planning Corporation, has been fined $15,000.00 and suspended for four months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that she engaged in outside business activities and established unapproved customer bank accounts. Letter of Acceptance, Waiver and Consent, No. 2013038528501 (Sept. 19, 2017).
According to the AWC, from April of 2009 to April of 2013, two customers and Kwan engaged in real estate ventures without Kwan informing National Planning corporation beforehand. Apparently, her involvement in the transactions was not made known to the firm until April of 2013, where prior to that point she falsely represented her outside business activities on compliance questionnaires administered to her by the firm. As a result, FINRA found that her conduct was violative of FINRA Rules 2010 and 3270, as well as NASD Rule 3030.
FINRA also noted that Kwan created customer bank accounts even though she was restricted from doing so according to NPC’s policies. Apparently, the real estate ventures were facilitated through the funding of approximately $1,400,000.00 in banking accounts jointly owned by Kwan and the customers. FINRA found that Kwan’s failure to provide accurate attestations concerning her bank accounts and failure to disclose the bank accounts to NPC constituted improper conduct violative of FINRA Rule 2010.
Kwan’s registration with National Planning Corporation was terminated on October 4, 2013. Since November 13, 2013, Kwan has been employed with Royal Alliance Associates, Inc.
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