Terry Xing-Zhao Wu, of San Francisco, California, a stockbroker formerly registered with Thrivent Investment Management, Inc. has been fined $7,500.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he engaged in outside business activities and solicited unauthorized life insurance investments. Letter of Acceptance, Waiver and Consent, No. 2016048896401 (Nov. 16, 2017).
According to the AWC, from July of 2014 to November of 2015, while Wu was registered with Thrivent, the firm prohibited him from engaging in outside business activities, including any investment based activities, absent approval from Thrivent. Yet, Wu created an outside business with a partner which provided college planning based services to customers, accumulating $28,000.00 from customers as a result. The AWC stated that Wu never informed Thrivent about his outside activities. Thrivent fired Wu on January 20, 2016, founded on accusations of his unapproved outside business activities and improper public appearances.
Moreover, in September of 2016, during the time that Wu became employed with USA Financial, Wu solicited insurance business from a prospective customer to be consummated through a bank loan. Yet, Wu’s activities involved the sale of insurance policies by way of insurance carriers or wholesalers that the firm never approved of. Evidently, USA Financial did not authorize life insurance products to be sold by Wu, and had never been made aware of Wu’s activities until after he engaged in them. FINRA found Wu’s unapproved outside business activities to be violative of FINRA Rules 2010 and 2370.
FINRA Public Disclosure reveals that on April 23, 2013, a customer initiated investment related written complaint involving Wu’s conduct was settled for $7,570.75.00 in damages based upon allegations that Wu failed to follow the customer’s instructions to reallocate the customer’s variable annuity assets.
USA Financial fired Wu on October 13, 2016, supported by accusations that he partook in unauthorized outside business activities, corresponded with customers in violation of the firm’s policies, and did not notify the firm about a FINRA investigation in reference to his activities involving premium finance insurance trust products.
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