Xiangyu Yu Zhang (also known as Sean Zhang) of Arcadia, California, a stockbroker formerly registered with Cetera Investment Services, is the subject of a customer initiated investment related FINRA securities arbitration claim in which the customer requested up to $99,999.99 in damages founded on allegations that Zhang provided unsuitable investment recommendations to the customer concerning real estate investment trusts (REITs) and municipal bonds while Zhang was registered with Cetera Investment Services. Financial Industry Regulatory Authority (FINRA) Arbitration No. 22-00593 (April 5, 2022).
FINRA Public Disclosure shows that Zhang has been identified in nine more customer initiated investment related disputes containing accusations of his activities while employed by Cetera Investment Services. On February 5, 2019, a customer filed an investment related complaint regarding Zhang’s conduct where the customer sought $5,000.00 in damages supported by allegations of misrepresentations concerning real estate securities sold to the Cetera Investment Services customer.
On December 28, 2020, another customer initiated investment related FINRA securities arbitration claim concerning Zhang’s activities was resolved for $445,000.00 in damages based upon accusations of elder financial abuse, breach of fiduciary duty, breach of contract, and violation of California securities law and FINRA Rule 2111 concerning real estate security transactions at Cetera Investment Services. FINRA Arbitration No. 19-02664.
Zhang is referenced in a customer initiated investment related written complaint on July 23, 2021, where the customer sought compensatory damages supported by accusations that the customer had been placed into a risky investment contrary to their wishes of investing in low-risk products. According to the complaint, the customer was misled regarding a REIT.
On June 18, 2021, another customer filed an investment related FINRA securities arbitration claim involving Zhang’s conduct in which the customer requested compensatory damages founded on allegations of unsuitable advice by Zhang concerning a real estate security transaction. FINRA Arbitration No. 21-01516 (June 18, 2021).
On July 1, 2021, a different customer filed an investment related FINRA securities arbitration claim regarding Zhang’s activities in which the customer requested compensatory damages based upon allegations that Zhang made unsuitable REIT recommendations when Zhang was employed by Cetera Investment Services. FINRA Arbitration No. 21-01623.
Zhang is also identified in a customer initiated investment related written complaint on August 6, 2021, where the customer sought compensatory damages alleging unsuitable REIT recommendations by Zhang during the time that he was associated with Cetera Investment Services.
On November 18, 2021, an additional customer filed an investment related FINRA securities arbitration claim concerning Zhang’s conduct in which the customer requested compensatory damages for unsuitable recommendations Zhang at Cetera Investment Services.
Zhang has been barred from associating with any FINRA member in any capacity based on accusations that he failed to comply with a FINRA inquiry in 2019. By the time of the FINRA request, he was the subject of three disputes and had been terminated by both Merrill Lynch and Wells Fargo. Public Disclosure shows that Zhang was discharged by Wells Fargo Clearing Services on December 19, 2018, founded on allegations of Zhang’s altering of customer documents in violation of the securities broker dealer’s policy.
According to FINRA Public Disclosure, Zhang failed to comply with FINRA’s request after being suspended. The stockbroker was provided until August 1, 2019, to either respond to the request or seek that the suspension be terminated by FINRA on other grounds. Zhang’s failure to respond resulted in an automatic bar on August 2, 2019.
