Michael Zheng of New York, submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly converting funds of a J.P. Morgan Chase customer for his own personal use.
Zheng was employed by JPMorgan Chase Bank, N.A. (Chase Bank) as a personal In October 2012, Zheng became associated with J.P. Morgan Securities LLC (J.P. Morgan Securities). By December 2012, Zheng obtained his Series 6 and 63 licenses and was fully engaged with the securities industry. In February 2014, Zheng’s registration with the firm was terminated for his alleged violations of FINRA code conduct.
FINRA found that in December 2013, Zheng took a bank customer’s unattended debit card from a back office of the Chase Bank branch and programmed the card’s PIN on a coworker’s unlocked computer. FINRA alleged that Zheng later used the debit card at a nearby ATM to withdraw $404 from the bank customer’s account without the client’s knowledge or consent.
These actions are a direct violation of FINRA Rule 2010 that “A member, in the conduct of its business, shall observe high standards of commercial honor and just and equitable principles of trade”. Zheng was consequently barred from association with any FINRA member.
Stockbrokers have been known to engage in many types of practices which violate industry and firm rules, practices, and procedures. In order to protect customers from stockbroker misconduct, FINRA rules require broker-dealers like J.P. Morgan Securities to establish and implement a reasonable supervisory system. The implementation of the rules require supervisors to monitor employees to ensure they comply with federal and state securities laws, securities industry rules and regulations, and the firm, such as J.P. Morgan Securities own policies and procedures. If broker dealers and/or their supervisors do not establish and implement these protective measures, they may be liable to investors for damages which flow from the misconduct. As a result, investors who have suffered losses because of their stockbroker’s unlawful or prohibited conduct can file a claim to recover damages against broker dealers like J.P. Morgan Securities, which should consistently oversee its employees in order to prevent stockbroker misconduct.
Have you suffered losses in your J.P. Morgan Securities investment account due to your stockbroker’s misconduct? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against stockbrokers for unsuitable recommendations, misrepresentations, and/or other unauthorized and prohibited conduct.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 35 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities, and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please post a comment, call (800) 732-2889, send Mr. Pearce an email at email@example.com, and/or visit our website at www.secatty.com for answers to any of your questions about this blog post and/or any related matter.