National investment loss lawyers KlaymanToskes reports broker/investment advisor Michelle Liao Wu (CRD# 3046373) has been suspended from acting as a broker or associating with a broker-dealer firm by the Financial Industry Regulatory Authority (“FINRA”). The decision comes after Wu allegedly improperly exercised discretion to effect 41 trades in 21 customers’ brokerage accounts without prior written authorization to exercise discretion in their accounts.
According to FINRA BrokerCheck, Michelle Wu was previously registered as a broker with Principal Securities from 2002 to 2022 in San Jose, CA.
Investors that suffered losses with Michelle Wu may be entitled to a financial recovery. Contact Lawrence L. Klayman, Esq. immediately at (888) 997-9956 or lklayman@klaymantoskes.com to discuss your recovery options at no cost.
On June 16th, 2023, FINRA’s Department of Enforcement entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) with Michelle Wu, disclosing that Wu consented to sanctions of a 20 business-day suspension from associating with any FINRA member in all capacities and a $5,000 fine.
According to the AWC, the matter originated from FINRA’s review of a Form U5 filed by LPL Financial concerning Wu. FINRA’s Form U5 is the “Uniform Termination Notice for Securities Industry Registration,” used by brokerage firms each time one of their registered employees leaves the firm, for any reason.
On May 10, 2022, LPL filed a Form U5 terminating Wu’s employment from the firm for “failure to adhere to the firm’s policies and procedures regarding discretionary trading.” FINRA’s investigation found that between May 6th June 30th, 2021, Wu effected 41 discretionary trades in 21 customers’ brokerage accounts, without the customers’ prior written authorization to exercise discretion in their accounts.
Further, according to FINRA, “Principal Securities prohibited registered representatives from exercising discretion in a customer’s account except under very limited circumstances, which are inapplicable here.” Wu violated FINRA Rule 3260(b) (Discretionary Accounts – Authorization and Acceptance of Account) and FINRA Rule 2010 (Standards of Commercial Honor and Principles of Trade).
According to FINRA, brokerage firms are responsible for the supervision of all of the activities of their registered brokers/financial advisors. Investors may be entitled to a financial recovery if their brokerage firm failed to supervise the representative managing their brokerage account, and/or if their broker/advisor made unsuitable investment recommendations.
Investors that suffered losses with Michelle Wu may have recovery options. Contact attorney Lawrence L. Klayman, Esq., to discuss your legal options at 888-997-9956 or by email at lklayman@klaymantoskes.com. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lklayman@klaymantoskes.com
www.klaymantoskes.com