Xiangyu “Sean” Zhang has been indefinitely barred from association with any Financial Industry Regulatory Authority (“FINRA”) member in all capacities as of August 2019. Zhang was previously registered both as a broker and as an investment adviser.

Zhang resigned from Merrill Lynch, Inc. in 2010 after facing allegations of unsuitable recommendations and placements of unauthorized limit orders. In December 2018, Zhang was discharged by Wells Fargo Clearing Services, LLC after violating the company policy and submitting altered documents. Zhang also had four customer disputes filed against him, three of which settled for $479,749.

Zhang was previously registered with Cetera Investment Services, LLC (2010-2017); LPL Financial, LLC (2017); and Wells Fargo Clearing Services, LLC (2017-2019).

Wells Fargo and Merrill Lynch Terminations

Zhang voluntarily resigned from Merrill Lynch, Pierce, Fenner & Smith, Inc. in April 2010 after allegations regarding unsuitable recommendation of IPO of a closed-end muni-bond fund and placement by RR of unauthorized limit orders with respect to the same investment.

Zhang employment with Wells Fargo Clearing Services, LLC (“WFCS”) was terminated in December 2018 after Zhang allegedly violated company policy requiring that he maintain accurate books and records where he submitted altered documents for processing.

FINRA Regulatory Disclosures

After failing to respond to FINRA’s request for information, Zhang was permanently barred by FINRA on August 2, 2019. FINRA sent Notice of Suspension and Suspension from Association letters on April 30, 2019 and May 24, 2019. Zhang failed to request termination of his suspension within three months of the notice, which automatically barred him from association with any FINRA member in all capacities.

In May 2020, Zhang failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance. Pursuant to Article VI, Section 3 of FINRA By-Laws, and FINRA Rule 9554, Zhang was suspended on May 28, 2020.

Cetera Customer Disputes

In 2019, claimants alleged violation of FINRA Rule 2111, Breach of Fiduciary Duty, Breach of Contract, Agency Liability, Elder Financial Abuse, and California Securities Law. The case settled in December 2020 for $445,000.

In 2018, claimants alleged misrepresentation regarding REITs purchased and forged initials. The case settled in April 2019 for $30,000. Another claim in 2018 also claimed misrepresentation regarding purchased REITs, and the case settled for $4,479. Zhang’s broker statement reports he did not believe he was the person the client complained about, but Cetera declined to clarify in their comments.

In 2019, a claim was denied alleging misrepresentation of investment products in real estate security.