Shepherd, Smith, Edwards & Kantas (“SSEK”), a national law firm specializing in representing wronged investors, is looking into allegations against Mengxuan Zhang, previously employed by Cetera Investment Services out of Pasadena, CA. According to allegations, Ms. Zhang allegedly falsified customer signature pages on new account forms for some customers of Cetera. This included reusing signature pages without express permission and changing the dates on the forms so as to appear that customers had re-executed. One of the forms in question was an “illiquid investment acknowledgment form.” This is the type of form an investor in such products as GPB Capital or NorthStar Healthcare REIT would have to sign. After admitting her wrongdoing to Cetera, Ms. Zhang was officially discharged. She is currently not employed by any Broker Dealer as a financial advisor.
For her actions, Ms. Zhang has been suspended as a stockbroker/advisor by The Financial Industry Regulatory Authority Inc. (FINRA). She was also fined. Ms. Zhang accepted and consented to the findings by FINRA without admitting or denying the findings. According to FINRA, such actions on the part of Ms. Zhang violate FINRA Rule 2010. According to that Rule, a stockbroker/advisor must “….observe high standards of commercial honor and just and equitable principles of trade.” Under the terms with FINRA, Ms. Zhang may not make any statement publicly which denies FINRA’s findings regardless of the fact that she never specifically denied the allegations.
Financial Advisor Fraud Attorneys
SSEK has experience in representing customers of financial advisors who acted inappropriately with client assets, or violated industry standards and Rules. SSEK’s experience shows that before a financial advisor begins mismanaging client assets, he or she often does other things that are wrong for clients, such as unsuitable investing, churning, unauthorized trading or other misconduct. Even after the bad acts are uncovered, those other wrongs often go unnoticed and are never addressed without a customer hiring a law firm like SSEK.
If you were a victim of securities fraud or negligence, it is not your fault. The experienced attorneys at SSEK are experts at FINRA arbitrations and dealing with financial advisors who have fallen under SEC scrutiny. For the last 30 years, SSEK has filed thousands of FINRA claims on behalf of consumers wronged by unscrupulous brokers and brokerage firms. If you were a client of Ms. Zhang or suspect any sort of wrongdoing from your investment advisor, contact our office for a free, no obligation consultation of your situation.