Kyung Song Resigned from MML: Fraud Allegations
Kyung Song (CRD# 2760764), formerly a broker registered with MML Investors Services, resigned from that firm following allegations of fraud. MDF Law is currently investigating the former East Hills, New York financial professional for similar conduct. We encourage investors with concerns to contact us as soon as possible.
Details about Ms. Song’s resignation from her former firm can be found in this post. The information herein is based on a January 11, 2024 review of her BrokerCheck profile, a Financial Industry Regulatory Authority (FINRA) record.
MML “Permitted” Resignation Following Discovery of Policy Violations
Ms. Song resigned from MML Investors Services on November 8, 2023, as her BrokerCheck profile discloses. She was “permitted to resign” following the firm’s “discovery of securities related activity” with a prospective customer that violated company policy, it adds. Furthermore, she allegedly defrauded the customer in question “while assisting on an account transfer,” according to the disclosure.
Closed Dispute Alleged $77,000 Fraud
Roughly a month prior to her recommendation, on October 13th, 2023, an investor lodged a dispute involving Ms. Song. According to a disclosure on her BrokerCheck profile, the claim alleged that she “defrauded” the investor “out of $77,000.” The dispute was closed with no action taken.
Brokers Must Observe High Standards of Honor
The disclosures on Ms. Song’s BrokerCheck profile offer little detail regarding the alleged fraud leading to the investor dispute and her resignation. Broker fraud comes in a variety of forms: unsuitable investment recommendations, excessive trading, misrepresentation of material facts, unauthorized transactions, and breach of fiduciary duty are just a few. Specific FINRA and SEC rules prohibit each of these activities, but there is also a “catch-all” rule that pertains more generally to fraudulent conduct. FINRA Rule 2010, to be precise, requires brokers to “observe high standards of commercial honor and just and equitable principles of trade.” This rule is an essential guardrail that protects investors against misconduct not specifically described by other regulations.
MML’s History of Alleged Misconduct
Ms. Song’s former employer, MML Investors Services, has its own history of alleged misconduct, according to the firm’s BrokerCheck profile. This includes one investor dispute that resolved with an arbitration award to the claimant. In 2010, the investor filed allegations that the firm breached its fiduciary duty, breached contract, and engaged in negligent conduct. In 2013, a panel of arbitrators issued an award of $1,137,923 to the claimant.
Securities regulators have also initiated enforcement actions against the firm on 25 occasions described in its BrokerCheck profile. In 2022, for example, the Massachusetts Securities Division sanctioned MML over alleged failures to supervise variable annuity sales. It censured the firm and ordered it to pay a fine of $250,000.
FINRA: Kyung Song Last Based in East Hills, New York
Kyung Song launched her career as a broker in 1996. That year, she registered with New England Securities in Uniondale, New York. In 2012, she left the firm for Lincoln Financial Advisors Corporation in Melville, New York, where she remained until joining MSI Financial Services in 2016. One year later, she left MSI for MML’s office in East Hills, New York, where she worked until her resignation in 2023. With 25 years of experience as a broker, she has completed one state securities law exam and two general industry/products exams.
MDF Law Advocates for Investors
Did you suffer investment losses while working with Kyung Song? MDF Law may be able to help you secure a recovery through the FINRA arbitration process. Contact our seasoned investment fraud attorneys at 800-767-8040 to learn more. Our clients only pay a fee if they win their case, and we currently offer free consultations to investors across the country. You may have a limited window to file your case, so don’t delay: call MDF Law today.