Sean Zhang Embroiled in Suitability Disputes

Sean Zhang (CRD# 5050282[1]), formerly a broker registered with Wells Fargo, is involved in several investor disputes alleging unsuitable recommendations. MDF Law is investigating the former Alhambra, California-based financial professional for similar conduct. Investors with concerns are encouraged to contact us as soon as possible for a consultation.

Details about the investor disputes involving Mr. Zhang follow below. This post is based on a review of his BrokerCheck profile, a Financial Industry Regulatory Authority (FINRA) record, on January 2, 2024. 

Disputes Concern Real Estate Investments

Two parties of investors filed disputes involving Mr. Zhang in 2023. Both allege that he recommended unsuitable real estate investments. While one seeks unspecified damages and remains pending, his former member firm settled the other for a total of $240,000.

Past Disputes Settled for Total of 7 Figures 

The above-described disputes are not the only ones in Mr. Zhang’s professional record. Between 2018 and 2023, nine parties of investors filed disputes that his former member firm settled. The disputes included allegations of unsuitable recommendations, breach of fiduciary duty, and elder financial abuse[2]. His former firm settled the allegations for a total of more than $1.5 million.

FINRA Barred Sean Zhang in 2019

FINRA sanctioned Mr. Zhang in 2019 following allegations that he failed to respond to a request for information. Pursuant to FINRA Rule 9552(h), the regulator subsequently barred him from association with any FINRA member in any capacity. One year prior to his sanction, Wells Fargo fired him following allegations that he violated company policy concerning the maintenance of accurate books and records.

Understanding FINRA Rules

The disputes involving Mr. Zhang concern a number of important FINRA rules. Specifically, the following rules generally prohibit misrepresentation of material information and unsuitable investment recommendations:

• FINRA Rule 2111, also known as the suitability standard. Under this rule, brokers must tailor their recommendations to a customer’s “profile.” This includes their investment objectives, tolerance for risk, background, and other factors.
• Rule 2020, which prohibits the use of fraudulent or deceptive devices to conduct securities transactions. 
• Rule 2010, under which brokers in the course of their business must uphold “high standards of commercial honor and just and equitable principles of trade.”

FINRA: Zhang Last Based in Alhambra, California

Sean Zhang started his career as a broker in 2005, when he registered with WM Financial Services in Irvine, California. Over the following years, he worked at firms including Citigroup Global Markets, Merrill Lynch, Cetera Investment Services, and LPL Financial. He worked at his most recent member firm, Wells Fargo, from 2017 until 2019, and he was based in its Alhambra, California branch office. He is currently barred from acting as a broker.

MDF Law Advocates For Investors

Have you lost money on unsuitable investments recommended by Sean Zhang? You may have recovery options. The experienced investment fraud attorneys at MDF Law have proven experience winning substantial recoveries for the victims of broker fraud. We take cases on a contingency basis, which means clients only pay a fee if they win. Call 800-767-8040 today for a free consultation with our team.