Xiangyu Yu Zhang, Formerly of Wells Fargo, Facing Pending Customer Disputes Alleging Unsuitable Recommendations

INVESTORS: Former Wells Fargo broker Xiangyu Yu Zhang is facing customer disputes alleging unsuitable recommendations.

Xiangyu Yu Zhang (CRD#: 5050282) was registered as a broker with Wells Fargo from 2017 until 2019. Zhang was previously registered as a broker with LPL Financial in 2017.

Zhang has fourteen disclosures on his BrokerCheck report. One customer dispute filed against Zhang was denied and one customer dispute was closed with no action taken. 

April 2022 Customer Dispute

Status: Pending

Allegations:  Claimant alleges unsuitable investment recommendations which resulted in losses

November 2021 Customer Dispute

Status: Pending

Allegations:  Claimants allege that their registered representative made unsuitable investment recommendations that resulted in losses.

August 2021 Customer Dispute

Status: Pending

Allegations: Claimants allege that registered representative recommended unsuitable investments.

July 2021 Customer Dispute

Status: Pending

Allegations: Claimants allege that the registered representative recommended unsuitable investments.

June 2021 Customer Dispute

Status: Pending

Allegations: Claimants allege that registered representative recommended unsuitable investments.

May 2020 Regulatory Judgment

Status: Final

Initiated By: FINRA

Allegations: Respondent 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.

Resolution: Letter

Bar: Suspension

Registration Capacities Affected: All Capacities

Duration: Indefinite

Duration Explanation: Continues until required payment is made or discharged.

Start Date: 5/28/2020

Regulator Statement: Pursuant to Article VI, Section 3 of FINRA By-Laws, and FINRA Rule 9554, Respondent Zhang is suspended on May 28, 2020 for failure 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.

September 2019 Customer Dispute

Status: Settled

Allegations: Clients allege violation of FINRA Rule 2111, Breach of Fiduciary Duty, Breach of Contract, Agency Liability, Elder Financial Abuse, and California Securities Law.

Damage Amount Requested: $5,000.00

Settlement Amount: $445,000.00

April 2019 Regulatory Judgment

Status: Final

Initiated By: FINRA

Allegations: Respondent Zhang failed to respond to FINRA request for information.

Resolution: Letter

Bar: Bar (Permanent)

Registration Capacities Affected: All Capacities

Duration: Indefinite

Start Date: 8/2/2019

Regulator Statement: Pursuant to FINRA Rule 9552(h) and in accordance with FINRA’s Notice of Suspension and Suspension from Association letters dated April 30, 2019 and May 24, 2019, respectively, on August 2, 2019, Zhang is barred from association with any FINRA member in all capacities. Respondent failed to request termination of his suspension within three months of the date of the Notice of Suspension; therefore, he is automatically barred from association with any FINRA member in all capacities.

December 2018 Employment Separation After Allegations

Firm Name: Wells Fargo Clearing Services

Termination Type: Discharged

Allegations: Wells Fargo Clearing Services, LLC (“WFCS”) registered person was terminated for violating company policy requiring that he maintain accurate books and records where he submitted altered documents for processing.

September 2018 Customer Dispute

Status: Settled

Allegations: Client alleges misrepresentation regarding REITs she purchased, additional allegations of forged initials.

Damage Amount Requested: $5,000.00

Settlement Amount: $30,000.00

Broker Comment: I was not the person the client complained against. Asked Cetera to clarify in their comments but they declined.

September 2018 Customer Dispute

Status: Settled

Allegations: Client alleges misrepresentation regarding REITs she purchased.

Damage Amount Requested: $5,000.00

Settlement Amount: $4,479.01

Broker Comment: I was not the person the client complained against. Asked Cetera to clarify in their comments but they declined.

April 2010 Employment Separation After Allegations

Firm Name: Merrill Lynch, Pierce, Fenner & Smith, Inc.

Termination Type: Voluntary Resignation

Allegations: 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.

If you have any information about Xiangyu Yu Zhang that you would like to share or discuss, please call our firm for a confidential consultation. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.