Former California-based Morgan Stanley broker Kevin Yang was recently suspended
by FINRA and charged a $5,000 fine for exercising discretion in customer
accounts without prior written authorization. He was discharged from Morgan
Stanley in April 2017 and is not currently registered at any firm.
According to his
Broker Check report, Yang has been the subject of four customer disputes. Of those complaints,
three have the same or similar accusations by his customers relating to
structured products that Yang. The allegations included unsuitability
and misrepresentation relating to the sale of structured products.
Structured Products Are Often Unsuitable for Investors
Structured products are often a poor substitute for more traditional investments, as they
can be risky, complex, and carry heavy fees.
In many cases, brokers like Yang promote structured products to investors
without adequately explaining the associated fees, lock-up periods, and
the level of liquidity (or lack thereof) involved. The brokers/salespeople
themselves are often untrained about, and unaware of, the factors that
drive product prices, and so they are unable to fully or accurately disclose
them to their customers.
As a result, misrepresentation and unsuitable investment recommendations
related to structured products frequently occurs. Unfortunately, in many
situations, by the time investors discover the complexities and limitations
involved with structured products, they have already lost a considerable
amount of money.
Have You Lost Money by Investing in Products You Didn't Understand?
brokers like Yang misrepresent structured products and recommend them without fully explaining their
complexities, investors who lose money may have a legal claim against
the broker and/or the brokerage firm who sold the investments. Brokerage
firms have a fundamental obligation to only recommend investments to its
customers that are suitable for them. They also have an obligation to
disclose all the material facts and risks associated with a recommendation.
If brokerage firms fail in this regard, they can be held liable for losses
stemming from this misconduct.
If you lost money while investing with Kevin Yang, or unsuitable recommendations
have caused your investment accounts to dwindle, the attorneys at Meyer
Wilson would like to hear from you. The team has recovered hundreds of
millions of dollars on behalf of investors throughout the nation. Call
(888) 390-6491 for a case evaluation today.