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?
When 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 (800) 738-1960 for a case evaluation today.