Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Shirley Wong (Wong), currently associated with Emerson Equity LLC, has at least 5 disclosable events. These events include 5 customer complaints, alleging that Wong recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $5,000.00 on January 29, 2025.
Claimants allege breach of contract, negligence, Reg BI violations relating to purchase in 2020 of GWG corporate bonds of which the issuer subsequently filed bankruptcy.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $210,000.00 on July 05, 2024.
Unsuitable and misleading investment recommendations, omitted material facts, failure to conduct reasonable due diligence
FINRA BrokerCheck shows a settled customer complaint with a damage request of $5,000.00 on April 21, 2023.
Allegations of violations of federal securities laws, violations of California securities laws California unfair, unlawful, and fraudulent business practice, breach of contract, common law fraud, breach of fiduciary duty, and negligence and gross negligence in GWG L-bonds and The Parking REIT which subsequently sought reorganization through bankruptcy. Purchase occurred in 2018.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $5,000.00 on April 21, 2023.
Allegations of violations of federal securities laws, violations of California securities laws California unfair, unlawful, and fraudulent business practice, breach of contract, common law fraud, breach of fiduciary duty, and negligence and gross negligence in GWG L-bonds which subsequently sought reorganization through bankruptcy. Purchase occurred in 2019.
FINRA BrokerCheck shows a settled customer complaint on April 21, 2023.
Allegations of violations of federal securities laws, violations of California securities laws California unfair, unlawful, and fraudulent business practice, breach of contract, common law fraud, breach of fiduciary duty, and negligence and gross negligence in GWG L-bonds which subsequently sought reorganization through bankruptcy. Purchase occurred in 2019.
Brokers are required to adhere to the SEC’s Regulation Best Interest (Reg BI) standard of care under the Securities Exchange Act of 1934 which establishes a ‘best interest’ standard for broker-dealers and associated persons. Reg BI applies when brokers recommend a retail investor engage in securities transaction or an investment strategy involving one or more securities. Reg BI also applies to financial advice concerning the transfer of funds and opening of accounts. Reg BI is drawn from fiduciary principles that include an obligation to act in the retail investor’s best interest and the broker is prohibited from placing their own interests ahead of the investor’s interest.
There are several different aspects of the rule that brokers must comply with. One of which is the care obligations which requires brokers to form a reasonable belief that their investment advice and recommendations are in the retail investor’s best interest. The care obligations includes three components. First, the advisor must have an understanding of the potential risks, rewards, and costs associated with a product, investment strategy, account type, or series of transactions. Next, the advisor must have a reasonable understanding of the specific retail investor’s investment profile. The customer’s profile information generally includes an investor’s financial situation and needs; investments; assets and debts; marital status; tax status; age; investment time horizon; liquidity needs; risk tolerance; investment experience; investment objectives and financial goals; and any other information the retail investor may disclose in connection with the recommendation or advice. Finally, the financial advisor must use their knowledge of both their reasonable diligence into investment options as well as their knowledge of the investor’s client specific needs to consider reasonably available investment options. Those investment options must allow the broker to determine that there is a reasonable basis that the recommendation is in the retail investor’s best interest.
An advisor must understand the type of account, securities, and their client in order to meet their care obligations. The type of securities account has the potential to greatly affect retail customers’ costs and investment returns. Different types of securities accounts can offer different features, products, or services, and not all types of accounts or services would be in every investor’s best interest.
Wong entered the securities industry in 2004. Wong has been registered as a Broker with Emerson Equity LLC since 2024.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.