Victim of Financial Fraud? Call Now

David Lau Suspended by FINRA For Alleged Unauthorized Trading

Jan 13, 2023 Unauthorized Trading

David Lau (CRD #: 4567411), a broker registered with Morgan Stanley, has been suspended by FINRA, according to his BrokerCheck record, accessed on January 6, 2023. Keep reading if you have questions about his alleged conduct as a broker.

FINRA Suspension

On November 18, 2022, David Lau consented to the entry of findings that he allegedly executed unauthorized trades in Morgan Stanley client accounts from March through October 2020.

A Letter of Acceptance, Waiver & Consent (AWC) alleged that David Lau executed 194 in five client accounts without obtaining written authorization from the clients or from Morgan Stanley to engage in discretionary trading.

The AWC concluded that this alleged trading activity violated FINRA Rules 3260(b) and 2010.

FINRA Rule 3260

FINRA Rule 3260(b) limits brokers to exercising their trading discretion in pre-approved discretionary accounts.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

Sanctions

David Lau consented to the following sanctions:

  • $6,000 fine
  • 20-calendar day suspension

His suspension ran from November 21 to December 10, 2022.

You can read the full AWC here.

Termination from Morgan Stanley

On March 3, 2021, David Lau was fired from Morgan Stanley Smith Barney following allegations concerning his compliance with the requirement for pre-trade client approval before executing certain trades in non-discretionary accounts.

Background Information

David Lau has passed the following exams:

  • Series 65 – Uniform Investment Adviser Law Examination
  • Series 63 – Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 31 – Futures Managed Funds Examination
  • Series 7 – General Securities Representative Examination

He previously worked for the following firms:

  • Morgan Stanley (CRD#:149777)
  • Morgan Stanley & Company (CRD#:8209)
  • Morgan Stanley DW (CRD#:7556)

Kurta Law Can Help

If you worked with David Lau and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.