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Hung Sam Suspended by the California Department of Insurance

Mar 11, 2022 FINRA Suspension

Hung Sam (CRD #: 6065447), a broker formerly registered with Wells Fargo Clearing Services, was suspended for five days by the California Department of Insurance, according to his BrokerCheck record, accessed on February 24, 2022. 

The suspension stems from allegations that Hum Sam failed to notify the California Department of Insurance of a FINRA suspension within 30 days.

FINRA Allegations

According to the findings, in September 2020, while registered with Wells Fargo Clearing Services, Hung Sam borrowed $230,000 from the firm's customer without the firm's knowledge or prior written authorization and in violation of the firm's written procedures. 

A broker may only borrow from one of their firm's customers if that member firm has written procedures permitting borrowing from customers. If there are written guidelines, the broker in question must follow all of those internal requirements together with the stipulations stated in FINRA Rule 3240

A violation of FINRA Rule 3240 also constitutes a violation of FINRA Rule 2010, which requires associated persons to observe high standards of commercial honor and just and equitable principles of trade in the conduct of their business.

Sanctions

As part of the terms of the AWC, Hung Sam consented to: 

  1. A two-month suspension
  2. A $5,000 fine

You can read the full copy of the AWC here.

Denied Dispute

According to the allegations filed on April 12, 2020, Hung Sam failed to execute his client's sell order. The firm denied the dispute.

It is the duty of a broker to perform a customer's orders promptly in a manner best suited to serve the customer's interest. Failure to execute a client's order violates FINRA Rule 2010, which requires all registered members to observe high standards of commercial honor and just principles in their business dealings. 

When a broker fails to follow your instruction and/or execute your order in a timely manner, you may be able to recover your investment losses resulting from the failure to follow your instructions.

Background Information

Hung Sa has passed the following exams:

  • Series 66 - Uniform Combined State Law Examination
  • SIE - Securities Industry Essentials Examination
  • Series 7 - General Securities Representative Examination

He is a registered broker in New Mexico, California, and Virginia. He is also a registered investment adviser in California. 

Hum Sam has worked with the following firms: 

  • Kovack Advisors (CRD #: 140808) 
  • Wells Fargo Clearing Services (CRD #: 19616) 
  • Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD#:7691)

Kurta Law Can Help

If you have been victimized after working with Hung Sam, don't hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For nearly 20 years, Kurta Law has advocated for investors 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.