Michael Cho Suspended by FINRA
Michael Cho (CRD #: 2456460), a broker formerly registered with Morgan Stanley, has been suspended by FINRA, according to his BrokerCheck record, accessed on October 1, 2022. Read on to learn more about his conduct as a broker.
Suspension by FINRA
On July 19, 2022, Michael Cho consented to the entry of findings that he allegedly drafted, signed, and distributed 50 comfort or proof of funds letters on Morgan Stanley letterhead without firm authorization and that these letters contained material misrepresentations.
According to a Letter of Acceptance, Waiver & Consent (AWC), Michael Cho allegedly sent these letters to various third parties at the request of a firm client from July 2020 to January 2021. The client allegedly requested the letters on behalf of his company that was listed as the buyer in certain purchase contracts, ranging in value from $2 billion to nearly $10.45 billion, for Covid-related personal protective equipment.
The AWC alleges that these letters falsely claimed that the client held sufficient assets in a corporate account at the firm to cover these purchase contracts, when in fact the client’s corporate account had previously been closed and his personal account held only $100,000.
The AWC concludes that these allegations constitute violations of FINRA Rule 2010.
FINRA Rule 2010
FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.
Sanctions
Michael Cho consented to the following sanctions:
- $5,000 fine
- 15-month suspension
His suspension began on August 15, 2022, and will end on November 14, 2023.
You can read the full AWC here.
Termination from Morgan Stanley Smith Barney
On February 11, 2021, Michael Cho was fired from Morgan Stanley following allegations that he discussed and sent inaccurate, improper, and unauthorized letters referencing a former client and funds not held at the firm.
Background Information
Michael Cho 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
In the past, he worked for the following firms:
- Morgan Stanley (CRD#:149777)
- Morgan Stanley & Company (CRD#:8209)
- Morgan Stanley DW (CRD#:7556)
- Salomon Smith Barney (CRD#:7059)
Kurta Law Can Help
If you worked with Michael Cho 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.