Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor, David Lau (CRD # 4567411) was recently suspended from the securities industry by FINRA’s Department of Enforcement after an investigation into using unauthorized discretion in customer accounts.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Lau.
Registration Background for David Lau
Mr. Lau first became registered in the securities industry in 2002. FINRA BrokerCheck shows that he was most recently registered with Santa Rosa, CA based Morgan Stanley (CRD # 149777) from June 2009 to April 2021. His prior registrations and/or employments include Morgan Stanley & Co. Incorporated (CRD # 8209) from April 2007 to June 2009, and Morgan Stanley DW Inc. (CRD # 7556) from September 2002 to April 2007.
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated November 18, 2022 (No. 2021070917301), Mr. Lau consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “From March through October 2020, [Mr.] Lau exercised discretionary trading authority to effect 194 trades in five firm customer accounts without first obtaining written authorization from the customers and Morgan Stanley to treat the accounts as discretionary”;
- “Morgan Stanley’s written supervisory procedures (WSPs) prohibited registered representatives from exercising discretion in the accounts of firm customers without the customer’s prior written authorization and approval of the account as discretionary by the firm”;
- “The five customers did not provide [Mr.] Lau with prior written authorization for his use of discretion. and Morgan Stanley did not approve the accounts as discretionary accounts”; and
- By virtue of his actions, Mr. Lau violated FINRA Rule 3260(b) regarding discretionary trading and FINRA Rule 2010 regarding standards of commercial honor and principles of trade.
FINRA Suspends David Lau from Securities Industry
As a result of such violations and in addition to the above-described findings and conclusions, FINRA’s November 18, 2022 AWC also indicates that Mr. Lau consented to the following sanction(s):
- A 20-calendar-day suspension from association with any FINRA member in all capacities; and
- A fine in the amount of $6,000.00.
David Lau Has No Prior History of Securities Industry Customer Complaints
In addition to David Lau being suspended by FINRA from the securities industry after an investigation into using unauthorized discretion in customer accounts, FINRA BrokerCheck for Mr. Lau reveals that he has no prior history of customer complaints and/or customer-initiated arbitrations.
If you or someone you know has or had a brokerage account with David Lau and have concerns regarding losses in your investments or possible sales practice violations including fraud, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.