According to Disciplinary and Other FINRA Actions – October 2013, David G. Zeng submitted a Letter of Acceptance, Waiver and Consent (AWC) in which he was barred from association with any FINRA broker-dealer in any capacity.  The AWC states that “Without admitting or denying the findings, Zeng consented to the described sanction and to the entry of findings that he failed to respond to FINRA requests for information and documents and failed to appear and provide FINRA-requested testimony concerning several customer complaints that his former member firm became aware of after Zeng resigned from the firm. The findings stated that Zeng informed FINRA that he would not cooperate with FINRA’s requests for testimony and documents in connection with this matter.”

According to the AWC, “On January 2, 2013, the Firm [Merrill Lynch] filed an Amended Uniform Termination Notice for Securities Industry Registration (Form U-5A), which contained an allegation that the Respondent improperly created fictitious account statements and provided them to his uncle, who was not a Customer of the Firm. The U-5A also stated that the Respondent was the subject of several customer complaints, which principally alleged unsuitable trading, misrepresentations and omissions.”

Zeng’s FINRA BrokerCheck Report indicates he worked with Morgan Stanley from 01/2001 to 06/2005, UBS Financial Services from 06/2005 to 05/2009, and Merrill Lynch from 04/2009 to 12/2011.

Broker dealers, such as Morgan Stanley, UBS and Merrill Lynch, have a fiduciary duty to monitor all the business activities and transactions of their employees. When a broker violates securities laws and/or  FINRA regulations the brokerage firm may be liable for negligent supervision and can be held responsible for investment losses.