FINRA Bars Sean Pong after Allegations of Outside Business Activities
According to public records, on June 7, 2023, FINRA, the self-regulator that oversees brokers and brokerage firms, has reportedly barred financial advisor Sean Pong (Syany Pong, CRD#: 2406530).
Pong reportedly refused to appear for on-the-record testimony requested by FINRA in connection with its investigation into his Outside Business Activity (OBA). FINRA’s investigation originated from its review of a disclosure filed by Pong’s member firm that stated that the firm had become aware of allegations from a former customer related to the OBA.
On September 3, 2021, U.S. Bancorp reportedly disclosed through a Form U5 that Pong had been “terminated for failure to follow company policy regarding outside business activity.”
According to his broker report, Pong reportedly disclosed Other Business Activities, including investment related commercial residual real estate leasing and real estate transactions, among others.
Outside Business Activities
FINRA Rule 3270 requires registered representatives to provide prompt written notice to their member firm before engaging in any outside business activity.
Who cares if your broker is involved in outside business activities, you might say. But this rule is designed to protect investors by ensuring that registered individuals do not engage in activities that may compromise their professional responsibilities, cause conflicts of interest, or divert their attention from their primary duties to their clients.
The registered rep’s outside business activity may create a conflict of interest with their obligations to their clients. This conflict of interest could result in the registered individual making recommendations or taking actions that benefit their outside business activities at the expense of their clients’ interests.
Engaging in an outside business activity without approval may also divert the registered individual’s attention away from their primary duties to their clients. This diversion of attention could result in the registered individual neglecting important responsibilities, such as conducting due diligence on investments or monitoring their clients’ accounts.
FINRA BrokerCheck Report – Sean Pong
According to this FINRA BrokerCheck report, Sean Pong was affiliated with the following firms during his career, among others:
10/19/2012 – 09/03/2021, U.S. BANCORP INVESTMENTS, INC. (CRD#:17868), LOS ALAMITOS, CA,B, 10/01/2012 – 10/17/2012, J.P. MORGAN SECURITIES LLC (CRD#:79), HAWTHORNE, CA B, 05/02/2009 – 10/01/2012, CHASE INVESTMENT SERVICES CORP. (CRD#:25574), IRVINE, CA
Pong reportedly has two customer complaints on his record, both were denied.
The FINRA BrokerCheck tool is a free online tool that allows investors to research and verify the background and credentials of financial brokers, brokerage firms, and investment advisors registered with FINRA.
FINRA BrokerCheck provides investors with detailed information about the professional history, qualifications, and regulatory actions of brokers and brokerage firms. Investors can use the tool to verify whether a broker or brokerage firm is registered with FINRA, as well as to review their employment history, licensing status, and any regulatory actions or complaints filed against them.
Filing a Complaint against your Brokerage Firm
When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
If you have suffered investment losses with Sean Pong and U.S. Bancorp Investments, the securities attorneys at the White Law Group may be able to help you. For a free consultation with a securities attorney, please call (888) 637-5510.The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to helping investors in claims in all 50 states against their financial professional or brokerage firm. Since the firm launched in 2010, it has handled over 700 FINRA arbitration cases.
Our firm represents investors in all types of securities related claims, including claims involving stock fraud, broker misrepresentation, churning, unsuitable investments, selling away, and unauthorized trading, among many others.
With over 30 years of securities law experience, The White Law Group has the expertise to help investors to recover their securities fraud losses. For more information, please visit our website, www.whitesecuritieslaw.com.