According to FINRA’s Disciplinary and Other FINRA Actions publication, FINRA issued a suspension and fine against Michael Fang (CRD# 5653787) of J.P. Morgan Securities, LLC (CRD# 79). FINRA alleged that between May 2015 and August 2015, and while associated with J.P. Morgan Securities, Fang engaged in an outside business activity without providing any notice to his member firm in violation of FINRA Rules.
FINRA Rule 3270 prohibits a registered person from, among other things, being compensated or having the expectation of compensation from any other person as a result of any business activity outside the scope of the relationship with his or her member firm without providing prior written notice to the firm. FINRA Rule 2010 requires associated persons to “observe high standards of commercial honor and just and equitable principles of trade.” A violation of FINRA Rule 3270 is considered inconsistent with high standards of commercial honor and just and equitable principles of trade.
FINRA alleged that during the time period at issue, Respondent participated in an undisclosed outside business activity with a customer of J.P. Morgan to purchase high-end cars in the United States and export them to China. FINRA alleged that Fang’s role was to bring prospective customers to car dealerships to make purchases and then to assist with delivering those cars to United States ports for transport to China. FINRA alleged that Fang was not compensated from this business during the Relevant Period, but he entered the business arrangement with the expectation that he would receive approximately $250.00 to $400.00 for each car delivered. FINRA alleged that Michael Fang failed to notify his firm about his participation in the car exporting business. FINRA alleged that because of the foregoing Michael Fang violated FINRA Rules 3270 and 2010.
As a result, Michael Fang consented to FINRA imposing sanctions of a sixty (60) day suspension from associating with any FINRA member in any capacity and a fine of $5,000.
According to FINRA’s Broker Check, Michael Fang was registered with the securities industry for six (6) years, and was registered with the following firm(s):
J.P. Morgan Securities, LLC
CRD# 79
Fresh Meadows, NY
10/2013 – 09/2015
Essex National Securities, LLC
CRD 25454
Auburndale, NY
4/2013 – 8/2013
Chase Investment Services Corp.
CRD 25574
Oakland Gardens, NY
6/2010 – 9/2011
Northwestern Mutual Investment Services, LLC
CRD 2881
Great Neck, NY
3/2010 – 4/2010
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