Broker Li Lin Hsu Suspended by Request of FINRA

Sales practice violations, misconduct and failure to respond to a FINRA request for information lead to suspension

Formerly registered with Ameriprise Financial in California, ex-broker Li-Line Hsu was recently suspended by the Financial Industry Regulatory Authority (FINRA). He was suspended under Rule 9552 which was failure to keep information current or to provide information.

Individuals who are subject to FINRA’s jurisdiction are responsible for providing testimony, data, reports, materials or information that has to be filed with the government agency. Individuals also responsible for keeping their supporting documents and membership applications current.

If FINRA suspects that this information has lapsed, written notice is provided to a member specifying that he or she has currently failed to comply with the rule and that there is a 21-day period for compliance with this rule. After the 21-day period has passed, the individual will be suspended.

Hsu was also the subject of two consumer complaints and an additional regulatory investigation. The first consumer complaint alleges that Hsu conducted financial transactions in the customers’ account without their knowledge or permission.

The second complaint alleges that Hsu misrepresented the value of the franchise they purchased, which led them to close the business and file for bankruptcy. It’s also alleged that the former AFSI advisor transferred over $300K from their account to an unknown third-party account without their authorization.

In March 2015, Ameriprise Financial Services terminated Hsu for violating company policy violations by maintaining a beneficiary relationship with a client, commingling funds and conducting business with a foreign client.

Finding out that a broker you were intending to work with has not complied with all government regulations and may have been involved in dubious business practices can be extremely frustrating, especially if you believe that you or a loved one has lost money or otherwise been defrauded by such an individual.

Unfortunately, all too many people fall victim to unethical brokers every single year. It takes a lot of trust to hire someone to help you with your investments and financial decisions, and sadly some people prey on this relationship in order to defraud you.

FINRA uses BrokerCheck, a service to provide details about all brokers who have suspensions and other regulatory actions pending against them. You can verify whether or not your broker has been listed in this database with a report before engaging in any business transaction with him or her.

If you have already been the victim of a situation involving a less than ethical broker, you should work with an experienced securities arbitration attorney to help recover some of your losses. Contact Silver Law Group today to have your case reviewed at no cost. We handle every case we accept on a contingent fee basis, which means you pay nothing unless we successfully recover losses on your behalf.