Client's attorney alleged misrepresentation inter alia with respect to structured products. - October 2014 to September 2016.

$40,000.00

Claimant alleges, inter alia, unauthorized trading with respect to structured products - 2014 to 2015

$561,238.31

$105,000.00

FINRA

Without admitting or denying the findings, Yang consented to the sanctions and to the entry of findings that he exercised discretion in approximately 13 accounts maintained by nine customers at his member firm. The findings stated that Yang had not obtained prior written authorization from the customers to exercise discretion in their accounts, and his firm had not approved any of the accounts for discretionary trading.

Acceptance, Waiver & Consent(AWC)

Civil and Administrative Penalty(ies)/Fine(s)

$5,000.00

Suspension

All capacities

20 business days

3/19/2018

4/16/2018

Morgan Stanley Smith Barney

Discharged

Allegations involving the representative's compliance with pre-trade client confirmation requirement in connection with certain trades in non-discretionary accounts and with firm communications

Claimants alleged, inter alia, unsuitability and misrepresentation with respect to the investments in his account - August 2014 to April 2016.

$100,000.00

$57,500.00

Claimants allege, inter alia, that from 2011 to 2014 the FA made unsuitable recommendations in the client accounts.

$405,000.00

CLIENT ALLEGED, INTER ALIA, THAT THE PURCHASES OF STRUCTURED NOTES IN HIS ACCOUNTS WERE MISREPRESENTED. 2013-2015 ALLEGED DAMAGES UNSPECIFIED

$65,000.00

CLIENT ALLEGES MISREPRESENTATION AND UNSUITABILITY CONCERNING THE SAFETY AND LIQUIDITY OF AUCTION RATE SECURITIES, DAMAGES UNSPECIFIED.

$16,300,000.00

THIS MATTER INVOLVES THE SALE OF AUCTION RATE SECURITIES (ARS). THE TRANSACTION(S) AT ISSUE TOOK PLACE BEFORE MID-FEBRUARY 2008, WHEN THE ARS MARKET SUFFERED WIDESPREAD AUCTION FAILURES AND ILLIQUIDITY. THE FINANCIAL ADVISOR DID NOT CAUSE, CONTRIBUTE OR HAVE ANY CONTROL WHATSOEVER OVER THESE MARKET EVENTS. THE FIRM REACHED AGREEMENT WITH CERTAIN OF ITS REGULATORS, PURSUANT TO WHICH IT REPURCHASED ARS FOR THEIR FULL PAR VALUE FROM CERTAIN CLIENTS, INCLUDING THE INSTANT CLIENT, WHERE THEY COMPLAINED OR NOT. THE FINANCIAL ADVISOR WAS NOT A PARTY TO THAT AGREEMENT, DID NOT MAKE ANY PAYMENT TO THE CLIENT, AND WAS NOT ASKED TO AND DID NOT CONTRIBUTE TO THE REPURCHASE AMOUNT. THE SETTLEMENT AMOUNT IN ITEM 11 ABOVE REFLECTS THE PAR VALUE OF THE REPURCHASED ARS, AS REQUIRED BY FINRA REGULATORY NOTICE 09-12.